Great Ideas from the Wrong People

I've been running around asking business people the following:

"Let's say that for $175 a month, you could buy 'Just In Case' (JIC) insurance for those times when you get into a jam due to flight problems, weather issues, lost luggage, etc.  A problem happens, you call an emergency 24hr number and they take care of whatever. Cancelled flight? No problem, they get you on another flight, route you around problems, etc. If necessary, they can send cars, boats, trains, and planes to get you, etc.  Lost luggage? No problem, clothes, toothbrush, etc, are all sent to wherever you are or are going."

You get the idea.  For the most part, the road warriors, executives, etc, that I've spoken to loved this idea. They would pay even more if they could pre-buy an emergency block of flight hours from NetJets, etc, again, just in case.

So, somewhere in here, is a good idea for a whole bunch of insurance actuaries to grind on when it comes to services, fees, exclusions, etc.

While suits are working on this great plan, Air Canada came up with a brilliant idea. If you, on a per flight basis, cough up some extra coin and something happens, you get front of the line treatment.  If there is a cancelled flight, fear not and, for sure, don't go stand in line with the common folk. Call this secret number and we'll get you a nice sandwich, a Danish perhaps, hotel if required and, of course, a seat on a plane to get you where you eventually want to end up.

Awesome service right? Line cut, get out hold time hell, secret pass.  The flying public, trade press, etc, are pounding on Air Canada for having people pay for service you'd expect the airline to offer in the case of service disruption.  If the airplane breaks and you are stuck overnight, Air Canada puts you up, gives you a meal voucher, etc, and they generally do that today.  If you pay for this new service, you will get these things faster and will probably get a chocolate on the pillow. Okay, maybe not real chocolate, but you get the point.

When I frame a JIC service to people, they love it.  When Air Canada wants to 'sell' you a JIC service, it appears to backfire.

All in who delivers the idea, I suppose, and that is good news for start-ups. 

Sometimes the big boys simply can't play in the sandbox.

Comments

[Jean-Francois Noel]

You honestly don't believe what AC is offering sounds like what you are describing. When AC is saying this, everyone thinks it's like the 2$ for a pillow. That they plan on not supporting uninsured customer soon.

As for a startup aren't you surprised by the lack of p2p insurance to follow in the steps of p2p lending? Maybe a p2p insurer could offer what you are talking about.

[rick segal]

Jean-Francois, I totally don't think AC is even in the ballpark. That was, actually my point. There probably is an opportunity in there. I don't believe a P2P insurance thing would work for many reasons but I'd listen to the pitch, that's for sure.

Thanks for stopping by.

>R<

[Steve]

The people such insurance would benefit most are typically able to pay for the additional help they require, so the case for insurance seems marginal.

I'd expect that the fancy service number for a Platinum or corporate AMEX could give the same results on a pay-as-you-go basis.

[rick segal]

Steve,
I looked into this actually. I checked with Amex and the travel guys will help with new tickets, etc, but it isn't really anything above normal. While I am sure there is a fee-based service that could be created, I'm interested in the model of a dedicated business here from an Insurance perspective as insurance companies make good money.

Thanks for stopping by.

>R<

[heri]

i disagree. see Apple and the univesral acclaims they get for each product.

it's matter of branding, Air Canada don't know how to introduce the service.

[Alex G]

Heri, not everyone is ready to gobble up what Steve Jobs, Billy G or Air Canada dishes out.

- Knock knock, it's Air Canada, time to pay your protection fee.
- Protection? From whom?
- Why, from us, of course!
- Uhm, screw you.
- Sorry sir, we sold your seat to someone else, you'll have to find a hotel for the night.

As for Apple, they're like your friendly local crack dealer. Just need to look good until everyone on the block is hooked. Hardware, software, iTunes, we got it all baby!

If you extend the parallel you might agree that many niche markets are created where opportunities can't be seized by the larger player creating the very need in point - unless it can be offset with marketing dollars - exactly for PR reasons.