The two property and casualty (P&C) insurance units of Cincinnati Financial Corporation CINF — The Cincinnati Insurance Company and The Cincinnati Casualty Company — have unveiled plans to reward its customers during the coronavirus crisis. Subject to customary approvals, existing auto insurance clients of the company’s two units will receive a credit of 15% on their monthly premiums payable in April and May. The reward also recognizes the efforts of its members, who have promoted social distancing and stayed back at home.
The latest announcement comes as a relief for the company’s policyholders, who are laden with financial burdens during the pandemic. Apart from causing fatalities across the United States, the pandemic has affected the U.S. economy.
Given the pandemic, Cincinnati has undertaken several measures for ensuring the well-being of its customers, agents and associates. For its personal lines and commercial lines’ policyholders, the insurer will not cancel policies due to the failure in the payment of premium and forgo late fees until atleast Apr 30. Businesses engaged in the manufacturing of personal protective equipment will get additional risk-management services provided by the company.
Moreover, Cincinnati has adopted a number of measures for protecting the health of its agents and associates, which are noteworthy. Apart from training sessions being conducted virtually now, agents will be connected for discussing measures to serve clients more efficiently during the dismal period.
Notably, the insurer will provide the work-from-home facility to more than 95% of its associates. Particularly for associates in critical locations, the company will offer face masks and sanitization essentials. For associates, who could not work from home or were engaged in looking after their family members during the coronavirus outbreak, Cincinnati will provide full pay.
However, shares of this Zacks Rank #3 (Hold) insurer have lost 5.1% in a year compared with the industry’s decline of 8.7%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, three other auto insurers, namely The Allstate Corporation ALL, The Travelers Companies, Inc. TRV and MetLife, Inc. MET, have undertaken similar steps to help its members. Allstate announced that it will provide a Shelter-in-Place payback worth more than $600 million and refund almost 15% of its customers’ monthly premium in April and May. Travelers also initiated a Stay-at-Home Auto Premium Credit program, with the plan to reward its personal auto insurance customers by refunding 15% on the basis of their auto premiums, payable April and May. Similarly, the property and casualty business of MetLife — MetLife Auto & Home — planned to reward its existing auto insurance customers by refunding 15% of monthly premiums payable by members for April and May.
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