Branch, a U.S.-based insurtech startup, announced on Monday it is set to give back 15% of monthly insurance premiums to its auto policyholders in response to the COVID-19 pandemic. According to Branch, the compassionate initiative recognizes clients’ reduced driving due to shelter in place orders in effect and works to ease the financial burden many are facing across the country.
“This credit will apply to auto policies in effect during April and May and will be offered in unique options. Policyholders will be able to receive this credit themselves or help someone that is struggling financially, through the Branch nonprofit entity SafetyNest.”
Also speaking about the initiative, Co-Founder and CEO of Branch, Steve Lekas, further stated:
“The cost of insurance is driven by the cost of claims and we believe that since our members have driven less, their premiums should reflect that. This Giveback is an example of each of us in the Branch Community having each others’ back, during this crisis and always.”
Founded in 2017, Branch explained that it “taps” into the power of community to make insurance accessible and affordable for everyone, utilizing technology to make it easier to save money by bundling home and auto insurance within seconds. So far, Branch has launched its insurance services in four states Arizona, Illinois, Missouri, and Ohio.