Supplier says current prospects won’t be affected by the transfer.
LV has confirmed that it has paused the sale of journey insurance coverage to new prospects as a result of coronavirus.
A spokesperson for the supplier advised Insurance coverage Age that the transfer won’t have an effect on current prospects who have already got a coverage with LV, including that the supplier remains to be paying claims and providing renewals.
The choice was taken after the insurer noticed the variety of insurance policies bought double within the final couple of weeks.
The Guardian reported that coronavirus had prompted the transfer yesterday (11 March).
LV mentioned in an announcement: “While LV is a significant motor and residential insurer, we’re a small journey insurance coverage supplier and it’s essential for the long-term good thing about all our prospects that our publicity to this market stays at a sustainable stage for the general enterprise.
“We thought-about plenty of completely different choices, comparable to excluding cowl or considerably growing costs for brand new prospects however we strongly imagine this short-term measure of pausing the sale of latest insurance policies and specializing in our current prospects is the suitable determination.”
The supplier maintained that it stays dedicated to the journey insurance coverage market and famous that this can be a short-term transfer “given the distinctive circumstances we discover ourselves in”.
It concluded: “We are going to proceed to watch the state of affairs carefully and evaluation the choice on an ongoing foundation.”
The spokesperson additional defined that the supplier doesn’t promote journey insurance coverage through brokers.
The coronavirus has seen different suppliers take motion, with Axa clarifying that it’s going to solely cowl specified ailments for enterprise interruption earlier this week.
As well as, the British Insurance coverage Brokers Affiliation has pledged to assist its members amid the growing unfold of Covid-19 following a warning from the Monetary Conduct Authority.
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