AIG debuts insurance by the hour coverage, the first in Canada

Published: March 29, 2018

Updated: July 24, 2018

Author: Luke Jones

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AIG has taken an innovative approach and potentially opened the door for a new kind of insurance in Canada. The company has launched a first of its kind coverage in the country through its Travel Guard Group Canada subsidiary.

Through a new smartphone application, the company is offering travel insurance on-demand to its customers. By using the app, consumers are able to purchase coverage in time-denoted chunks, basically through hourly insurance protection. The pay-for-what-you-need approach allows customers to save money on their travel insurance.

The application uses GPS technology to assess where a traveler is located and to provide a coverage quote. Customers can see the level of coverage they need and purchase it through Travel Guard Group Canada. The app tracks the number of hours the user needed insurance and charges based on the timeframe.

Travel Guard Group Canada says the app brings more flexibility to customers, while also offering more control over what coverage people choose. Additionally, the service is “a departure from the traditional travel insurance options, including single trip or annual plans.”

“We’re always looking for new ways to keep pace with our travellers and by offering this innovative, fast and easy way to purchase travel insurance, our travellers can get more convenient coverage for when and how they want to use it,” said AIG Canada chief operating officer Marc Lipman.

The application supports coverage for up to 90 days of travel and the geolocating tools are accurate enough to know when a customer has arrived at an airport or crossed a border. When this happens, the app send a notification to the user asking if they would like to begin coverage.

AIG has launched the app in all provinces aside from Quebec.