Response to coronavirus outbreak - Insurance sector - Lansons
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Insurance sector response to coronavirus outbreak As at 6th April 2020
Summary and backdrop [w/c 06.04] As noted last week, the level of media and regulatory scrutiny of the insurance sector remains high. Over the last week, there has been a significant number of updates from the FCA and PRA, including Dear CEO letters issued to firms. Of note was the FCA’s decision to delay the release of its market study into pricing practices to allow firms to focus on their response to the coronavirus crisis. It also updated its guidance on its expectations of insurers regarding the crisis and made clear it is willing to intervene if necessary. Following mounting pressure on the banks to cut their dividend pay outs, the PRA took a softer line with insurers. PRA chief, Sam Woods wrote to firms and said they should “satisfy themselves that each distribution is prudent and consistent with their risk appetite”. A few days later L&G announced it was to press ahead with a £750m dividend payment to shareholders, despite the BoE urging firms to reconsider pay outs and a call from the European insurance regulator, Eiopa, for firms to stop dividends, bonuses and share buybacks during the crisis. The announcement was widely covered in the business pages, with journalists questioning L&G’s decision at a time when many people are unable to work or facing hits to their income and following a day of falling share prices for insurance firms, including L&G. Almost all headlines led with L&G ‘defy the BoE’, with some suggesting it could ‘spark a showdown’ with regulators, while the FT focused on how European insurers were coping with mixed messages on the issue of dividends, as national regulators take different stances. The media continued to focus on how insurers are supporting customers, with readers’ letters, regulatory updates and analysis from Which? all peaking media interest. The latter was covered by several publications and focused on analysis that found almost half of insurance providers had ‘pulled’ travel insurance from sale because of the coronavirus crisis. It also raised concerns that some insurers are potentially treating customers affected by coronavirus disruption unfairly and believes the sudden number of changes to policies and ‘inconsistent’ responses risks leaving customers confused and at risk of travelling with no protection.
Summary and backdrop The sector’s response to customers was scrutinised more closely in the FT’s Lombard column. Kate Burgess accused firms of failing to support customers and ‘weasel out’ of paying claims. She wrote, by turning a ‘deaf ear’ to the reputation risk, she believes customers will turn their back on insurance or self- insure; the Government will intervene and force insurers to act or businesses left without support could launch class actions. The ABI, who has been extremely proactive with the media, was quick to respond with a letter from Director-general, Huw Evans. In his letter Evans addressed some of the issues raised and argued it presents ‘a one-sided’ picture of the insurance industry’s response to Covid-19. Clearly, with claims set to rise and increasing numbers of customers likely to be financially impacted by the pandemic, pressure will mount on insurers to act in a meaningful way to support customers, while the FCA has already made clear it will be forced to act if it deems the industry is slow to respond and the media will be quick to lead any attack. On a lighter note, there has been some media interest in receiving comment and data for stories that provide advice and tips for consumers. The Mail and Express both wrote pieces over the weekend addressing concerns around how to protect empty properties and how to look after cars during the crisis. In general, the media has continued to monitor businesses responses to the crisis, with media citing the good and the not so good. Gillian Tett in the FT’s Moral Money cites her Saints and Sinners and executive pay has been widely covered as a topic across all news. Overall, providers made few announcements this week, with most continuing to focus communications efforts via their owned channels to reach and engage with customers. lansons.com 3
Response from media influencers: [w/c 06.04] Travel insurance was the subject of much coverage during the week following a report by Which? - “Coronavirus: what it means for your travel insurance” – Which? analysed the number of insurers that had changed their policies or had stopped offering insurance to new customers. Some journalists also took to Twitter to share their thoughts and concerns, with Oliver Gill from the Telegraph saying the impact of the crisis could results in lower car insurance premiums next year. In general, commentators are starting to examine the impact of the pandemic on the future of the industry more closely – namely on its pricing structures and its reputation. Media commentators: [04.04] Oliver Gill, Chief City Correspondent, Daily Telegraph, said on Twitter: “Here’s a thought: fewer cars on the road will surely mean fewer accidents and a sharp fall in #insurance payouts. That should mean dramatically lower insurance premiums next year - if what the industry claimed all along is true” [02.04] Gareth Shaw, Head of Money at Which?, in a Which? report widely covered by national publications: “Coronavirus has had a huge impact on the travel insurance market, with dozens of providers amending policies or pulling them altogether. This is creating confusion and uncertainty for consumers, who may feel they simply can not make plans for future trips in the circumstances. The government, insurers and the travel industry must work together to tackle the huge challenge posed by coronavirus, to ensure people feel confident enough to travel in the knowledge that they will be covered.” [02.04] Nigel Barton, Insurtech UK chairman and Wrisk executive chairman, said in Insurance Age: “While we’re seeing unprecedented support from the state in this time, we need to see some signals of unprecedented support from the incumbents for the small businesses. The UK insurance market will be stronger as a global insurance sector for having this innovation community. We’ll be stronger together.” lansons.com 4
Response from media influencers: [31.03] Kate Burgess, Lombard editor said in the FT, “We are all in it together, according to the PM. Not the insurers though. That was clear this month when the Association of British Insurers slapped down hopes that small firms were covered for the interruption caused by the coronavirus pandemic… It is not as if insurers are weak. They have plenty of capital. Solvency ratios are high. The industry boasts of its ability to withstand once-in-200-year events. There is no mention of freezing or cutting dividend payments, unlike in many other sectors.” [w/c 30.03] The media continues to follow the situation closely, but the frequency and volume of articles has dropped compared to the previous couple of weeks. Scrutiny remains, and as mentioned, there is likely to be a number of triggers that will continue to peak media interest and prompt comment from media influencers. Travel insurance continues to be a focus with the media as more customers who are claiming come forward as case studies. Guardian journalist Anna Tims, this week has placed heavy scrutiny on insurers looking to find loopholes in their policies via small print. Media influencers: [26/03] Lee Griffin, CEO of Go Compare warned against short term policy alterations as these can add up in the long run. “The continuously changing situation has left many people confused and worried about how or whether they can use their cars and how working from home will impact on their home insurance. Likewise, policies of employees who are required to drive to work will not be affected, nor will the insurance of people using their own car to deliver medicines or groceries to support others. If you’re about to renew cover or buy a policy for the first time it is important to arrange cover suitable for your normal life – rather than the current restrictions. Otherwise, you will probably have to pay an increased premium and amendment fee for altering your insurance when life gets back to normal.” lansons.com 5
Response from media influencers: [23.03] In terms of media; online personalities and personal finance commentators Caitlin Moran from the Times, Will Kirkman from This is Money and Simon Gompertz from the BBC all took to Twitter to initially to question the industry wide decision to temporarily suspend the sale of travel insurance for new customers. [12.03] Gareth Shaw, head of money at Which? said : “The government, insurers and the travel industry must immediately tackle the huge challenge provided by coronavirus, as the industry depends on people having the confidence that they can travel with the knowledge that they will be covered.” [17.03] Martin Lewis, founder of MoneySavingExpert has noted the difficulty to keep his readers properly informed of changing insurance, banking, regulatory and governmental policies in this challenging period. MSE originally published a guide tracking the travel insurance developments yet removed it due to the need for constant updates and monitoring. “We want banks and firms to show people patience, compassion and forbearance. Yet equally, when our entire economy and way of life is under threat, we must try to return it. Many firms are struggling to cope, change policies, or even just get their staff settled in new ways to work - so be patient. And for those who can afford it, even if you've a right to a full refund for a ticket, travel or more, if the firm is in a struggling sector and asks if you'll take vouchers instead, it's worth considering.” lansons.com 6
National media changes
[w/c 06.04]
► Reach, the publisher of the Daily Mirror, Daily Express and the Daily Star,
as well as hundreds of regional titles including the Manchester Evening
News, the Scottish Daily Record and the celebrity magazine OK! is to
furlough almost 1,000 employees, and its management, including the
senior editorial team, will have pay slashed by a fifth.
► The Evening Standard announced that they would be furloughing a
sector of their staff.
► JPI Media – the publisher of the Scotsman and Yorkshire Post – has
announced it’s furloughing staff and cutting pay for journalists to 'control
costs' during pandemic.
► City AM, who last week cut their print edition, announced that yesterday
would be the last day of their digital edition and they will now only be
posting on cityam.com. This has also led to staff being furloughed.
► The Evening Standard announced it will be furloughing a sector of staff
at the newspaper due to the coronavirus outbreak. Editor George
Osborne said the publication is facing a ‘very serious business problem’
and ‘we are trying to keep people in work and the newspaper alive’.
► Newspaper publishers warn they face losing £50m because of 'blocklists'
as advertisers stop their brands appearing next to coronavirus articles.
► PA Media, said a quarter of staff would be furloughed or placed on
unpaid leave due to the media group’s syndicated coverage being
severely disrupted due to coronavirus. Their executives will also be taking
a 30% pay cut with further measures being considered to mitigate the
financial impact.
► The consumer magazine and digital publisher, TI Media, has said that
magazine print is down, and online circulation is up due to coronavirus,
however they’re continuing to print the magazines for the time being.
► BBC News was due to suspend 450 as part of a budget cutting and
restructuring effort – but has postponed the job cuts to ensure Covid-19
coverage over the coming weeks.
► Weekly free magazine Stylist has gone online only for the duration of
lockdown, while weekly events listing magazine TimeOut has temporarily
rebranded itself as Time In, has stopped printing its free editions and is
launching an e-version alongside its digital output.
lansons.com 7Association of British Insurers’ response:
The ABI has provided regular comment on multiple issues as the situation
escalates. It has suggested that insurers expect to pay out at least £275 million
to travellers from coronavirus. The insurance industry has been heavily
criticised by the media recently for not doing enough to support the national
effort by closing ‘coronavirus loopholes’.
[w/c 06.04] Huw Evans and the ABI have continued to respond to criticism
and media and regulatory requests, and have stated that they are “ready to
talk about how it can be an effective partner in building more widespread
protection against pandemics than we have seen with Covid-19.” The ABI has
taken a highly proactive response to media and is quick to respond to any
articles it deems to be unfair and unhelpful to the industry. The most notable
example this week being Huw Evans’ letter to the FT in response to a Lombard
column.
Following Kate Burgess’s Lombard column “Insurance groups turn a deaf ear
to reputation risk at their peril” (April 1). Huw Evans wrote a letter in response
which has been published in the FT. He outlines the amount of claims the
insurance industry is expected to pay out as well as highlights that, insurers
cannot pay out for claims where customers have not paid for the cover; this is
a shortcut to insolvency. “We do, however, have to build a better future
solution to ensure more widespread business insurance cover for pandemics.”
FT
Below is a roundup of key announcements and policy updates:
[04.04] Pet Insurance
► Pet insurance members will be offering enhanced help and support
through a number of pledges to customers who may understandably be
concerned about the health of their pet during the Coronavirus
outbreak.
► The commitments include insurers taking a flexible approach on policy
terms and conditions, such as any requirement for pets to have routine
vaccinations, as many vets may only be open for emergency treatment.
lansons.com 8Association of British Insurers’ response:
[03.04] Travel Insurance
► Most travel insurance policies already automatically extend so that
people can continue to be covered against the risk of emergency
medical treatment when they are stuck abroad due to ongoing travel
restrictions.
► Travel insurance extensions have a limit of up to 30 days, however, given
the exceptional circumstances leading ABI members will look to extend
this protection to cover the risk of emergency medical treatment for up
to a minimum of 60 days, provided customers are making every effort to
return home.
► The ABI welcome the Government’s announcement to assist with
repatriation given the challenges that many people stuck abroad are
facing.
[24.03] Motor and Home insurance
► The ABI has pledged to ensure customers are support through five
commitments.
► Support those who need to make a claim
► Support those working from home
► Support those who can’t work from home
► Support those who use their cars to support their communities
► Support our key workers (NHS)
[24.03] Business insurance
► The ABI outlined that the majority of standard business insurance policies
will not include cover against “local closure due to infectious disease”.
They encouraged business owners to check their policy to confirm the
type of protection they will receive.
► The ABI later updated its response after the Prime Minister and the
Chancellor advised businesses to close, stating that the government’s
advice could certainly help SME owners make a claim, provided they
purchased the correct cover.
lansons.com 9Association of British Insurers’ updates:
[24.04] Private Hospitals and the NHS
► James Dalton, Director of General Insurance Policy, Association of British
Insurers, said that the private health sector will assist the NHS any way it
can via offering virtual online health services to free beds in private
hospitals and ease the pressure.
► He urged private medical insurance holders to speak to their health
insurer for more information.
► [27.03] The Chair of the Treasury Select Committee Mel Stride MP has
written to the ABI regarding the industry response to the Coronavirus
outbreak. In response to the letter, an ABI spokesperson has said: “We
are addressing the questions raised and will be responding to the
Committee. The insurance industry recognises this is a very difficult and
worrying time, and insurers are doing all it can to help and support
customers.” Read the full ABI response here.
► [26.03] Car insurance companies signed up under the ABI will be required
to support members during the crisis. This will see insurers required to
waive any requirements to extend cover for those who need to travel to
important jobs to transport goods around the nation. Road users will not
be impacted by volunteering under the new ABI agreements with
insurers unable to invalidate an agreement for helping those in
need. Daily Express.
► [25.03] The government has granted car owners a six-month exemption
from MOT testing. However, it won't come in until 30th March meaning
vehicles due a MOT before then must still take it. Regarding insurance
implications, the DfT were keen to provide some assurance to those
affected from next Monday, as well as until then. “If you cannot get an
MOT before it's due and before the exemptions come into force, insurers
will take a pragmatic approach and not penalise you for something out
of your control”. ABI
lansons.com 10Regulatory update - FCA and PRA
The ABI agreed with the FCA’s guidance on clarity and ensured it is working
with customers to support their needs throughout the COVID-19 crisis. The FCA
has continued to keep the ABI updated with any views it has on the industry’s
response to date.
► [03.04] The ABI took part in the weekly FCA roundtable conference call
for trade associations, chaired by Andrew Whyte, Director of FCA
Communications. The session provided an opportunity for discussion on
some of the most pressing and frequently encountered coronavirus issues
across the industry. The ABI has stated it will continue to raise members’
concerns though our regulatory channels.
► [03.04] The FCA has confirmed that all premium finance products are in
scope of the proposal on financial relief for customers impacted by
coronavirus. Therefore, the FCA expects the proposal to cover insurance
products sold through finance too.
► [03.04] Joint FCA-PRA statement on Senior Manager Certification Regime
(SM&CR) and coronavirus (Covid-19) expectation for dual-regulated
firms: This statement recognises firms affected by coronavirus will need to
keep their governance arrangements under review and have made
specific provisions for firms in these circumstances. It also provides an
update on expectations around submitting relevant re-submitting
statement of responsibilities, updating PRA and FCA on any temporary
allocation of Prescribed Responsibilities to unapproved individuals acting
up as SMFs under the 12-week rule, allocating responsibility for
coordinating firms’ responses to coronavirus among SMFs, furloughing
senior management functions and certification requirements.
► [02.04] In line with its announcement of 17 March 2020, stating that some
FCA activity and publications will be delayed to allow firms to focus on
their response to coronavirus, work on General Insurance Pricing
Practices will also be delayed. No date was provided but the FCA will
provide an update at an appropriate point.
► [31.03] In a letter to insurers PRA chief, Sam Woods wrote they should
“satisfy themselves that each distribution is prudent and consistent with
their risk appetite”.
lansons.com 11Individual insurance company
responses
Overview:
Aviva has halted all single-trip, direct travel insurance for new customers
travelling to Italy “to reflect the current risks posed by coronavirus”. Customers
also buying cover for trips to other destinations will no longer be able to select
its “travel disruption” or “airspace closure” add-ons, Aviva said. They have
undertaken a number of CSR initiatives in both the UK and Canada, sharing
them on social.
[02.04] Aviva have donated £10 million to the British Red Cross for their relief
efforts supporting coronavirus patients.
[30.03] The ABI estimated that the industry cost for travel claims will be £275m
- and after conducting a report on COVID-19’s impact on Aviva, financial firm
Jefferies implied that Aviva has an 11% share.
[30.03] It has updated its motor and breakdown policies to ensure any
volunteers are covered. NHS staff now receive free breakdown cover and
Aviva are exploring accepting claims without GP reports to ease NHS
pressures.
Media sentiment to these new measures has been positive.
Initial coverage has included: BBC news, The Telegraph, The Guardian and
The Times, Cision
Website:
Aviva updated its travel insurance page with an in-depth Q&A. It is also
requesting that existing customers only call them if they wish to discuss a trip
planned for the next seven days to reduce waiting times. Their online
statement has been quoted in the media. Aviva encourage that non-
emergency car and home claims register online.
Social media:
► [02.04] Aviva have tweeted about their participation in the
#ClapForCarers NHS initiative.
► [31.03] Aviva have warned customers to watch out for coronavirus
financial scams, which they’ve seen a spike in claims for. They have
published and posted a guide to help customers be more vigilant.
lansons.com 12Individual insurance company responses Social media: ► [30.03]: Aviva shared their updated motor policy to reassure NHS, volunteers or key workers of the policy changes supporting them. Any BAU content has now stopped and content is focused on COVID-19. ► [23.03]: Used to reassure customers and respond to any complaints or questions. As expected, phone and email lines are particularly busy and this was reiterated on social. Extended media: ► [02.04] The York Press: Aviva donates £10 million to Red Cross to help in coronavirus relief effort ► [30.03] Insurance Times: Aviva’s motor margins could be ‘significantly higher’ due to coronavirus quarantine says Jefferies ► [28.03] FM104: Aviva Stadium Lights Up For HSE Staff ► [27.03] COVER: Aviva to 'explore alternative routes' to pay claims without GPRs ► [27.03] Insurance Business Mag: Aviva unveils free coverage for NHS workers lansons.com 13
Individual insurance company responses Overview: Admiral is no longer selling new travel insurance policies for the time being. If the policy was purchased prior to the change in FCO advice on all foreign travel then it may refund irrecoverable costs if trips are cancelled, depending on the circumstances of each case. Customers with policies already in place are not affected and multi-trip policies can still be renewed. [01.04] Admiral was listed along other travel insurers in the Which? analysis of policy changes in response to Covid-19. The resulting coverage just lists Admiral as one of the insurers who have changed their details, however the research from Which? specifically notes an exemption, and urged travellers to double check their policies - though that wasn’t picked up in the resulting coverage: “Admiral, The Co-op and NFU Mutual said they wouldn’t cover anyone who travels to a country that has an ‘all but essential travel’ warning in place, regardless of the reason.” Coverage had included: Express.co.uk, Independent [30.03] Admiral has confirmed customers' cover will not be affected if they are volunteering during the pandemic. In fact, Veygo by Admiral has announced that NHS staff will get 75% off their car insurance policy. Media sentiment to these new measures has been positive. Coverage has included: MoneySavingExpert, The Telegraph, The Mirror and This is Money Website [03.04] Their homepage has a message across the top thanking customers for their support and patience, while they adjust their systems to protect staff. They note that call wait times are longer than usual, by new claim calls will be prioritised. The homepage also includes messaging which links directly to a Coronavirus FAQ’s page . They have also posted a notice on their travel insurance page, encouraging customers to email them about travel policy enquiries, as opposed to calling. lansons.com 14
Social media ► [02.04] Admiral have started to share highlights of what staff are doing to help others, including letters of support to the NHS, announcing they were donating £100,000 to the Wales Coronavirus Resilience Fund. They also highlighted that they were donating their daily, office fruit deliveries to local food banks ► [30.03] Shared COVID- 19 news from the ABI and in the national news, including a BBC piece on house prices, urging people not to move. Continued to share relevant content from their website, for example, staying fit and healthy ► [23.03] Posted their COVID-19 FAQ’s and acknowledged lengthy wait times. They announced that due to COVID-19 they are suspending their recruitment process for the time being. They also stated that any new employees due to start in March or April will be postponed to a later date, however they will still be paid. Extended media ► [28.03] Daily Express: Admiral has confirmed customers' cover will not be affected if they are using their vehicle to pick up goods for those self- isolating due to the pandemic ► [26.03] Derbyshire Times: Admiral has shared a list of five helpful things, as voted for by the British public, that could be done to help people be a good neighbor during self isolation. ► [19.03] Insurance Business UK: Admiral extends partnership with CGI lansons.com 15
Direct Line and Churchill share the same underwriter and the same policy. Neither provider is selling new travel insurance during the outbreak. All customers that purchased their travel insurance and booked their trips before March 13th, 2020 and are due to travel within the next 28 days are covered for cancellation. Any new trips booked on or after March 13 will not provide cover for any claim caused by the pandemic. Direct line has halted it’s £150 million buyback scheme in preparation for an expected rise in travel claims and a possible decline in motor insurance claims. Direct Line argue that their decision to suspend new travel policy sales was spurred on by an overwhelming increase in demand. [03.04] As with all other insurers, Churchill and Direct Line were included in the Which? analysis of the travel insurance providers. As with Admiral, they are listed as having said that existing annual policy holders could be covered for UK travel affected by lockdown, but it will depend on the terms of your policy. [30.03] Direct Line has announced it is currently allowing staff to work from home and providing them with the facilities to do so. The media sentiment has been favourable overall. Initial coverage has included: Express, MoneySavingExpert, Insurance Times, Daily Express and The Telegraph Website [30.03] As of the 27th March both Direct Line and Churchill have changed their website homepages to prominently include their COVID-19 statement and advice for customers. Asking customers not to phone unless it is absolutely necessary. Both state they are prioritising customers who have an urgent claim, and note that in the short-term, they’re only accepting new business online. [23.03] Direct Line and Churchill have both updated their travel insurance pages to alert customers on their suspension of new travel policies. Both providers have dedicated Covid information centres: Direct Line, Churchill lansons.com 16
Social media:
► [03.04]: On the 26th of March both Direct Line and Churchill posted links
to their Covid information centres, and haven’t shared public posts
since.
► [03.04]: Their social media managers have been very reactive
responding to customer queries and complaints, particularly about long
call wait times.
► [23.03]: Updated customers on their new FAQ’s and policies during
COVID-19 and encouraged and reassured customers that they are here
if they need anything.. Churchill praised their employees for their
continued hard work during COVID-19 by delivering “great service”.
Extended media
► [02.04] The Guardian: Businesses warned they could lose insurance on
closed premises Direct Line up threshold for leaving business premises
unoccupied to 90 days
► [29.03] Which?: Coronavirus: How are my UK holiday plans affected?
► [24.03] Insurance Business Mag: Churchill partners with Quotezone.
► [24.03] Prolific London: Direct Line launches second stage of hero-fronted
campaign
► [20.03] The Times: Direct Line halts share buyback
► [19.03] Reuters: Direct Line halts buyback, sees rise in travel claims due to
coronavirus
► [13.03] Yahoo Finance: Coronavirus: Direct Line stops selling travel
insurance after 'huge increase' in demand
lansons.com 17Overview
AXA have chosen to alter its travel insurance policy, stating on the 13th March
that if you purchase travel insurance it won’t cover trip cancellation or
disruption in relation to coronavirus. They are currently refusing to accept
claims over the phone, instead encouraging customers to use their online tool
instead.
[03.04] AXA have also chosen to extend their business policy to allow for
unoccupied buildings of 60 days to remain covered.
[02.04] AXA have teamed up with the French Insurance Federation (FFA), to
contribute 27 million euros to the FFA’s 200m COVID-19 relief pot.
[31.03] AXA Ireland announces that all (400) staff are now required to work
from home. AXA are providing them with the necessary equipment to do so.
[30.03] In Ireland, AXA Insurance has said it will pay out legitimate claims from
up to 4,000 firms with business interruption cover if their companies have been
adversely impacted by Covid-19. Media sentiment has been favourable.
Coverage has included: BBC News, The Mirror, Your Money and
MoneySavingExpert
Website
AXA has added a message at the top of its website telling customers about
the policy alterations which include their annual multi-trip policy for new
bookings. They have an extensive FAQ’s page for travel, business and health
policies. The page suggests customers log into their AXA account to make
smaller changes to their policy.
[17.03] AXA Group CEO Thomas Buberl, wrote a message to employees and
customers on his dedication to supporting those affected by the outbreak.
Social media:
► [01.04]: AXA Ireland have partnered with Renault to provide
complimentary cars and 2 months free cover to Ireland’s healthcare
workers.
lansons.com 18► [30.03] AXA announce that they are currently only answering travel
insurance calls for customers stuck abroad.
► [30.03]: AXA highlights that it underwrites several travel insurance policies
from a variety of providers. They highlight this and provide links in a
thread so customers can fill in the correct claimant forms. They also
acknowledge the extended call waiting times, apologise and
encourage customers to message them directly. It has also highlighted its
partnership with Insitut Pasteur a global biomedical research institute via
its LinkedIn page. Institut Pasteur has created a COVID-19 task force with
help from the AXA Research Fund. AXA encourages followers to donate
and assist their efforts.
Extended media
► [03.04] Insurance Business Mag: Businesses warned of the risk of losing
insurance on closed premises
► [02.04] Financial Times: EU regulator urges insurers to halt dividends and
buybacks
► [02.04] InsuranceERM: Axa to provide €27m and 2m masks in Covid-19
battle
► [31.03] Derry Now: CORONAVIRUS LATEST: AXA confirms that all Derry
employees can work from home
► [27.03] RTE: Central bank clarifies issues relating to insurance claims arising
from Covid-19 disruption
► [20.03] Life Insurance International: AXA XL rolls out new insurance solution
for autonomous vehicles
lansons.com 19Overview LV=GI has paused sales of its travel insurance policies and are monitoring the situation closely. Those who bought travel insurance before 11th March will have cover for any medical claims related to coronavirus. You are covered for the cost of cancelling your trip if you are not able to reclaim your costs and your departure date is before May 1st, 2020. FCO guidelines are taken into consideration regarding cruises. [03.04] LV= have announced they are currently considering a payment break scheme for vulnerable customers needing protection. They are reviewing their products for this purpose. [02.04] LV= have changed their call centre opening hours, this is now reflected on the site. [30.03] From the 27th March, LV= decided to temporarily suspend new business for day one and week one waiting periods on its Personal Sick Pay (PSP) income protection (IP) policy. LV= said it will still pay out for confirmed diagnosis for symptoms suggesting coronavirus (COVID-19) which make the policyholder unable to work due to sickness. LV= have also reassured customers that they can join the NHS responder scheme with automatic cover with no need to alter their policy. Media sentiment has been balanced with most publications highlighting LV=‘s existing customers as a priority. Coverage has included: Evening Standard, The Sun, Which? and the Telegraph Website: LV= has updated both its travel insurance and breakdown pages to offer advice on coronavirus and next steps for customers. Its travel page includes an in-depth Q&A section to help relieve pressure on call centres and its online statement has been quoted in the media. It has also centralised all their COVID policy advice for home and car insurance. [02.04] Steve Treloar, CEO of LV= General Insurance has released a note to customers about how LV= are supporting them and their invaluable suppliers. lansons.com 20
Social media:
► [02.04] LV= posted a compilation video of their employees participating in
the #ClapForCarers initiative.
► [02.04] LV= posted a guide on how to maintain your car during lockdown.
► [30.03] LV= reassures customers via Twitter that they do not need to
update their car insurance policy to join the NHS volunteer scheme.
► [25.03] LV= releases a statement on Twitter about the rationale behind
some of their workers being in the office to assist with key claims.
► [24.03] LV= have acknowledged extended wait times for customers on
Twitter and apologise for the delay, continuing with BAU content across all
channels.
Extended media: On the 17th March LV= recently announced a discount
offer to customers for later life, care home services, whilst revamping their
critical illness cover.
► [03.04] COVER: LV= considering 'payment break' amid COVID-19
► [02.04] Mortgage Solutions: LV FS first protection insurer to offer
coronavirus payment holiday
► [27.03] COVER: LV= stops offering day one and week one IP
► [17.03] COVER: LV= and MorganAsh offer Care Navigator discount
► [17.03] FT Adviser: Scottish Widows and LV revamp CI
lansons.com 21Insurtech and smaller firm updates
Overview:
► [03.04] Digital insurer GetSafe has noticed a record month with over 10,000
new customers last month and a new product launch as a result of COVID-
19. Information Age.
► [02.04] Insurtech UK has written an open letter to the Chancellor asking for
start up support. Their chairman Niall Barton also urged traditional insurers
to stand in solidarity by maintaining their innovation partnerships. The
insurtech body joins fellow signees Coadec, Innovate Finance, TechUK, UK
Tech Cluster, Tech Nation and Tech London Advocates. Reported by
Insurance Age, Insurance Edge
► [01.04] Start-up Unqork offers no-code software that was just used by New
York City to build and launch a coronavirus crisis-management platform in
days. Covered by CNBC.
► [26.03] As the UK gets to grips with a lockdown to curb the spread of the
COVID-19 coronavirus, delivery services are more important than ever, and
insurtech startup Zego is playing a small but vital role, reports Verdict. Zego
provides cover for food delivery drivers and the ride hailing industry and is
offering 14 days free insurance to customers with virus symptoms. This
follows continued recognition by Sifted and the Financial Times earlier this
week.
► [23.03] VitalityLife has confirmed its members will be able to make a claim
relating to Covid-19 on its serious illness and income protection plans. This
comes as VitalityHealth has introduced a special cash benefit to all their
members covered with private medical insurance in the event they are
admitted to hospital as an NHS patient as a direct result of infection by
Covid-19. Covered in Which? , Telegraph and FT Adviser
► [23.03] Ecclesiastical Insurance has launched a toolkit to help teachers
offer cyber safety lessons to children aged between nine and thirteen. The
insurer encouraged brokers to share the toolkit with their education clients.
Insurance Age.
► [24.03] Temporary car insurance provider Veygo, underwritten by Admiral
is offering a 75 percent discount on short term car insurance agreements
for NHS. Coverage featured in the Daily Mirror.
► [21.03] British Artificial Intelligence start-up, BenevolentAI has been looking
to artificial intelligence to crunch vast amounts of public data to find a
drug that could be used to treat patients while a new vaccine is conjured.
Reported by the Telegraph.
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