Lawmaker takes aim at airlines, OTAs over ‘deceptive’ travel insurance sales
Democrat Sen. Ed Markey has laid into the airline industry over ‘deceptive’ practices peddling travel insurance to customers that often ‘fail to provide promised coverage.’
Markey’s office published the ‘Flyer Beware: Is Travel Insurance Worth It?’ report which found ‘questionable travel insurance marketing practices for policies that offer minimal coverage and often erect hurdles to the payment of claims.’
It also criticized similar practices of OTAs.
"The only thing skimpier than airplane legroom is the coverage these insurance policies," Markey said.
"Consumers are being tipped upside down, money is shaken out of their pockets, and it’s split between the airlines and the insurance companies. It’s just plain wrong."
The senator reviewed policies sold by nine major airlines including Delta, JetBlue, United Airlines and Alaska Airlines, as well as several online travel agencies.
The research found that just two insurance providers underwrite all the policies and Markey said not one airline was willing to disclose its financial relationship with insurers AIG Travel Guard or Allianz.
The US Travel Insurance Association responded by claiming ‘travel insurance is a valuable product that protects consumers’ financial investment.’
The association said it was not contacted by Markey’s office before the report was published.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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