As more air travellers are buying insurance online, the average bid price for an insurance sales counter at Taiwan Taoyuan International Airport Terminal 2 has tumbled 18% to NT$2.6m (US$84,175) per month, from NT$3.2m six years ago when the last tender execise was held, Taoyuan International Airport Corp (TIAC) senior vice president Ms Hong Yu-fen has revealed.
“It seems that the insurers were not willing to pay as high a price as before, as more consumers are buying insurance online rather than at an airport,” she told Taipei Times.
The bidding process was completed in September, and the new six-year contracts took effect this month.
Cathay Life, although it would not say how much it bid, said that it sells an average of 300 policies per day, 25% of its total travel insurance sales. The other successful bidders were Shin Kong Life Insurance, Taiwan Life Insurance and Chubb Corp Taiwan. Chubb is a first-time winner for the space. A fifth insurer, Farglory Life Insurance, failed in its bid.
Cathay Life senior vice president Terry Tseng said that while younger travellers prefer to buy insurance online, a single trip at a time, families like to buy insurance at the airport to save time.
Chubb Corp Taiwan country president Edward Tseng said that this year was the first time his company had won a contract at Terminal 2, and that it hopes to reach more clients through its new sales site at the airport.