U.S. property and casualty insurers returned nearly $ 13 billion in premiums to policyholders in 2020 to reflect reduced exposures from the COVID-19 pandemic.
Auto insurers returned premiums in the greatest number, although the civil liability, workers’ compensation, event cancellation and domestic marine sectors all reported premium returns due to reductions in risk exposure from the pandemic, AM Best said in a new analysis.
Much of the return totals occurred in the first six months of 2020, when initial pandemic lockdowns led to driving down and overall trade in the highest volume, according to the report.
The most common premium yield was 15%, although the numbers sometimes reach 35% in some cases, according to the commentary.
Nearly 400 insurers have reported specific premium refund amounts linked to the COVID-19 outbreak, AM Best said. This number comes from more than 2,600 statutory statements and related information reviewed by the rating agency for more than 2,600 P&C insurers in the United States.
Some of the biggest bonus return totals compiled by AM Best were:
- Berkshire Hathaway Insurance Group, $ 3.4 billion
- Allstate, $ 1 billion
- Progressive Insurance Group, $ 1 billion
- USAA Group, $ 1 billion
- American Family Group, $ 502 million
- Liberty Mutual, $ 305 million
- Travelers Group, $ 225.6 million
- Nationally, $ 143.6 million
- PC Kemper companies, $ 99.8 million
- Great American P / C Insurance Group $ 78 million
- Hartford Insurance Group, $ 75.8 million
Source: AM Best, P&C insurers return nearly $ 413 billion in premiums as COVID-19 reduces exposure
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