Admiral shares up as insurer issues £110m refund to customers during lockdown
Shares in Admiral jumped three per cent today after the insurer announced it will refund £110m to customers as the coronavirus lockdown has reduced the need for car travel.
Admiral said this morning that there are fewer cars on the road, and therefore it expects to receive fewer insurance claims.
The insurance company will refund £25 to customers for each car or van covered by Admiral, a total of 4.4m vehicles.
Cristina Nestares, chief executive of UK insurance at Admiral said: “During this challenging period, our main priorities have been helping our customers, supporting our local community and protecting the wellbeing of our staff, which is why we have introduced these initiatives to give something back to the customers and communities we serve.
“This is an unprecedented time when people across the country are driving significantly less than before the lockdown, and we expect this to lead to a fall in the number of claims we are seeing.
“We want to give the money we would have used to pay these claims back to our loyal customers in this difficult time. We have also already reflected this change in driving behaviour in our pricing for customers and will continue to do so.”
The money will be automatically refunded to customers at the end of next month .
Admiral will also waive motoring claims excess fees for NHS or emergency service works and guaranteeing cover for NHS volunteers. Admiral will also offer a free courtesy car to health staff and emergency workers if their vehicle is stolen or damaged in an accident.
The firm has set up a £4m Admiral support fund, providing funding and support in south Wales, where the company is based.