U.S. auto insurers will return more than $10 billion to their
customers nationwide, according to an estimate released on April 11 by
the Insurance Information Institute (Triple-I).
We’ve listed many of the companies that are offering refunds in
a previous post. This week, several
other auto insurers have announced refunds or credits. This is not an exhaustive list, so be sure to check
with your insurer to see if they are offering refunds or credits. All premium and rate adjustments are subject to
regulatory approval.
Chubb‘s auto insurance clients will receive a credit reflecting a 35%
premium reduction for the months of April and May, with additional discounts
for subsequent months, as the situation warrants, upon renewal. Across Chubb’s
portfolio, the average credit is expected to be $110 per vehicle.
COUNTRY
Financial announced that every client with a personal auto insurance policy
as of April 1, 2020 will receive a 15% refund for two months of auto premium in
anticipation of a decrease in driving activity in April and May.
CSAA Insurance Group is giving a 20 percent refund
for two months of auto premiums, March and April 2020.
ERIE
has announced that lowering personal and commercial auto rates would be the
best option for providing additional relief to customers. The company estimates
the total rate reduction impact to be approximately $200 million throughout the
12 states and District of Columbia where ERIE operates.
Ohio Mutual
Insurance Group
is offering personal auto premium credits on more than 80,000 personal auto
policies for an estimated total of $6 million. Ohio Mutual is voluntarily
providing a 25% personal auto premium credit that applies to an 11-week period
(March 16 – May 31, 2020) for all policies in-force on May 31. Credits will be
automatically applied to customers’ first invoice after June 1. Those with a
balance less than the credit will receive a refund by check.
The Hanover Insurance
Group announced it has
created The Hanover CARES Refund, through which the company will return 15% of
April and May auto premiums to its eligible personal lines customers, providing
financial relief during the coronavirus pandemic.
MAPFRE Insurance announced its Staying Home Refund program,
which will return 15 percent of April and May premium to its voluntary personal
auto policyholders in Massachusetts, totaling over $30 million. On average,
most policyholders will receive a credit of approximately $40.00. A similar
credit will be provided to the company’s personal auto policyholders in its
other states of operation for the same time period.
Westfield
announced a 15 percent policy credit to their eligible personal auto insurance
customers for three months.
Supporting communities
Chubb has announced a support program designed to
help ease the financial burden of the COVID-19 pandemic on its small business
clients in the United States and provide direct support to healthcare workers
and other front-line responders.
Chubb’s U.S. small business clients
whose policies renew between April 1 and August 1, 2020 will receive an
automatic 25% reduction in the sales and payroll exposures used to calculate
their premium as well as a 15% reduction in premiums for their commercial auto
insurance. In addition, Chubb will purchase $1 million in gift cards from small
business clients around the country, which will be donated to healthcare
workers and other first responders on the front lines of the pandemic in their
communities.
Fundación MAPFRE, a global nonprofit foundation created by
MAPFRE, announced it will donate $2.3 million to support urgent medical and
community needs across Massachusetts, as the coronavirus continues to spread.
The funding is part of a global $38 million aid package by the foundation for
medical providers and communities around the world.
Hanover announced customer relief
measures and a commitment to contribute $500,000 to nonprofits in local
communities to address needs arising from the public health crisis.
State
Farm has donated $1 million
and partnered with Salesforce to provide one million masks and other protective
equipment to healthcare workers in areas of urgent need identified by FEMA
(Federal Emergency Management Agency). Since the start of COVID-19, State Farm
has provided about $5 million in neighborhood relief across the country.
Swiss Re Group pledged to donate CHF 5 million to support
the needs of people and communities affected by the COVID-19 pandemic around
the world. Through its non-profit grant foundation, the Swiss Re Foundation,
the funds will be distributed to organizations tackling the crisis,
particularly in developing countries.
The Westfield Insurance Foundationis
helping communities in Northeast Ohio and across the country by donating nearly
$1.5 million dollars to nonprofit partners focused on family stability and
disaster recovery. These dollars will help stabilize communities and help those
who need economic support.
U.S. auto insurers will return more than $10 billion to their
customers nationwide, according to an estimate released on April 11 by the Insurance
Information Institute (Triple-I).
“Insurers
are again fulfilling their role as economic first responders by providing
financial relief to customers when they need it most,” said Sean Kevelighan,
CEO, Triple-I. “If the rest of the nation’s private-passenger auto insurers are
as generous as the companies the Triple-I knows about, we project insurers will
be giving customer refunds, discounts, dividends, and credits totaling $10.5
billion.”
The
Triple-I’s $10.5 billion estimate is based on its analysis of 14 U.S. auto
insurers who announced this
week premium refunds, discounts, dividends, and credits
totaling $8.1 billion. These insurers cited reduced policyholder mileage
and the receipt of fewer claims amid the COVID-19 crisis as the reasons they
were able to make these decisions.
Given
there are hundreds of companies that sell private-passenger auto insurance in
the U.S., the Triple-I looked at the industry’s cumulative market share and
estimated an additional $2.4 billion in refunds, discounts, dividends and
credits were forthcoming. The Triple-I has updated its Fact Sheet, Insurers Offer
Forward-Looking Solutions For COVID-19 Recovery, to reflect the
latest steps taken by the nation’s auto insurers.
“These
are challenging financial times for millions of Americans, and the country’s auto
insurers are making it easier for their customers to get through this
extraordinary time in U.S. history,” Kevelighan stated.
The
Triple-I estimates the typical U.S. auto insurance customer spent $1,113 in
2019 to cover a single private-passenger vehicle.
Auto insurers are giving refunds to their customers as
people are driving less due to coronavirus shut-downs. No action is required by
customers to receive credit in most cases, but Sean Kevelighan, Triple-I CEO,
urged customer to reach out to their insurers. “We always recommend the
customer contact the insurer and explain their individual situations. Insurers
are always happy to look at individual situations and work with the customer,”
he said in a Weather
Channel interview.
Here are the refunds some of the major auto insurers
are offering:
Allstate customers will get “Shelter-In Place
Paybacks,” adding up to $600 million over the next two months. “This
is fair because less driving means fewer accidents,” Tom Wilson, the company’s chair,
president and chief executive officer said in a statement.
American Family will return approximately $200 million to its auto insurance customers.
Farmers auto customers will receive a 25 percent reduction in their April premiums. “We are committed to helping customers during this unprecedented time,” said Jeff Dailey, the company’s CEO. “As we continue receiving updated information in the coming weeks, we’ll assess additional ways to take care of our customers.”
The
Hanover Insurance Group will return 15% of April and May auto premiums to its eligible
personal lines customers. The company also announced additional customer relief
measures and a commitment to contribute $500,000 to nonprofits in local
communities to address needs arising from the public health crisis.
The
Hartford announced its COVID-19 Personal Auto Payback Plan, which will
provide customers with a 15 percent refund on their April and May personal auto
insurance premiums. Over the next two months, the company will distribute
approximately $50 million to its customers.
Liberty Mutual will return approximately $250 million to
customers. Personal auto insurance customers will receive a 15 percent refund
on two months of their auto premium.
MetLife
Auto & Home customers will
receive a 15% credit for April and May based on their monthly premiums. The
company is also extending coverage under all personal auto insurance programs
at no additional charge while customers are making deliveries in response to
the crisis, effective March 20, 2020, through May 1, 2020. Additionally,
MetLife Auto & Home is offering identity protection coverage to its
customers.
State Farm announced an up to a $2 billion dividend that will
go to its auto insurance customers. Customers do not need to take any action to
receive this dividend, which will appear as a credit on their auto policy. On
average, State Farm Mutual auto customers can expect to receive a credit of
about 25 percent of premium for the time period March 20 through May 31; exact
percentages will vary by state.
The
Travelers Companies is giving U.S. personal auto insurance customers a 15 percent
credit on their April and May premiums. Travelers will continue to assess the
program as more information comes to light about the impact of the COVID-19
crisis on the driving environment and auto claims.
USAA is set to return $520 million to its members for
driving less during the COVID-19 shelter-in-place orders. The company said in a
statement that the payment is a result of data showing members driving less
during the “Stay Home, Work Safe” orders across the country.
IICF’s Children’s Relief Fund
The Insurance Industry Charitable Foundation (IICF)
has launched a national industry-wide fundraising campaign to benefit
vulnerable children. Funds raised through the COVID-19 Crisis: IICF
Children’s Relief Fund will help support children at risk of food
insecurity, educational disruption, family homelessness and other circumstances
exacerbated by the crisis. To make a donation and support children in need,
please contribute here.
The Allstate Foundation
The
Allstate Foundation together with Allstate employees and agency
force members, will donate resources across the nation to support communities
during the COVID-19 crisis.
The Foundation is contributing $5 million to accelerate relief and
recovery for domestic violence victims, youth in need, first responders and
communities at large.
“It’s incredibly inspiring to see people finding ways to take care
of each other,” said Elizabeth Brady, Allstate chief marketing, customer and
communications officer and trustee of The Allstate Foundation. “For 68 years,
The Allstate Foundation has delivered on Allstate’s promise to serve as the
Good Hands – especially in a moment of need.”
The Nationwide Foundation
The Nationwide
Foundation is making $5 million in contributions to local and national
charities to support medical and economic response efforts.
“As communities experience impacts related to the pandemic,
many non-profit organizations stand on the front lines, providing basic
necessities, wellness services and support to those in need,” said Nationwide
CEO and Nationwide Foundation Chairman Kirt Walker. “Finances, staffs, programs and resources are
being stretched as these non-profits not only serve their communities but feel
the impact themselves. During these challenging times, we each have a
responsibility, when we can, to lift those around us.”
An article in Claims Journal: Anticipated
Coronavirus Claims Scenarios Across Major Coverage Lines discusses
the wide range of insurance lines in which claims could rise, whether as a direct result of the
pandemic or of social, institutional, and governmental reactions to it.
The Financial Times reports on two shareholder lawsuits
relating to coronavirus that have already been launched in the United States,
one against Norwegian Cruise Lines, the other against a pharmaceutical company
called Inovio.
An NBC6
(Miami) report highlights actions that some major
insurers are taking to provide relief to their customers who are facing
financial difficulties due to the coronavirus pandemic. Said Sean Kevelighan,
CEO of Triple-I, “In the insurance community, we refer to ourselves often as
financial first responders and you’re really starting to see that kick in right
now.” Some companies are allowing customers to delay payments without penalties
or initiate a personal payment plan. A few are offering relief in the form of
paybacks to customers.
Other recent articles related to coronavirus from a property and casualty insurance perspective:
Auto
A New York Daily News
article describes the rebates auto Insurers are offering to their customers due
to coronavirus-induced driving lull. Liberty Mutual, American Family and
Allstate are among the companies offering refunds.
A Winknews report
discusses the assistance available to customers during the coronavirus pandemic
and includes an anecdote from a policyholder who was told by his insurer that
he couldn’t get an extension. Triple-I’s Mark Friedlander says this customer’s experience
is not the norm.
Business Interruption
Triple-I CEO Sean Kevelighan was quoted in Washington
Examiner and Santa Rosa, Calif. Press
Democrat articles on business interruption coverage.
Artemis published this
interview with PCS’s Tom Johansmeyer on silent pandemic risk.
The Financial Times reported on the
growing controversy over how much companies can claim from their business
interruption insurance policies related to the coronavirus pandemic.
As local, state and federal agencies scramble to react to
the public health needs of COVID-19, cities and towns must also keep one eye on
the weather forecast and river levels, according to this
Chicago Tribune article.
Workers Compensation
The Minnesota Legislature passed a workers’ compensation
bill Tuesday to cover first responders, health care workers and daycare
workers. The legislation is effective April 8 and is in place until May 1. Minnesota to Ensure Workers Comp to Responders
With COVID-19
Triple-I’s Daily newsletter covered many of the preceding stories this morning. To subscribe to the Triple-I Daily contact daily@iii.org.
We’ve been following the initiatives launched by insurance companies to alleviate the impact of the coronavirus crisis (see Insurers Respond to COVID-19). Here are several more examples of insurers’ commitment to helping their agents, employees, customers, and the broader community weather the pandemic.
The
Hanover has
taken several steps to help ease the burden for customers, including:
Considering a covered premise as
“occupied” while mandatory closures are in effect
Extending rental car days if a
policyholder’s vehicle is in the shop and cannot be repaired or returned
Paying additional living expenses to
homeowners who are forced from their homes following a covered loss
Offering flexibility on bill payment
options for those experiencing financial hardship
A 60-day hold on cancellations and
non-renewals for non-payment
Permitting business use of hired,
non-owned autos for delivery purposes at no additional charge and extending
personal auto coverage to individuals delivering food, medicine, and other
essential goods at no additional charge
The company
is also investing in relief efforts,
including $500,000 to local non-profits to
provide pandemic-related assistance to people and organizations across the
country; donating critical medical supplies and masks to health professionals;
and collaborating with corporate teambuilding company Cheeriodicals to deliver
“cheer-up” gift packages to local hospitals to show appreciation for health care providers.
Liberty Mutual has created a $4
million fund offering low-threshold, immediate grants of up to $10,000 for 450
community partners – with priority given to groups providing healthcare or
serving the homeless, elderly, and other populations deemed at highest-risk.
Liberty Mutual employees continue to be able
to make online charitable donations that are supported further by company
gifts.
The company has also enabled employees to work
remotely and reports no impact to normal customer
service operations.
The MetLife Foundationannounced on March 31 that it is committing
$25 million to the global response to COVID-19 in support of communities
impacted by the pandemic.
The grant funding from MetLife Foundation will span all regions where MetLife
operates and address both short- and longer-term relief efforts.
“Supporting and protecting
people is at the core of who we are and what MetLife stands for – in our
business and in the Foundation’s giving,” said MetLife President and CEO Michel
Khalaf.
Initial grants will
support communities and people with urgent needs for food, healthcare,
childcare, and direct financial support.
As part of this
commitment, MetLife Foundation and other MetLife entities have already pledged
$4 million to relief efforts in Asia, EMEA, Latin America, and the United
States, including $1 million to U.S. food banks to help them deal with
increased demand for their services as a result of coronavirus.
State
Farm is donating
millions of
dollars to
relief efforts, including Feeding America, American Red Cross, and the Illinois
COVID-19 Response Fund. Additionally, the company has also donated hundreds of
masks and other supplies to local hospitals and teamed up with the Atlanta
Hawks to help provide meals to vulnerable populations and healthcare workers in
Atlanta.
State Farm has also transitioned most
employess to work from home arrangements and has set-up a matching-gift program
in which employees donations to qualified nonprofits can be matched by the
State Farm Foundation.
State Farm customers who are experiencing
financial hardships are encouraged to call their agents to discuss assistance
options.
Westfield Insuranceis providing billing
options for financial hardships and suspending all policyholder cancellations
until May 31, 2020, or as directed by each state. Extended payment plan may be offered to those
policyholders. As of March 20, 2020, late fees also will be waived through May
31, 2020, or as directed by each state.
Westfield will contribute nearly a million
dollars toward nonprofit partners, including the Akron Canton Foodbank,
Cleveland Foodbank, United Way of Cleveland, Feeding Medina County, and Feeding
America.
Westfield’s foundation is matching employee
donations to their local foodbank or United Way dollar for dollar up to $50. The
company is also working with agency partners across the country to distribute
Legacy of Caring grant dollars for them to donate to nonprofits in their
community who are challenged because of COVID-19.
As a regulatory/government solution, trade
groups representing insurers have voiced support for the
proposed COVID-19 Business and Employee Continuity and Recovery Fund. It would
be financed by the federal government and provide essential funds to impacted
employers and employees.
Tell us how your company is contributing to the
pandemic relief efforts: communications@iii.org.
Insurance companies are working to alleviate the impact of
the COVID-19 crisis by supporting their employees and distribution partners,
donating money to global relief efforts and easing the financial burden on
their customers.
Triple-I has published a fact sheet, Insurers Offer
Forward-Looking Solutions for COVID-19 Recovery, which
outlines how the industry is easing its customers’ financial burdens, working
with government to create a COVID-19 Recovery Fund, and making sure it has the
resources to pay future claims from events such as hurricanes, tornadoes, and
wildfires.
Here are a few examples of what individual companies are
doing:
Allstate
will automatically cover customers who
use their personal vehicles to deliver food, medicine and other goods for a
commercial purpose. Standard personal auto policies typically exclude such
coverage. This change will allow customers to serve those who depend on their
services and support.
Allstate also announced a special
payment plan to provide customers financial relief. The plan gives auto and homeowners
policyholders the choice to delay two consecutive premium payments with no
penalty. In addition, Allstate is pausing policy cancellations due to
nonpayment during the declared COVID-19 state of emergency. This includes
Allstate Business Insurance policies.
Ninety percent of Allstate’s global
workforce is working remotely. Allstate will continue to pay employees (full or
part time) who can’t work remotely and have shelter-in-place orders during
their normal work hours. Well-being services like telemedicine, prescription
home delivery, and emotional and financial support lines are available to
Allstate’s U.S. employees.
American
Family Insurance along
with the American Family Insurance Dreams Foundation, announced more than $4 million in support for
COVID-19 pandemic relief and other non-profit efforts. Additional support from
the Steve Stricker American Family Insurance Foundation is expected to push the
total support to more than $6.8 million.
“The pandemic
has left many struggling to meet basic needs while at the same time adapting to
a new and unsettling normal,” said Maggie Pascaly, American Family community
investment manager. “We want to help meet short-term needs of individuals,
families and communities, while also addressing longer-term effects.”
The company’s employees and agency owners can support local organizations of
their choice by using a 2:1 foundation match offered during a six-week time
period beginning March 31. The foundation will match donations totaling up to
$250,000, for a maximum additional investment of $500,000. Organizations that
provide pandemic relief will be suggested for consideration.
Chubbannounced that it is committing $10 million to
pandemic relief efforts globally. The support will go to people and
programs providing emergency frontline services and for assistance to the most
financially vulnerable members of the community who have been impacted the
hardest by the pandemic.
The company also announced that it will not conduct any layoffs of its employees while in the midst of the COVID-19 pandemic health crisis, and has added employee benefits such as additional sick days.
“We are
committed to supporting people, business and communities most impacted by this
global crisis,” said Evan G. Greenberg, chairman and chief executive officer.
“Our $10 million commitment will add to the urgent efforts required to meet the
immediate health and nutrition needs of those most affected. Concerning
our no-layoff pledge, we want our 33,000 employees around the globe to be
assured that their jobs are secure at this difficult time.”
Travelers has initiated a distribution support plan to
accelerate more than $100 million in commission payments to eligible
distribution partners.
“As so many are
facing a significant financial burden due to the COVID-19 pandemic, we want to
show our agent and broker partners, many of whom are small business owners, our
support at this challenging time,” said Alan Schnitzer, chairman and chief executive
officer of Travelers. “Independent agents and brokers not only provide
invaluable counsel and care to our customers but also play a critical role in
the U.S. economy, and we are committed to standing by them.”
Bob Rusbuldt, president
and chief executive officer of the Independent Insurance Agents & Brokers
of America, said: “Travelers has always been the premier supporter of
independent agents and brokers, and the Travelers Distribution Support Plan
takes that support to a whole new level. We want to thank Travelers for their
continued industry leadership.”
The commissions
being accelerated were accrued in the ordinary course of business during the
quarter ended March 31, 2020, and accordingly, this program will not have a
significant impact on the company’s results.
MAPFRE, an
insurance company based in Spain, is allocating 54 million euros to support
customers and suppliers. This is in addition to 5
million euros recently donated to accelerate COVID-19 research in Spain.
More than 90 percent of
MAPFRE’s 34,000 employees worldwide are working remotely to reduce the
risk of contagion and to guarantee service to customers, who in Spain are being
offered a free advisory service to learn how they can take advantage of the
support that is on offer.
Tell
us how your company is contributing to the pandemic relief efforts: communications@iii.org.
U.S. insurers are meeting the challenges faced by their customers, communities, and employees amid the COVID-19 crisis, according to a fact sheet released April 3 by the Insurance Information Institute (Triple-I).
“The nation’s insurers continue to work actively on immediate and forward-looking solutions that will assist its customers and communities in recovering from COVID-19,” said Sean Kevelighan, CEO, Triple-I.
The fact sheet, Insurers Offer Forward-Looking Solutions for COVID-19 Recovery, outlines how the industry is easing its customers’ financial burdens, working with government to create a COVID-19 Recovery Fund, and making sure it has the resources to pay future claims from events such as hurricanes, tornadoes, and wildfires.
Immediate Customer
Solutions: Insurers are offering payment relief and extending coverage to
customers who are in financial distress while at the same time keeping its employees
on the job to serve these same customers, the Triple-I notes.
Government-Backed
Solutions: Trade groups representing insurers have voiced support for the
proposed COVID-19 Business and Employee Continuity and Recovery Fund. It
would be financed by the federal government and provide essential funds to
impacted employers and employees.
Facing Challenges Head-On: Workers
compensation insurers in multiple states are covering the healthcare workers
and first responders who face exposure to COVID-19 while auto, home, and
business insurers are setting aside the resources needed to pay the claims
arising out of future natural disasters even as insurer investment portfolios
have faced their own headwinds. A Triple-I non-resident scholar predicted
yesterday the likelihood of an ‘above-normal’ Atlantic hurricane
season.
Insurers have also contributed financially to food
banks and organizations providing medical supplies.
Through this interactive online
session and its accompanying digital resources, GIS is stepping up in support
of insurers’ efforts to conduct internships remotely at a time when physical
workspaces are shuttered to facilitate social distancing.
The companion guidebook to this event, Virtual Internships A Guide for Employers, explains the tremendous value of remote internships and offers tactical guidance on how to rethink and rework internship programs to better suit today’s candidates for tomorrow’s workforce. The accompanying sample internship syllabus gives a practical framework for how to effectively and efficiently organize and administer remote internships.
GIS developed this campaign in response to disruption and
dislocation created by the Covid-19 pandemic. By retaining and enhancing
internship programs while college and corporate campuses are closed,
organizations can get a head start in:
Entering an expanded talent pool that’s
optimized to succeed
Finding candidates that can work independently,
face a wide range of challenges and “think on their feet”
Building increased flexibility into existing
programs to attract highly qualified candidates who otherwise would not be able
to participate
Reducing costs associated with on-site
internships
Positioning their brand and corporate values for
future success in on-campus recruitment
But perhaps most the most important
reason to do this: The 18-25 age cohort already learns, works, socializes and
lives primarily online. Teens and young adults are a workforce prepared for the
challenges of life during and after the COVID-19 crisis. Remote internships not
only help students stay focused on their goals; they offer insurers an
invaluable opportunity to adjust on the fly to the realities of our culture in
the 2020s and beyond.
Today’s students are ready for
this. Organizations like Gamma Iota Sigma are working to ensure that insurance
businesses and our industry are ready for them.
