These insurance polices generally earn a lot for the airlines.

However, the do attract adverse selection. Would a 20 year old student in great health benefit, probably not. What about a 90 year old, probbaly more.

The more clear generalization is trip delay insurance. Probably not helpful for the occasional flyer going from hnl to ogg, but great for me who likes to book evening flights out of NYC with tight connections on express aircraft.