Zurich has published a series of measures aimed at supporting coronavirus-affected clients and brokers, while Hollard says it is developing its “own unique response” in close consultation with intermediaries.

As previously reported, major insurers Suncorp, QBE and Allianz last week announced a joint scheme, which has been approved by the Australian Competition and Consumer Commission (ACCC). IAG had already moved forward with its own similar measures.

Both initiatives included the option for clients suffering financial hardship to postpone premium payments for six months, which caused concern among some brokers due to the impact on their own operations.

The ACCC says other insurers can join the approved scheme, and industry sources have suggested several other insurers will join once they have received clearances. However, neither Zurich nor Hollard have confirmed any intention to do so.

“Hollard recognises the months ahead are going to be a trying time for consumers, small businesses and the broader economy,” a spokesman for the insurer told insuranceNEWS.com.au.

“We are developing our own unique response to the COVID-19 crisis and subsequent economic conditions. We are engaging closely with our intermediary partners, many of whom are small businesses in their own right, to ensure a fit-for-purpose solution.”

Zurich today sent a note to brokers outlining its own measures after “listening carefully to the broad range of issues raised”.

It says teams assessing SME Business Package claims will take into account the following variations to standard cover:

• An increase in the percentage allowable for the temporary removal of contents from the insured premises as a reflection of company assets being removed and used at employees’ homes. The benefit will be increased from 20% to 50%.

• Zurich will apply flexibility in recognising financial hardship and the inability of customers to meet their premium payments. The specifics of the extensions allowable are to be negotiated with the broker on a case-by-case basis.

• In the event of a premises being unoccupied as a result of COVID-19, Zurich will extend the 90-day unoccupancy clause to 180 days with no increase to premium or excess.

• Recognition of gross profit and business interruption complexity. Zurich will adjust for normal trading activities in recognising the complexity of the business interruption indemnity period and co-insurance clauses.

These actions will apply to claims occurring on and after March 11 until June 30 this year.

Zurich also says it is committed to “applying flexibility to all customers and brokers during this challenging time”, and will do so on a case-by-case basis.

“We also remain committed to the broker advice model and the measures outlined… reflect a nuanced approach to ensure that we can address your individual customer needs, which can be vastly different depending on the complexity of the customer,” Zurich says.

Click here to see the Zurich measures in full.