Research on Changes in Travel Insurance Premiums Driven by Climate Change: A Case Study of Hong Kong Region

Zhimin Sun

doi:10.62051/ijgem.v4n1.06

Authors

Zhimin Sun

DOI:

https://doi.org/10.62051/ijgem.v4n1.06

Keywords:

Climate change, Travel insurance, Premium pricing, Flight delays or cancellations, Claim occurrence

Abstract

This research aims to study the impacts of climate change on worldwide general travel insurance in Hong Kong and to provide a scientific basis for premium pricing strategies in a climate-driven context. The study adopts both qualitative and quantitative research methods to reveal the relationship between climate change and travel insurance. The qualitative analysis part constructs a theoretical framework through literature review. Taking into account the current state of research, the impact of climate change on the demand for travel insurance as well as the challenges and opportunities of premium pricing strategies are discussed in depth. The quantitative analysis section collected data on flights at the Hong Kong International Airport (departures, delays, and cancellations) and travel insurance claim occurrence. The weather conditions were also checked through the weather website to analyze the correlation between climate factors and insurance claims. The findings indicated that climate change has a significant impact on the demand for travel insurance, especially during the prolonged rainy season in Hong Kong, when extreme weather events lead to an increased risk of cancellation or delay of travel plans. Meanwhile, the quantitative analysis results demonstrated a significant correlation between weather factors and flight status and insurance occurrence, which provided empirical evidence for risk assessment and premium pricing of worldwide travel insurance in Hong Kong.

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