To my peers in the insurance industry:
It’s our responsibility to help our communities respond to the extreme challenges they face with the coronavirus crisis.
In extraordinary circumstances, insurance companies can’t stand by and watch as businesses close and the unemployment rate climbs. We need to take action now.
If there is a wildfire or hurricane, insurers usually charge more in response to the increase in risk, and they should. If we apply the same logic with the coronavirus crisis, people are working less, driving less, and incurring less risk — their insurance prices should go down.
For us, it was crucial to help our customers, the small business owners, reduce their overhead as they navigate a new reality with COVID-19.
We know that less foot traffic means less general liability risk for Main Street businesses. If professions like accountants and consultants are working with fewer clients, there are fewer professional liability risks. And if people are at home and rarely driving, they should be paying less for auto insurance.
Effective immediately*, our general liability, professional liability, and commercial auto insurance customers will see a 25% reduction in their April insurance costs.
We will continue to evaluate this and other initiatives to contribute to the small business community.
We strongly encourage other insurance companies, if they are profiting from reduced risk, to take similar steps. Insurance is a social good, and it’s supposed to help the community. At Next Insurance we are trying to deliver on that every day — now more than ever.
Guy Goldstein, CEO