[ghaff]

I honestly have no idea how those dynamics work. At some point, the airline presumably pays, travel insurance does, or a combination of the two. At some point if it's just a bunch of old travel stuff, I guess I can see a customer shrugging, collecting the money, and dropping the whole thing.

[notahacker]

I'm now imagining a situation in which a customer at the point of successfully making an insurance claim to pay for the nice new clothes they've bought themselves is infuriated to receive an email informing them that Kansai airport has found their luggage and will endeavour to deliver it to a hotel anywhere within the world within two days...

[ghaff]

The customer has presumably been paid. If they're smart there's nothing or very little in the suitcase that can't just be replaced. The airline/insurance has paid out and just wants the claim to go away.

As a side-note, had a small kitchen fire with smoke damage last year and it was pretty obvious that, even though they were reasonably generous, the insurance adjuster, cleaning people, movers, etc. just wanted the whole process to go away so they could move on. They objected a bit to a few claims but, for the most part, spending $50K was nothing compared to the claims being reopened.