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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 20, 2021 10:23 AM (EDT)
U.S. property/casualty (P/C) insurers reported returned premiums of over $12.9 billion in 2020 associated with reduced exposures stemming from the COVID-19 pandemic, according to an AM Best commentary.
AM Best reviewed the 2020 statutory statement and related footnote disclosures for more than 2,600 U.S. P/C insurers. In its Best’s Commentary, “Property/Casualty Insurers Return Nearly $13 Billion in Premiums as COVID-19 Reduces Exposure,” AM Best states that while line of business was not always disclosed, the most prevalent line was related to automobile coverage. Stay-at-home restrictions reduced the amount of travel, thereby reducing exposure for automobile insurers. Other lines of business substantially affected by COVID-19 include general liability, workers’ compensation, event cancellation and inland marine. Where stated, 15% appears to be the most common return of premium, with some returns as high as 35%, over the time period. Some insurers, while not returning premiums, allowed forbearance measures such as extended payment terms for premiums and suspended terminations for late or non-payments.
The commentary also includes a detailed listing of the insurers that returned premiums in 2020 as a result of the pandemic. Comparable amounts also are shown for the first six months of 2020 versus the full year.
To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=307791 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.