To my fellow PURE Members,
At this time, we continue to hope that you and your loved ones are safe and healthy. We believe our purpose as an insurance company is to help our members live their lives to the fullest and pursue their passions with greater confidence. These days, we all look forward to the thought of greater human engagement and personal fulfillment. As our country pulls together to fight the spread of COVID-19, I am writing to share our evolving approach to serving our members and partner brokers. I want to specifically address the movement to refund a portion of automobile premiums for a period of time when the amount of driving has been dramatically reduced.
PURE’s interests are aligned with our members’.
Overall, fewer miles are being driven and as a result, auto claims are down. The beauty of our structure as a reciprocal is that it provides an automatic mechanism to return underwriting profits to our members. We do this every year, for every product, consistently. We are committed to return any premiums left over after claims and expenses to the membership in the form of a contribution to their Subscriber Savings Account (SSA). Over the years we have allocated over $80M back to the membership, and in the next few weeks we expect approval to allocate a further $22M to SSAs for the 2019 results.
We are committed to making a Reduced Miles Refund to members with PURE auto policies.
However, we recognize that these are exceptional times, and we are committed to making a Reduced Miles Refund to all members with regular auto policies with us. Subject to regulatory approval in each respective state, we will provide a 15% credit on all regular auto premiums for the period of time from the introduction of state stay-at-home orders until they are lifted, up to 4 months. As the stays are lifted, these credits will be paid in cash or applied to reduce any outstanding balance due to PURE. Note that, because our premiums for Classic Cars already reflect the low-to-no mileage of these vehicles, this credit will not be applied to Classic Cars..
We are giving back to our communities.
Last month, the charitable arm of Privilege Underwriters, Inc. (PUI), the parent company of PURE’s attorney-in-fact, made grants to a dozen charitable organizations where our employees have committed hundreds of hours of their own time to make a difference. As the need for assistance has grown, the PURE Insurance Foundation has made an additional grant of $500,000 to these fine organizations. We are proud of our employees’ sustained commitment to make a difference; and all of our help is needed now more than ever.
We hope you continue to be safe and healthy.
President & CEO