As businesses and consumers across the country brace for the devastating economic impact of COVID-19, insurers have taken proactive steps to support policyholders through their financial challenges. Payment relief, premium rebates, policy extensions, and donations are among the many ways in which insurers have stepped up in the absence of much needed federal pandemic relief.
USAA announced today its plan to return an additional $270 million in dividends to auto insurance policyholders. This third set of dividends follows USAA's returns in April and May, which totaled $800 million, pushing USAA's pandemic givebacks to over one billion dollars. "Giving money back to our members, especially now when budgets are stretched, is another way we are helping," USAA President and CEO Wayne Peacock said.
Last week, Nationwide Retirement Plans announced a new fee waiver program that would provide temporary financial relief to plans that move to Nationwide in 2020. "We're here to support plan sponsors and their participants to help ease their burden during these challenging times," said Eric Stevenson, president of the Ohio-based Fortune 100 company. "We want to help businesses balance the costs of offering retirement plans with the vital need for their employees to prepare for a secure retirement – a challenge that has been exacerbated by recent market volatility and uncertainty."
Erie Insurance, a publicly-held insurance company based in Pennsylvania, is also committed to giving back. Since the beginning of the pandemic, Erie has announced $200 million in rate cuts and provided $200 million in dividends to customers across 12 states and the District of Columbia, all while supporting local COVID-19 community efforts. According to Jacqueline Tirpak, vice president of corporate claims at Erie, the company has granted a "record-breaking volume" of requests for delaying payments, adjusting installment dates, changing pay plans, and waiving penalties.
To learn more about what insurers are doing for policyholders, communities, and our economy, watch FAIR's new one-minute video highlighting how insurers have upheld their promises to customers throughout the COVID-19 pandemic.
For more information, visit fairinsure.org.