Buying travel insurance as an add-on to your flight ticket costs more, yet offers less cover?

As the Easter travel peak approaches, demand among Hong Kong residents for outbound travel is rising. In recent years, “embedded insurance”, which allows travellers to add travel insurance directly during the flight booking process, has become a common choice for many passengers. When travellers purchase flights, airlines often simultaneously recommend relevant travel insurance products, making insurance almost as simple as “one tap to complete”.

However, does this convenience mean a better choice? 10Life’s latest policy test found that, in some cases, travel insurance purchased through an airline’s “one-click add-on” can be nearly twice as expensive as market alternatives, yet the coverage does not improve accordingly, and in some cases is even “higher premium, lower coverage”.

According to 10Life’s test, using the example of a 5-day trip to Tokyo, Japan by a 35-year-old Hong Kong traveller:

• Purchasing travel insurance as an add-on on the airline’s platform, the premium is approximately HK$356 
• Taking out the MSIG iTravel Go Plan A * via 10Life, the premium is approximately HK$177

This means a saving of about HK$179, with a premium difference of around 50%.
A further comparison of the coverage details shows that, despite the lower premium, MSIG iTravel Go Plan A offers better protection in several key areas:

Overall, despite having premiums that are nearly half the price, MSIG iTravel Go Plan A offers more than double the cover for almost all benefit items. The widest gap is in the outpatient cover for follow-up consultations in Hong Kong after returning home; the accidental cover differs by more than 25 times, followed by trip cancellation and hospital cash. It is worth comparing carefully before taking out cover.

In addition to basic protection, this product also covers a number of options that are less commonly found in add-on plans, including amateur dangerous sports cover, airport lounge access for flight delays, mobile phone damage cover and an “cancel for any reason” add-on, making its scope of cover relatively comprehensive.

In terms of the trigger threshold for travel alerts, airline travel insurance is generally only effective under a Black Outbound Travel Alert, whereas this high-cover product extends to Yellow and above, providing travellers with earlier protection support.

Furthermore, the insurer recommended by this airline also offers similar products on the 10Life platform, but it can be seen that the premium is higher while the cover is lower.

Overall, when the same insurer’s product is purchased through an airline channel, the premium is higher while several key benefits are actually lower. The disparity is particularly pronounced in follow-up outpatient treatment coverage in Hong Kong after returning home, with a difference of more than 15 times. Other benefits, such as medical expenses, trip cancellation and baggage coverage, are also generally lower, indicating that the sales channel can directly affect the product’s overall value for money.

Although embedded insurance is convenient, it does not necessarily mean it is the most suitable choice. Travellers should proactively compare the prices and coverage details of different products before departure, to ensure they obtain adequate and comprehensive protection at a reasonable premium, rather than accepting a single option for the sake of convenience.
 

“Embedded insurance” refers to the integration of insurance products into the consumer purchase process, for example, offering a travel insurance add-on option at the same time as purchasing an airline ticket. Such products are generally recommended by airlines or platforms by default, and the range of options available to consumers is relatively limited, meaning they may not be able to compare different products comprehensively.
Industry research from overseas shows that this type of travel insurance currently accounts for around 15% to 20% of airlines’ total revenue, and can increase revenue per ticket by approximately 10% to 30%. In Europe, more than 90% of airlines have integrated insurance into the booking process. Under this “embedded insurance” model, the industry generally adopts a commission-sharing mechanism, with an average commission rate of around 24%, and in some cases exceeding 50%.^1,2

As such products are mostly offered by platforms by default, and the insurance purchase decision is closely tied to the ticket-buying process, consumers may not be able to compare comprehensively the cover and prices of different plans, thereby affecting the value for money of their choice.
 

The application process and user experience on comparison platforms are also very convenient. Users simply enter their destination and departure date to instantly compare a range of travel insurance plans and complete the purchase, without having to visit different websites one by one. By purchasing selected plans through 10Life, you can also enjoy a limited-time 50% discount, enhancing your cover and saving on premiums without compromising convenience. Spend a few extra minutes comparing before you travel; sometimes, paying half the premium can mean double the protection. Click here to compare multiple travel insurance plans.

Sources and notes:

• The premium figures are based on actual testing, and the testing and data were last updated on 27 March 2026.
• The relevant premiums are based on a five-day Japan individual plan.
• The coverage comparison data is extracted from the relevant policy terms and conditions, official policy documents and publicly available information.
• Premiums and coverage may vary depending on the time and channel of purchase, as well as individual policy terms, and are for comparison reference only. The relevant policy terms and the insurer’s final approval shall prevail.

Industry research sources:

1. battleface, "Embedded insurance is broken. Here's how to fix it": https://www.battleface.com/en-gb/partner-insights/embedded-insurance-is-broken-here-is-how-to-fix-it/
2. KASKO, "Embedded Travel Insurance for Airlines: Untapped Potential" (2025): https://www.kasko.io/post/embedded-travel-insurance-airlines

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.