Parametric insurance is one of the major global trends in insurance innovation. It is made up of pre-set parameters and metrics that combine big data and mobile phone technology to provide innovative and real-time solutions. This is changing the once traditional insurance sector, removing the burden of claims documentation and administration by automating and accelerating the process from beginning to end. The resultant customer experience typically rescues a highly positive experience from the jaws of a negative one!
In practice, parametric insurance provides cover and service in a way that isn’t covered or is often excluded by indemnity style policies. Pre-set compensation is provided automatically when an event occurs rather than just after a loss and the parameters and reimbursement values are determined before the cover starts. The insured doesn’t have to provide proof or undergo a lengthy claims process and the insurer doesn’t need to spend resources and money on assessing claims – the data and technology does all the hard work for everyone.
With global travel making a come-back and airlines and airports at times struggling to cope with demand, Blink Parametric's real-time Flight Disruption and Lost Luggage solutions are proving directly relevant and necessary assistance for global travellers impacted by the chaos of flight delays, and luggage handing problems.
Flight disruption solution
- Once a traveller registers their flight details, Blink Parametric monitors the flight in real time
- If the flight is disrupted, by standard cancellation or delay that meets the pre-set parameters, the traveller is automatically notified and offered service options immediately
- Solutions are designed to give the customer choices on what to do next to mitigate the disruption ‘there and then’
- If the flight is delayed, airport lounge access can be delivered automatically on the traveller’s smartphone or alternatively an immediate cash payout or hotel accommodation provided
- If the trip is completely cancelled, Blink Parametric can make a cash payout or can arrange and pay for alternative flight options.
Parametric solutions suit travel because it has the capacity to resolve problems in real-time, when the insured traveller needs a helping hand. That’s transformative in insurance terms both for the industry and for the policyholder.
Real-Time Delayed or Lost Luggage solution
- A traveller just needs to buy the policy (or it is embedded already in their travel insurance) and register their flight in advance
- Near instant payouts are delivered via PayPal or direct to their bank if luggage is delayed by 30 minutes at destination and a further payout if luggage is still missing after 48 hours to help for the rest of their stay.
All the delay triggers and reimbursement values or resolutions can be flexed according to the insurer and brand’s wishes.
Data is always the key for parametric insurance; there is a wealth of data available that insurance companies already use and it is universally trusted. The data allows Blink Parametric to map options and solutions along a typical Yes/No parametric model so that each problem scenario triggers an action to assist the customer. It’s simple, effective and powerful.