FBD among insurers agreeing to reduce premiums for businesses

FBD is among some of the key companies in the insurance sector that have agreed to reduce premiums for business customers “to reflect reduced levels of exposure as a result of Covid-19”.

At the end of last month, Paschal Donohoe, the Minister for Finance and for Public Expenditure and Reform, wrote to Insurance Ireland – the industry group which represents insurers – requesting that its member companies “take a more customer-focused approach” when dealing with businesses.

The minister also asked that insurers be “pro-active in setting out clearly what measures they are taking to provide certainty for consumers at this extraordinary time”.

Minister Donohoe believes that, although individual insurers have taken some steps (such as FBD’s farm relief voucher initiative), there has not been a “sufficiently consistent approach”.

Due to a significant reduction (if not complete cessation) of income for some businesses, and therefore reduced insurance risks, Minister Donohoe argued that there is a need for flexibility around payments of premiums, renewal of policies and use of premises.

After engagement between the minister’s officials and Insurance Ireland, several of the largest insurers in the country, including FBD, gave the following commitments:

Insurers will reduce premiums for business customers to reflect reduced levels of exposure;
Insurers will allow up to 28 days after renewal for payment;
Insurers will maintain cover for unoccupied or unused commercial buildings/premises for a maximum of 90 days, provided appropriate supervision and security of the premises is maintained;
Insurers will support requests for a change of property use during the Covid-19 pandemic.

“I would like to thank Insurance Ireland for facilitating this agreement. In these difficult times, I am pleased that most of the large insurers in this country recognise that they need to have a co-ordinated, pro-active response in relation to issues such as forbearance and the handling of unoccupied premises,” Minister Donohoe said.

FRS vouchers

This week FBD announced a new initiative to financially assist its farm customers affected by a Covid-19 diagnosis.

In a statement on Tuesday, April 7, FBD revealed that upon diagnosis, and if a farmer is unable to work, a Farm Relief Service (FRS) voucher of €500 will be provided to assist in keeping farms operational during this period.

This will be subject to terms and conditions, with a limit of €200,000 on funds, the insurance provider noted. This equates to 400 farmer clients struck down with the coronavirus.