A recent evaluation by the Hong Kong Consumer Council has identified major discrepancies in the scope of benefits offered by travel insurance providers in the city, particularly affecting older adults and children.
The study reviewed 27 single-trip travel insurance products offered by 11 insurers and found that while premiums may be similar, benefit caps and policy features vary considerably.
According to the council, 92% of the plans reduced benefit limits for “medical expenses” or “personal accidents” when the insured individuals were seniors or minors. These reductions occurred despite the fact that these groups typically pay the same premiums as adult policyholders. In certain cases, benefit levels were cut by up to 75%, or the coverage was entirely excluded.
The council suggested that insurers reassess the adequacy of protection provided to these demographics.
The survey revealed considerable variability in benefits offered across plans with similar pricing. For instance, among plans costing under HK$200 for a seven-day Asia trip, the medical coverage limits ranged from HK$250,000 to HK$500,000. One plan offered minimal protection in categories such as personal property, travel documents, or trip interruption.
Out of the 27 plans analysed, all included coverage for emergency medical treatment incurred during overseas travel, with benefit limits for adults spanning from HK$100,000 to HK$1.5 million.
A total of 18 plans offered full reimbursement for emergency medical evacuations, while the rest capped the payouts, with limits ranging from HK$200,000 to HK$3 million.
For overseas hospital stays, 21 plans provided cash allowances, typically offering between HK$2,000 and HK$12,000 depending on the number of days hospitalised.
Seniors and children were consistently subject to lower benefit limits. One insurer halved the benefits for individuals aged 75 or older and those under 18 in areas including accident coverage and trip cancellation. Two other plans set a fixed HK$300,000 personal accident limit for these groups – equivalent to 60% or even 30% of the coverage available to adults.
Only three plans offered equivalent benefits for seniors, though these came at a higher cost – up to 36% more than standard premiums. Most of the surveyed products (18 out of 27) imposed a maximum enrolment age, ranging from 79 to 85. Just three plans extended enrolment up to age 120.
Ninety-three percent of the plans offered compensation for trip cancellations or curtailments, with maximum payouts ranging between HK$3,500 and HK$50,000. Covered causes included:
However, claim eligibility depended on the insurer’s specific definitions, which varied across providers.
Trip delays were also commonly covered. Most plans provided compensation for delays exceeding five to six hours, with payouts ranging from HK$500 to HK$5,000. One insurer substituted monetary reimbursement with access to airport lounge services after a one-hour delay.
Twenty-five plans addressed baggage delays, offering either cash allowances or reimbursements for essential item purchases, depending on the duration of the delay.
Rental vehicle excess coverage, useful for self-drive holidays, was available in 22 plans, typically covering HK$2,000 to HK$10,000 in costs related to vehicle damage or theft.
Only three plans offered limited “kidnap and ransom” coverage, with claims capped at HK$15,000 per incident. In these cases, an official police report is required to substantiate the claim. Some insurers advised policyholders’ families to contact authorities such as the Hong Kong Immigration Department or the relevant consulate in emergencies.
Coverage for COVID-19-related illnesses was limited. Only three policies specifically excluded such claims, reflecting the varying treatment of pandemic-related risks in policy terms.
These findings coincide with broader industry concerns around shifting insurance capacities and legal disputes, as outlined in a recent WTW report.
The report indicated that while current aviation insurance capacity remains intact, looming legal disputes and reinsurance volatility could impact future pricing and coverage availability.
WTW noted that reinsurers had largely performed well at the start of 2025. However, unresolved legal battles over aircraft stranded due to the Russia-Ukraine conflict could pressure reinsurance capacity. Some direct insurers had moved early to secure reinsurance terms in late 2024 in anticipation of these challenges.
Inflation and a rise in lower-value claims, which are typically retained by insurers, have also strained margins. Although insurers sought to raise hull and liability rates last year, abundant capacity kept pricing competitive. This may persist into mid-2025 unless major losses or claim trends shift dynamics.
