How parametric insurance is being used for flight delays

Canadian travel insurance provider TuGo has launched a complimentary flight delay service for travellers.

The parametric insurance solution MyFlyt comes through a partnership with Ireland-based Blink, the travel insurtech that developed the product. If a flight is delayed by two hours or more, the travel insurance customer registered with MyFlyt instantly gets access to an airport lounge pass or cash payout deposited into their bank account.

Is this type of service standard in the Canadian travel industry?

“While far from standard in Canada and only recently, there are others offering services in this category,” a TuGo spokesperson told Canadian Underwriter Thursday, when the product was launched. “We believe we are the only travel insurance company offering a choice between a lounge pass or cash payout at the two-hour delay mark.”

Once a traveller registers their flight details, Blink monitors the flight in real-time. When a flight is delayed by two hours or more, the traveller is automatically notified via text message on their mobile phone and email, TuGo said in a press release.

TuGo’s executive director and chief production officer Kathy Starko said the Richmond, B.C.-based travel insurer is “looking forward to expanding our services across the buyer’s journey. MyFlyt is a great first step, with a solution that eases the stress of travel delays of our customers.”

The partnership was a culmination of collaboration between TuGo, Blink and Red Consulting, a Canadian travel insurance and medical assistance consulting company.

Founded in 2016, Blink was one of the first insurtech start-ups to focus on travel insurance.