WASHINGTON, DC – january 22 : National Economic Council Director Brian Deese speaks during a White House news brief, conducted by White House Press Secretary Jen Psaki, at the James Brady Press Briefing Room of the White House January 22, 2021 in Washington, DC. Psaki and Deese discussed versatile topics including the economic crisis that was caused by the COVID-19 pandemic. ( Photo by Alex Wong/Getty Images ) NORTH CHARLESTON, SC – january 14 : ( L-R ) Neil Cavuto and Maria Bartiromo, moderators of the Fox Business Network Republican presidential debate speak to the consultation on stage at the North Charleston Coliseum and Performing Arts Center prior to the consider on January 14, 2016 in North Charleston, South Carolina. The sixth Republican debate is held in two parts, one main argument for the top seven candidates, and another for three other candidates lower in the current polls. ( Photo by Scott Olson/Getty Images )
With most of the country operating under stay-at-home orders, drivers are spending less time on the road – which means fewer accidents and policy claims .
now the crown 10 insurers, who together own 72 % of the market, have all announced programs to return more than $ 7.5 billion to their customers in approach weeks.
But some watchdog groups say insurers could – and should – be doing more. The industry is saving tens of billions of dollars during the pandemic, they say, even after subtracting the payments being made to policyholders .
“ It ’ s dear the industry is broadly participating in these credits, ” said Dan Karr, the CEO of ValChoice, a datum analytics company that acts as an policy diligence watchdog. “ however, all of these discounts, rebates and credits are still dimes on the dollar compared to how much profit Covid-19 is likely to deliver to car indemnity companies. ”
The circus tent 10 insurers collect annual premiums of $ 178 billion, according to the Insurance Information Institute. Claims data international relations and security network ’ thymine yet available for the weeks since the pandemic caused roads and highways to empty out – but given the historical datum for the relationship between accidents and dealings, it ’ s likely the measure being returned to policyholders will be entirely a fraction of what the insurers might save from reduced claims, said Karr .
The amounts being returned range from about 15 % to 25 % of premiums, for periods a shortstop as a month at Farmers Insurance Group of Companies to equally long as six months at Geico .
country grow, the diligence drawing card, announced Thursday night it would return 25 % of premiums for a period of 10 weeks, from March 20 through the end of May. That amounts to an estimated $ 2 billion in reduced premiums for customers. State Farm, a reciprocal indemnity company owned by its policyholders, refers to the payment as a dividend .
“ We insure more cars than anyone and we see from our claims natural process people are driving less, ” said State Farm CEO Michael L. Tipsord in a argument. “ This dividend is one of the ways we ’ ra working to help our customers during this unprecedented situation. ”
No. 2 Geico is giving back even more : a total of $ 2.5 billion through credits on six months of insurance coverage when current policyholders renew their policies or modern policyholders sign up .
Most of those granting relief to their clients are basing the payout on the premiums paid in the April and May period. Allstate ( ALL ), the fourth largest insurance company, which on Monday became the first to announce payments to its policyholders, is basing the payments on the the April and May period, and Progressive, USAA and Liberty Mutual all followed befit .
Most of the insurers besides announced other programs to help policyholders, including allowing them to defer premium payments and a moratorium on canceling policies for nonpayments .