Product pricing key

Australian financial comparison website Mozo has compared the price of travel insurance policies bought through different distribution channels, which has highlighted the wide variation in product pricing. Stefan Mohamed has more information Mozo performed a series of ‘mystery shopper’ purchases for three very different holidays â€" a family trip to the US, a backpacker trailing around Thailand and Europe, and a couple visiting Europe. The distribution channels the company sourced included airlines â€" Qantas, Virgin Australia, Flight Centre, Jetset Travel and Harvey World Travel â€" as well as DU Insure, 1Cover, and Fast Cover. The criteria set for the policies were that cover should cost less than AU$100, have unlimited medical coverage, and have what the company considered to be the minimum level of personal possessions and cancellation cover that would be appropriate to each holiday scenario. The price difference between policies was significant. For instance, for the family of four travellers to the US, Qantas would have charged $756, while Fast Cover would have charged $177. Kirsty Lamont, marketing and communications director of Mozo, said: “One of the reasons is the huge commission airlines can earn â€" Qantas gets up to 53-per-cent commission on the travel insurance policies it sells, according to the fine print on its own website.” ShareThis Powered By iWebRSS.co.cc