We aim to treat our customers as individuals, whilst also treating each customer fairly. Many of our motor customers are continuing to use their vehicles regularly and therefore, they don’t have a reduced level of risk. While we continue to review further ways to help, this means that taking a broad-brush approach to motor premiums would not be appropriate.
However, in order to respond to a specific customer having a change in circumstance due to Coronavirus, we can offer either a mid-term adjustment or a mid-term cancellation which, unlike many of our competitors, we offer free of charge.
Many of our motor and business customers are already taking advantage of mid-term adjustments and we are encouraging any customer who has had a change in circumstances or is struggling financially to contact us so we can support them. For more information, please refer to the adjustments FAQ.
Our approach as a mutual is also based on offering long term value informed by our claims experience, looking across the full year and with a holistic view across all our policies.
This means that profit resulting from reduced claims for motor and our other insurances is reflected in the Mutual Bonus that we give to our members, which provides premium discounts at renewal and rewards loyalty.
We expect to provide £250m worth of premium discounts to customers who renew between July 2020 and June 2021, and our Mutual Bonus has already saved our loyal customers £820m in premiums during the past five years.
The situation is constantly evolving, and our teams are continually researching and developing new ways to help our customers further across all our insurances and processes, including our motor customers. This is in addition to the £32m Coronavirus Support Package we announced a couple of weeks ago which includes £24m worth of changes to insurance, incorporating additional cover across a range of policies and speeding up claims.