Zurich and FBD settle on rebates for motor customers

Zurich Insurance and FBD settled on rebates for their motor customers on Friday, with both offering the refunds in the form of gift cards which will cost the two insurers about €12.6 million.

FBD told customers they would receive a €35 refund in the form of a voucher, while Zurich said on Friday that it would give a €40 refund in the form of a gift voucher.

The move by FBD will cost the company €7 million while it is understood that Zurich’s offer will set it back by about €5.6 million.

Both insurers, among the last to publicly lay out their plans, are returning savings to their customers that flow from fewer claims as a result of travel restrictions imposed during the Covid-19 pandemic.

Banks urged to avoid ‘cliff-edge’ on loan payment breaks

---

Coronavirus: Insurers risk becoming the new bankers

---

Motor insurers told rebates do not breach competition rules

---

S&P lowers outlook on Irish banks’ ratings to negative

---

FBD and Zurich's move follows that of Allianz, which on Wednesday said it would refund €9 million to its customers with individual policyholders on track to receive a €30 rebate.

Axa on Monday said it would set aside up to €20 million to refund customers, equivalent to about €33 for each motor policy.

Rebates

Liberty Insurance is setting aside €5 million for rebates, which averages out at about €25 per customer.

RSA, one of a group of insurers which last week said they would refund money to customers, has yet to lay out its plans.

FBD said its customers would receive their gift card in the post over the coming weeks “and there is no need for further action on their part”. It added that One4All gift cards were the fastest and most efficient way to provide rebates for such a large volume of customers.

While a cohort of insurers will offer refunds, some are not offering them. Both Aviva and AIG have said that the decline in claims would be reflected in their pricing of new policies but that refunds would not be offered to customers.