Division of Insurance working to reduce insurance costs

In response to lifestyle changes due to the novel coronavirus pandemic, the Alaska Division of Insurance is providing guidance to insurers and consumers, plus efforts on how to get returns of premiums and reduction of payments.

“We recognize the impact that COVID-19 is having on individuals and businesses and we are doing our best to be proactive,” said Lori Wing-Heiek, division director.

Among the several bulletins issued by the Division of Insurance is one explaining that many property and casualty insurance policies calculate premiums based on exposure estimates made at the time the policy is issued.

Examples of common exposure bases include miles driven, sales revenue, receipts or payroll. Due to the far-reaching effects of the COVID-19 outbreak and the local, state and federal governments’ responses to the pandemic, for many policyholders, initial estimates are expected to be much higher than the estimate would show during this pandemic.

Recognizing that there are other difficult-to-quantify effects of the COVID-19 outbreak that will affect exposure to loss in the near term, insurers are encouraged to allow policyholders to self-audit and self-report changes in their exposure or risk profile and adjust premiums accordingly, the agency said.