GlobalData senior insurance analyst Daniel Pearce has given his verdict that Admiral’s flat £25 rebate is more likely to gain favour among its customer base than the LV= approach of targeting those struggling financially.
The Bournemouth-based insurer announced last week it will distribute £30m ($37m) among customers who, due to Covid-19, have been driven into unemployment, furlough or unable to work as a self-employed person – so long as those in the latter two situations have not yet received money from government support programmes.
Citing the fact that customers in the above situations must contact the insurer and provide proof of their situation to receive a rebate, as well as how the approach will be viewed by those that aren’t able to claim money back, Pearce said LV= is unlikely to gain as much favour as its rival.
“In my opinion, the move by Admiral, which follows the principle of equality, will be viewed as a more positive step by policyholders as all will see a benefit and there is no need for them to undertake any action.,” he said.
A vocal critic of motor insurers recently, By Miles CEO James Blackham also explained why he feels the move from LV= is a step down on its competitor’s action.