US INSURERS RETURNED $12.9BN IN PREMIUMS IN 2020 AMID PANDEMIC

US property/casualty insurers returned $12.9bn in premiums to policyholders in 2020, reflecting reduced risk exposures amid Covid-19 pandemic-driven lockdowns and reductions in economic activity, AM Best has reported. The most prominent line for premium refunds and credits was motor insurance, as stay-at-home orders reduced both travel by policyholders and exposure for insurers. Other lines of business substantially affected by the pandemic included general liability, workers’ compensation, event cancellation and inland marine. The most common return of premiums was 15%, with some returns as high as 35%, Best said. Some insurers chose not to offer refunds or credits and instead allowed forbearance measures like extended payment terms for premiums and suspended penalties and terminations for late or non-payments.