Managing Insurance During Lockdown
As email inboxes and WhatsApp groups clutter up with advice of how to cope with COVID-19, Christelle Colman from Elite Risk Acceptance (one of I&DRS preferred Executive and High Net worth Insurance Underwriters) suggest three simple questions to help guide consumers in these unprecedented times.
Financial difficulties, can’t afford premiums?The best way to reduce premiums during lockdown – without abandoning cover altogether – is to reassess risk exposures and adjust cover accordingly. Options include:
- Reducing cover temporarily
- Increasing excesses in line with reduced risk
- Premium discounts and waivers for designated essential service workers
Need to reduce cover to match lower earnings?Premium deferment or delayed payment options are being offered by most insurers to consumers impacted by reduced income as a result of COVID-19. For example, Old Mutual Insure offers clients various premium deferment options, with delayed pay-backs over set periods. Leniency on missed debit orders, where customers have lost or have experienced reduced income because of COVID-19 is also available. Old Mutual Insure is also offering, customers who register on the iwyzeHUB before 30 April 2020 the opportunity to activate a three-month 7.5% discount on motor premiums. To support these initiatives, Old Mutual Insure has established a ‘Help U’ team of 50 insurance experts dedicated to reviewing premium relief requests across all commercial, agriculture and personal business lines. The team, provides guidance and recommends interventions to assist customers maintain and manage essential and relevant cover in lockdown.
Need to avoid unnecessary premiums during and after lockdown?To avoid unnecessary cover:
- Use brokers
- Keep up maintenance
- Update the contents and value of policies