According to Taoyuan International Airport Corp (TIAC), as the proportion of air travellers purchasing travel insurance through online channels has increased, sales of coverage in Taiwanese airports has been hit. As a result, the average bid price for an insurance sales counter in airports such as Taiwan Taoyuan International Airport has dropped; six years ago, the average price for a counter in this airport was NT$3.2 million, while this year it has dropped by 18 per cent to $2.6 million.
“It seems that the insurers are not willing to pay as high a price as before,” said Hong Yu-fen, Senior Vice-President of TIAC, “ as more consumers are buying insurance online rather than at an airport.”
Contracts for these counters are renewed on a six-yearly basis; the bidding process for the current contracts was completed in September, and the contracts themselves came into effect this month.
Terry Tseng, Senior Vice-President of Cathay Life – which claims to sell an average of 300 policies per day via its airport counter, representing 25 per cent of its overall travel insurance sales – said that while many younger travellers are indeed purchasing insurance online rather than in the airport, families still provide a lot of business in the airport.
Other providers bidding successfully for counters in the airport include Shin Kong Life Insurance and Chubb Corp Taiwan.