Insurance companies reimbursed $ 1.2 billion to policyholders in California on June 26, according to actuarial firm Perr & Knight.
The California Insurance Department (CDI) ordered reimbursements to drivers and companies in the state affected by the COVID-19 emergency. Companies were required to submit reports describing the details of their response to COVID-19.
CDI recently published these reports, and Perr & Knight, which specializes in tax filings, published an analysis. Here are some key takeaways:
- California reports have information on the number and percentage of policyholders affected. If the state is a guide, ALL people with a personal car insurance policy got a break on premiums, as did millions of other policyholders, according to James Lynch, Triple-I's principal actuary.
- Private car insurance customers received the largest share of reimbursements – just over $ 1 billion. Commercial car customers received approximately $ 33 million in reimbursement, and workers' compensation customers received $ 82.7 million.
- Commercial customers with multiple hazards received $ 11.2 million, commercial responsibility $ 7.2 million and medical malpractice $ 10.3 million.
The reports also have data on payment delays (grace periods), which is something that has been rejected, partly because it was so difficult to quantify.