The coronavirus lockdown has now confined Britons to their homes for five weeks, apart from essential journeys. In recognition of everybody driving less, and the subsequent profit made from reduced insurance claims, Admiral has offered £110 million back to their car and van customers as part of a ‘Stay at Home Refund’.
A £25 refund will be automatically given to all 4.4 million current customers at the end of May. Admiral stressed on their website that they didn’t want to profit from the lockdown, and were therefore returning their best estimate of the savings they’d made.
Although £25 will be a generally low percentage of most people’s monthly car insurance payments, YouGov BrandIndex data shows that this gesture of consideration during the coronavirus crisis has gone a long way with customers.
Buzz scores (a net measure of whether consumers have heard anything positive or negative about the brand in the last fortnight) for the insurers increased by 10.5 points, while Reputation scores (whether someone would be proud or embarrassed to work for a brand) increased 2.4 points.
Admiral is already seen favourably compared to other insurers as the 8th most popular insurance brand among Britons. However, YouGov data shows that from the week before announcing the refund to the week after, Admiral moved from fourth to third best performing insurer for public impression.
Unsurprisingly, the refund increased Admiral’s satisfaction scores among those who are already customers by 13.9 points in just four days. Word of Mouth Exposure scores (whether someone has talked about the brand with friends and family in the last two weeks) for this group increased by 30 points alongside a 25.9 point increase in Attention scores (whether someone has heard anything about a brand, positive or negative, in the past two weeks).
As a result of this low impact financial gesture, those who already hold policies with Admiral have an improved user experience and higher customer satisfaction levels. Some of these customers will remember Admiral’s actions during the global pandemic when it comes to policy renewal meaning the loss of the £110 million through the refund will be well spent.