Airline travel insurance costs 34% more despite same cover, 10Life test finds

Airline-embedded travel insurance premiums can vary by as much as 34% despite identical coverage, raising questions about pricing transparency and the economics of embedded insurance distribution, according to a new test by Hong Kong comparison platform 10Life.

Its research and data analytics team compared the same airline travel insurance plan across six booking scenarios for a 14-day Hong Kong–New York trip. Premiums ranged from HK$859 (US$110) to HK$1,153, with higher airfares consistently corresponding to higher insurance premiums.

10Life found an almost linear relationship between airfare and the add-on premium, which increased by around HK$22 for every HK$1,000 rise in ticket price. The finding is notable because insurance premiums would typically be expected to reflect factors such as destination, trip duration, traveller age, and coverage rather than the underlying airfare.

The test also highlighted a substantial difference between airline-embedded and other distribution channels. One policy was quoted at HK$262 through an insurance comparison platform and HK$287 directly through the insurer, compared with as much as HK$1,153 for the airline booking-page add-on.

For insurers and travel-distribution partners, the findings highlight the potential tension between the convenience and visibility of embedded insurance and the need for transparent, risk-aligned pricing.

Dexter Ng, Head of Research and Data Analytics at 10Life, said: “Consumers generally understand why seat selection or baggage fees may differ, because the service itself is different. But if it is the same travel insurance plan, with the same coverage and the same benefit limits, the premium should not rise simply because the airfare is higher.”

10Life stressed that the test covered one airline, route, and traveller profile, so the results should not be taken as representative of the wider airline market.

As of August 2026, global airline capacity has risen 2.6% year on year as regional disruption reshapes travel.