Axa combines anticipatory typhoon cover with travel insurance in Hong Kong

By Henry Gale

Aug 13 - (The Insurer) - Axa Hong Kong and Macau is providing parametric typhoon insurance and travel coverage free of charge to eligible car owners in a partnership with a motor dealer, the insurer said in a statement on Wednesday.

Axa is offering the coverage to members of Motogo, a membership platform launched by dealer DHG Motors. The travel insurance includes medical coverage and benefits for travel delays, missed events and journey curtailment. Axa and Motogo said the initiative aimed to address a protection gap in the region, since travel insurance penetration is relatively low despite increasing cross-border mobility.

The typhoon coverage differs from most other consumer parametric catastrophe covers in two ways. First, the trigger is not based on a measurement of a tropical cyclone itself, but on a prediction issued by the Hong Kong Observatory, with payouts due for warning signals of No. 9 or above.

Second, payouts are not made in cash, but in "Motos points", which can then be redeemed for motor services, other experiences and gifts available on the Motogo platform.

Axa Hong Kong and Macau has previously launched parametric covers for flight delays and outdoor workers at risk of heatwaves in the last 12 months.