FBD pays average premium rebate of €900 to commercial customers

Insurer’s refunds to businesses closed by Covid-19 restrictions stand at €4m this year

Insurer FBD has paid an average commercial premium rebate “in excess of €900” to businesses this year that were closed during Covid-19 restrictions.

FBD chief executive Tomás Ó Midheach told the company’s agm this week that it was in the process of rebating premiums for employers liability / public liability (EL/PL) and business interruption cover and that in the year to date these rebates had totalled €4 million.

The impact of the rebates on the company have been “offset by a lower frequency of claims”, Mr Ó Midheach said.

In 2020, a number of motor insurers gave rebates to customers after the first Covid-19 lockdown to reflect the lower claims rate during a period when travel restrictions were in place. Private health insurers also repaid a portion of premiums covering the months when private hospitals were providing services to the HSE.


Meanwhile, FBD has set aside €65 million of provisions last year for its exposure to pub claims under business interruption policies triggered by Covid-19 restrictions. It estimates that the total cost of making good on claims from over 1,000 pubs will come to €150 million, with most of it passed on to its reinsurers.

A landmark test case, taken by four pub groups who did not receive a payout on their policies, found in February that the insurer was liable. A High Court hearing to determine the amount of losses incurred by the four publicans will be heard in July.

Laura Slattery

Laura Slattery

Laura Slattery is an Irish Times journalist writing about media, advertising and other business topics