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

FBD: Insurer has issued rebates to businesses closed due to Covid-19. Photograph: Dave Meehan/The Irish Times

FBD: Insurer has issued rebates to businesses closed due to Covid-19. Photograph: Dave Meehan/The Irish Times

 

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.

Provisions

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.