Flight Cancellation Insurance

About

When flight cancellations happen passengers find themselves in a stressful situation they have no control over. We developed a 100% digital, user-friendly & cost-effective insurance solution that enables passengers to instantly gain control of the situation when flights are cancelled.   The Market: U.S. domestic flights is our main and first go-to-market. More than 700,000,000 passengers on U.S. domestic flights are exposed each year to the irritating consequences of flight cancellations. According to the FAA, that number is expected to grow to 1,037,000,000 by 2037. About 125,000 U.S. domestic flights with 12,500,000 booked passengers are cancelled each year. After launching our solution in the U.S. market and starting to gain meaningful traction we intend to explore expansion opportunities into other big markets, such as India, China, Japan and Europe. In July 2017 we conducted an extensive market survey in the U.S. We collected respondents from all socioeconomic groups in proportion with the U.S. census. Passengers from all such groups have shown a strong interest in our solution in the premium range we intend to sell it at.   The Problem: When flight cancellations happen, passengers are: worried they will not be able to make it to their destination within a reasonable time. completely dependent on the airline's very limited alternative options for substitute flights. in the dark about their rights and are concerned about losing the money they paid for the flight ticket. Currently, there is no stand-alone, user-friendly & cost-effective insurance solution to this problem.   Our Solution - General: A digital-based, attractively priced insurance plan, which enables passengers to instantly take control of the situation when flights are cancelled. With our insurance plan, passengers will no longer be forced to depend on the airlines' very limited alternative options. Passengers may select an instant free rebooking with all airlines or a full refund to their bank account at a simple click of a button on their smartphone. No more nerve-wracking waiting time to speak with an airline agent, no more limited options for alternative flights and no more tedious claim process to go through.   Our Solution - New Age User Experience: Purchasing the plan: exceptionally short application process enabled by automatic extraction of information from passengers’ e-tickets. The plan may easily be purchased through any device with internet connection. Notification of flight cancellation: a text message sent to the customer as soon as the flight is cancelled with two options to choose from: rebooking or refund. Rebooking: a link with a list of all substitute flights sent via text message to the customer. A new e-ticket sent to customer’s email immediately. Refund: a refund will immediately be deposited into customer’s bank account.   Our Solution - The System: A variable premium formula, which enables us to offer attractive premiums all-year-round through a sophisticated actuarial model which sets premiums based on the specific details of each and every flight. We analysed tens of millions of U.S. domestic flight records from the past six years and detected various patterns that affect the probability of flight cancellations to take place. We built our actuarial model based on our findings and we continuously track flight records and can instantly adjust our actuarial model upon detection of new patterns and changes in existing ones. Real-time flight and weather alerts from various sources and instant adjustments of premiums accordingly.