Insurers announce premium supports for motor customers in response to Covid-19 crisis
Issued Friday 24 April 2020. A number of Ireland’s leading motor insurers (Allianz, AXA, FBD, RSA & Zurich) today signed up to commitments on premium reliefs for motor customers, to reflect an expected lower volume of claims due to the travel restrictions imposed during Covid-19 crisis.
Moyagh Murdock, CEO, Insurance Ireland, said “We are now six weeks into the Covid19 restrictions on movement and it is clear that road usage levels have fallen significantly. While the duration of these restrictions is still uncertain and it is still too early to fully assess the financial impact on the motor insurance sector, but recognising the unique challenges in the Irish market, insurers have agreed to address the issue by signing up to a set of core principles.”
The following has been agreed by the insurers:
- Each insurer has a different mix of customers and different claims experience and they will each assess the impact on their customers and in turn pass on appropriate financial supports directly to their customers.
- The financial supports, such as refunds or discounts, applied by each insurance company will reflect their individual claims experience to date.
· If extended Covid19 restrictions on movement result in sustained lower road usage and claims frequency through the summer and beyond, insurers have agreed to further review the situation.
Given the different pricing models and different customer profile of each insurer’s book, the precise amounts will vary across the market. Each insurer will independently calculate the detail of discounts/rebates involved and communicate with it’s customers in the coming weeks.
Moyagh Murdock said ‘This is good news for Irish motor insurance customers and comes following the introduction of a number of other supportive customer measures from Irish insurers spanning motor, home, business and health insurance. Irish insurers understand that many customers are experiencing difficulties related to the Covid19 crisis and are keen to assist wherever they can.”