HONG KONG — A recent study by the Hong Kong Consumer Council has highlighted significant gaps in travel insurance coverage that disproportionately affect seniors and children. The evaluation, which reviewed 27 single-trip policies from 11 insurers, found considerable differences in the benefits provided, even among plans with similar premiums.
Discrepancies in Benefits for Seniors and Children
The study found that 92% of the travel insurance plans reduced coverage for key areas such as medical expenses and personal accident benefits for elderly and minor policyholders. Despite paying the same premiums as adult travelers, seniors and children faced benefit cuts of up to 75%, with some coverage completely excluded.
“The findings underscore the need for insurers to reassess the protection offered to these groups,” the Consumer Council said in its report.
Variability in Coverage for Medical and Accident Benefits
The survey also revealed wide variations in the medical coverage offered across the plans. Among options priced under HK$200 for a seven-day trip in Asia, coverage limits ranged from HK$250,000 to HK$500,000. Notably, one plan provided minimal coverage for personal property, travel documents, or trip interruption.
Of the 27 plans examined, all included emergency medical treatment coverage for overseas travel, with benefit limits ranging from HK$100,000 to HK$1.5 million. Eighteen plans offered full reimbursement for emergency medical evacuations, while others capped the payouts at limits ranging from HK$200,000 to HK$3 million.
For hospital stays abroad, 21 plans provided daily cash allowances, typically between HK$2,000 and HK$12,000, based on the length of hospitalization. However, seniors and children consistently faced lower benefit limits compared to adults. In some cases, benefits were reduced by half for individuals aged 75 or older and children under 18. Other policies set fixed accident coverage limits of HK$300,000 for these groups, equivalent to 30% to 60% of the coverage available to adults.
Only three plans provided equivalent benefits for seniors, though these came with a higher premium—up to 36% more than standard policies. The majority of the surveyed plans (18 out of 27) imposed a maximum enrollment age, typically between 79 and 85 years, while just three extended coverage to policyholders up to age 120.
Gaps in Coverage for Travel Disruptions and Emerging Risks
The study also uncovered inconsistencies in coverage for trip cancellations, curtailments, and other travel disruptions. While 93% of the plans offered compensation for trip cancellations, payout limits ranged from HK$3,500 to HK$50,000, with covered causes including natural disasters, civil unrest, and medical emergencies involving immediate family members. However, eligibility for claims varied depending on how insurers defined these events.
Most plans also provided compensation for travel delays exceeding five to six hours, with reimbursements ranging from HK$500 to HK$5,000. One insurer even substituted monetary reimbursement with airport lounge access after a delay of just one hour. Coverage for baggage delays was offered by 25 plans, with allowances or reimbursements for essential items purchased during delays.
Self-drive holidaymakers were also catered for, with 22 plans providing rental vehicle excess coverage of between HK$2,000 and HK$10,000.
In contrast, only three plans provided limited “kidnap and ransom” coverage, with claims capped at HK$15,000 per incident, and some insurers required a police report to substantiate claims.
Coverage for COVID-19 and Emerging Risks
The handling of COVID-19-related claims varied widely. While most plans did not specifically exclude COVID-19 claims, three policies explicitly excluded coverage for pandemic-related risks, reflecting the inconsistent approach across insurers.
The study’s findings coincide with broader industry concerns, including shifting insurance capacities and ongoing legal disputes. A recent report by WTW highlighted potential challenges in aviation insurance, with unresolved legal cases, such as the impact of the Russia-Ukraine conflict on reinsurance, potentially affecting pricing and coverage availability in the future.
Global Market Considerations
WTW’s report also pointed to pressures on insurance margins due to inflation and an increase in lower-value claims, which insurers typically retain. While reinsurers had largely performed well at the start of 2025, the ongoing uncertainty surrounding legal battles and claims trends could alter the competitive pricing environment, potentially impacting future policies and premiums.
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