Study On The Problems Of Flight Delay Insurance

The rapid development of China's economy and aviation industry provide the opportunity for flight delay insurance to jump.From 2010 to 2017,flight delay insurance has become a heavily promoting product of the insurance company from an unassuming type of insurance.In the summer of 2017,flight delay has been exacerbating by the severe weather.Therefore,the insurance companies have to stop selling flight delay insurance to reduce the loss.The event of stopping flight delay insurance sale is a sign of changing from flourish to decadence,also reveals to the public the chaos in the flight delay insurance market and the problems from product design to market operation.Whether a product can be accepted by the market or have a great development depends largely on the product's operational strategy and method.In the short term,turning insurance products into a game of chance,increasing commission and blindly catering to market can quickly expand the market and scale.But in the long run,the false prosperity created by violating of economic laws is doomed fell through.The essence of vitality is product design and pricing according with market demand.Product pricing not really reflecting the real risk of insurance,product design not controlling risks effectively,avoiding adverse selection problems and product portfolio not meeting customer's demand effectively are the basic reasons for the stopping and restricting the development of flight delay insurance.Scientific designing products,standardizing market operation and strict supervision are the three magic weapons to solve the problems of flight delay insurance.Improving the accuracy and fairness of product pricing is the cornerstone of the benign development.Regulating market behavior,avoiding excessive and malicious competition are a strong guarantee for the benign development.Strengthening the supervision and enforcement are a powerful external grasp of the benign development.