CPP Group UK, an MGA and ancillary insurance products and services provider, has partnered with travel insurance provider Just Travel Cover to launch ‘Smart Luggage’, reportedly the UK’s first parametric lost luggage product.
The product uses parametric technology to offer real-time support to airline passengers whose checked luggage cannot be located following an airport arrival. Customers upload an image of their delayed luggage receipt, and the platform will begin searching for the missing checked luggage.
Customers will then receive an automatic £50 pay-out, directly to their PayPal or bank account after 30 minutes of their luggage being unlocatable at the destination airport, and a further £500 if it is still not located after 48 hours.
The parametric technology automates the entire process from the moment the traveller registers their luggage as missing at the customer services desk at the destination airport.
In addition, the repatriation service of Smart Luggage keeps the customer informed via text message and email to help locate and return the luggage.
It is available as an annual multi-trip and singular policy and distributed as a standalone product, add-on or embedded insurance product.
It comes as research from SITA revealed that 24.8 million items of luggage were mishandled in 2018 costing the industry approximately £1.8bn.
Carl Carter, CEO of CPP UK, said: “Proactive and innovative service and insurance solutions for the traveller are of paramount importance as international air travel begins to gain momentum again.
“No insurance sector has faced the same scale of disruption and frequency of challenges throughout the pandemic as travel insurance. But the past year and a half has also given the travel insurance industry the opportunity to reinvent itself, improve customer and traveller experience and start to rebuild customer trust.”
He added: “We’re proud to be partnering on a parametric solution that supports the traveller and travel insurance industry alike, especially after both have endured months of rapidly changing restrictions and complex claims processes.
“Even as restrictions elsewhere lift and familiarity creeps back, travel is one aspect of our lives that Covid-19 continues to play havoc with. By partnering with Just Travel Cover, we’re stepping up together to support the travel insurance industry in what will be a testing, but worthwhile road back to recovery.”