US property and casualty insurers returned premiums of more than $12.9 billion last year associated with reduced exposures due to the COVID-19 pandemic, according to a report from AM Best.
For a new Best’s Commentary, AM Best reviewed the 2020 statutory statements and related footnote disclosures for more than 2,600 US P&C insurers. While the line of business was not always disclosed, the most prevalent line was related to auto coverage, AM Best said. Stay-at-home restrictions cut down on the amount of travel, thereby reducing exposure for auto insurers.
Other lines of business substantially impacted by the pandemic included general liability, workers’ compensation, event cancelation and inland marine.
“Where stated, 15% appears to be the most common return of premium, with some returns as high as 35%, over the time period,” AM Best said. “Some insurers, while not returning premiums, allowed forbearance measures such as extended payment terms for premiums and suspended terminations for late or non-payments.”