Many insurers have started taking action to address policyholder, producer and employee concerns
While the issue of business interruption insurance and the Coronavirus Pandemic continues to evolve, some insurers have begun to offer their own types of solutions to help their policyholder, producer, and employees during the pandemic. The following are a few of the announcements that have been made so far this week:
American Family pledges to return more than $200 million to its auto insurance customers
For example, this week the CEO of American Family Insurance, which is affiliated with Main Street Insurance, announced that it would be returning premium to American Family auto customers during the COVID-19 pandemic. In an April 6, 2020 letter entitled “Our Herman Wittwer moment”, CEO Jack Salzwedel reflects on how premium relief for customers is part of American Family’s heritage. Referencing the founder of his company, Herman Wittwer, and what he would do if here now, Mr. Salzwedel wrote the following:
“I believe this outbreak will define a generation. And, how we treat our customers, communities and each other – right now – will have a lasting impact on who we are for the next 92 years – and beyond.
This is our Herman Wittwer moment.
So today, we announced plans to return approximately $200 million to American Family Insurance auto insurance customers. We will send one-time payments of $50 per vehicle to customers who have American Family-brand personal lines auto policies. (You can read more about this on our website.)
This resonates with me because of American Family’s values, especially trustworthiness: We operate with integrity in all that we do. I believe this further illustrates that integrity … and why we are the most trusted and valued customer-driven insurance company.
While these are uncertain times, American Family remains financially strong. That strength is something our customers have counted on ever since Herman realized his dream so long ago. It’s why our customers know they can count on us to deliver on our promise when they need us most – and to do right by them.
I believe we’re providing meaningful and direct help – now – with this premium relief, and through the more than $6.8 million COVID-19 pandemic relief announced last week, from our entire group of companies and foundations.
These actions reflect our values. They further demonstrate American Family’s support for our customers and communities. They’re also a real-time example of how we’re innovating and disrupting the industry – something Herman was pretty good at, too. I want our actions to set the tone in our industry. I hope other insurers give back in similar ways.
It’s the right thing to do. And, I know Herman would approve.”
For those who would like read Mr. Salzwedel’s letter in its entirey, it can be viewed on his Linkedin profile here.
Allstate follows suit with its Shelter-In-Place Payback Plan
In response to the decline in car use and accidents during the COVID-19 public health crisis, Allstate announced this week its new Shelter-in-Place Payback program, which will return approximately $600 million to its auto insurance customers in April and May. According to the terms of the program, the insurer will be depositing money back into the bank or credit card an insured has used for payment. Alternatively, the company will be applying credits to accounts depending on a customer’s preference.
In addition to the payback of auto insurance premium, Allstate also is offering free identity protection, payment relief and extended coverage. Any U.S resident who signs up for Allstate’s Identity Protection Plan for free in April or May of this year, will receive it free for the remainder of the year, whether they are an Allstate insured or not.
Finally, Allstate says that it is also extending coverage to customers who are using their personal vehicles to deliver food, medicine, and other goods for a commercial purposed during the pandemic. Normally, standard personal auto policies typically exclude such coverage, however, the insurer is providing this additional protection to policies in all states during the time the COVID-19 emergency order is in place in the insured’s state.
Chubb announces $10 Million To Pandemic Effort And No COVID-19 layoffs
Global insurer Chubb also announced this week that it would be donating $10 million to pandemic relief efforts across the globe. In addition Chairman and CEO Evan G. Greenberg has vowed that the there will be no layoffs at the company as a result of the public health crisis:
“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. Given all of the uncertainty that exists in the world, employment and benefits are one thing my colleagues will not have to be concerned about at this time.”
Travelers pledges $5 million to COVID-19 relief efforts and billing relief
In addition to announcing its new innovative “Distribution Support Plan” for its agent and broker partners, Travelers also has pledged $5 million to aid families and communities affected by the COVID-19 pandemic in North America, the U.K. and the republic of Ireland. The company also announced billing relief for its insureds, meaning a suspension of cancellations and nonrenewals due to nonpayment through May 15, 2020. This means no interest, late fees or penalties during this time period.
“Our customers and communities are facing an unprecedented challenge,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “Helping in a crisis is what we do, and the commitments we’re making today to take care of the communities in which we live and work are an extension of the fundamental role we play.”
Schnitzer added, “In addition to charitable contributions, we are taking a number of steps to ensure the well-being of our customers and employees. We are offering billing relief to address the financial distress that many are facing as a result of the pandemic, and we have adjusted the claims inspection process to rely more heavily on our extensive inventory of state-of-the-art digital and virtual tools, with extra precautions in place if an in-person inspection is needed. We are also providing the equipment, supplies and resources our employees need to continue working safely and seamlessly from their homes. And, we have partnered with our food services vendor to create a program to make essential groceries and pre-made meals available for employees in the Hartford area so they can more easily adhere to social distancing advice.
“Employees across the organization have stepped up in amazing ways, including our business continuity, technology, operations, claim and worksite-essential teams, which have led heroic efforts to ensure that we can continue to deliver the exceptional, uninterrupted service that our customers, agents and brokers have come to expect. I am grateful to every one of our 30,000 colleagues, all of whom have demonstrated extraordinary commitment, ingenuity and flexibility.
“Offering billing relief to our impacted customers, continuing to employ members of the extended Travelers family and supporting our neighbors will bring us one step closer to rebuilding our communities and emerging from this crisis stronger than ever.”
Texas Mutual distributing $330 million in dividends early
In response to the COVID-19 pandemic, Texas Mutual also announced that it would begin distributing approximately $330 million in dividends to over 57,000 Texas businesses two months earlier than planned. The workers’ compensation company’s board approved the measure “…to help support our policyholders during this critical time.”
