Columbus-based Branch will give back 15% of monthly insurance premiums in refunds to auto policyholders in response to Covid-19.
The insurtech’s initiative is set to recognise clients’ reduced driving during this time and eases financial burden.
It applies to auto policies in effect during April and May and will be also offered in unique options. Branch policyholders will be able to receive this credit themselves or to help someone that is struggling financially. This is managed through the Branch non-profit entity SafetyNest.
“The cost of insurance is driven by the cost of claims and we believe that since our members have driven less, their premiums should reflect that” said co-founder and CEO Steve Lekas.
“This Giveback is an example of each of us in the Branch Community having each others’ back, during this crisis and always.”
According to Branch, it was founded with the goal to “make insurance more accessible and affordable for everyone and to return the industry to its original intent: a force of communal good”.
It combines technology, data and knowledge of the insurance industry to bundle auto and home insurance. In addition, it saves customers an average of $517 per year. The insurtech is live in five states currently.
Refunds during Covid-19
The insurer will return the money in recognition of customer cooperation during the country-wide lockdown.
Under the move, each of Admiral’s policyholders will receive a refund of £25 for each car and van under coverage as of 20 April, a total of 4.4 million vehicles.
The amount will be automatically credited to the customers at the end of next month.
Admiral has committed an additional £80m to reduce prices and support customers, NHS staff and the local community.
The insurer has also set up a $4m support fund for Covid-19 in south Wales, where the company is based.