Most motor insurers agree to refunds amid virus crisis (Ireland)
A number of insurers here have agreed to discount premiums or give refunds to motor customers in recognition of an expected reduction in the volume of claims during the Covid-19 emergency.
It follows pressure from the Minister for Finance, the public, businesses and insurance re-sellers for action on the matter.
Insurance Ireland said the insurers recognise that reductions in the amount of road use means the level of claims being submitted will be lower.
"We are now six weeks into the Covid-19 restrictions on movement and it is clear that road usage levels have fallen significantly," said Moyagh Murdock, CEO of Insurance Ireland.
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Most of the leading motor insurers including Allianz, AXA, FBD, RSA and Zurich have signed up to the principles, Insurance Ireland said.
However, Aviva and Liberty are not listed as participants at the moment.
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Minister for Finance Paschal Donohoe acknowledged the response from some insurance companies, and called on each insurer to outline the scale of likely premium refunds.
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"Obviously it is for each insurer to look at its own situation and customer base, but I stress the importance for them to take a longer-term perspective and be generous with their customers at this time reflecting the recent profitability of the motor insurance market."
Welcoming the move, Brokers Ireland said there is a compelling logic, given that there is a much reduced likelihood of claims.
Cathie Shannon, Director of General Insurance Services, said insurance premiums are based on the level of risk posed and the anticipated level of claims, with the cost of claims being the most significant cost incurred by motor insurers.
"Since the Covid-19 restrictions we are told that traffic volumes have decreased by two-thirds. There is, therefore, a deeply compelling logic for such measures by insurance companies," she said.
Most motor insurers agree to refunds amid virus crisis