U.S. property/casualty insurers returned nearly $13 billion in premiums to policyholders in 2020 to reflect reduced exposures from the COVID-19 pandemic.
Auto insurers returned premium in the greatest numbers, though general liability, workers’ compensation, event cancellation and inland marine sectors all reported returns of premium due to pandemic-related reductions in risk exposure, A.M. Best said in new analysis.
Much of the return totals came during the first six months of 2020, when the initial pandemic lockdowns led to reduce driving and overall commerce in the greatest volume, according to the report.
The most common return of premium was 15%, though numbers went as high as 35% in some cases, according to the commentary.
Nearly 400 insurers reported specific amounts of return of premium related to the COVID-19 outbreak, A.M. Best said. That number came from more than 2,600 statutory statements and related disclosures the ratings agency reviewed for more than 2,600 U.S. property/casualty insurers.
Some of the largest premium return totals as compiled by A.M. Best were:
- Berkshire Hathaway Insurance Group, $3.4 billion
- Allstate, $1 billion
- Progressive Insurance Group, $1 billion
- USAA Group, $1 billion
- American Family Group, $502 million
- Liberty Mutual, $305 million
- Travelers Group, $225.6 million
- Nationwide, $143.6 million
- Kemper PC Companies, $99.8 million
- Great American P/C Insurance Group $78 million
- Hartford Insurance Group, $75.8 million
Source: A.M. Best, P/C Insurers Return Nearly $413 Billion in Premiums as COVID-19 Reduces Exposure
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