Insurer’s decision works out at about €33 for each motor insurance policy

Axa has become the first of the major motor insurers operating in the Republic to spell out its plans to offer a rebate to customers, putting aside about 33 for each motor policy.
The Irish arm of the French insurer told The Irish Times it would set aside up to 20 million to offer its customers a rebate as a result of fewer claims associated with the nationwide shutdown caused by the Covid-19 pandemic.
Axa has about 600,000 motor policies, 30 per cent of the total market in the Republic which is comprised of more than two million policies.
On Friday, sources in the insurance market suggested that an announcement by five insurers Axa, Allianz, FBD, RSA and Zurich to return funds to their motor customers would cost about 37.5 million in refunds and discounts.
But given the scale of Axas provision, that could now rise to as high as 50 million for that grouping. It had been anticipated that the insurers most of which have British parents will look to the example there where insurer Admiral said it would provide a £25 (28.55) rebate.
None of the other major insurers have set out their position except Aviva, which isnt offering rebates.
A statement from lobby group Insurance Ireland issued last week detailed the plans to return funds to consumers as travel restrictions mean that insurers expect fewer claims on policies.
It noted that the insurers, which cover 75 per cent of the market, would review the situation if Covid-19 restrictions on movement resulted in sustained lower road usage and claims frequency for the summer and beyond.
Separately, Liberty Insurance said it was exploring meaningful ways of supporting our customers with a rebate.