Allianz To Refund €9M To Ireland Auto Customers

By Lucia Osborne-Crowley
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Law360, London (April 30, 2020, 5:26 PM BST) -- German insurance giant Allianz has said it will hand back €9 million ($9.7 million) to its Irish car insurance customers to reflect the drop in traffic amid the COVID-19 lockdown.

Allianz Ireland said Wednesday it will give a €30 refund for every private car, van or taxi policy as a way to pass on savings it has made after a sharp drop in claims being processed during the coronavirus pandemic.

"This is in recognition of falling traffic levels as a result of restrictions put in place to mitigate the potential impact of COVID-19," Allianz said. "Overall, this will see us return approximately €9 million to our customers in the Republic of Ireland."

The insurer said it took the decision after an announcement by Insurance Ireland, a body representing the sector, this month, stating that several motor insurers in the country, including Allianz, had agreed to offer customers relief amid the pandemic.

"We are now six weeks into the COVID-19 restrictions on movement and it is clear that road usage levels have fallen significantly," Insurance Ireland chief executive Moyagh Murdock said on April 24.

Insurers agreed to assess the amount of claims they have received and any savings made as a result of the drop-off, and to pass those savings on to consumers through financial support. The specific relief offered by individual insurers will depend on their circumstances, Insurance Ireland said.

Allianz warned customers that the refund will not change any other terms or conditions in the policy. Consumers do not have to take any action in order to get the refund, it said.

It's the latest in a series of moves by insurers and regulators to try and protect consumers from the economic fallout of COVID-19.

The Central Bank of Ireland asked insurers in March to prioritize customers' needs as they assess claims for pandemic-related losses. Insurance Ireland agreed to be flexible and give policyholders the benefit of the doubt.

Britain's Financial Conduct Authority put out a call in March urging insurers to treat customers fairly during the public health crisis.

--Additional reporting by Najiyya Budaly. Editing by Alyssa Miller.

For a reprint of this article, please contact reprints@law360.com.

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