Life insurers have responded to a call from Synchron to step up in the face of the coronavirus pandemic.

Synchron Director Don Trapnell wrote to the CEOs of each life office last month, asking them to take a leadership position in relation to people facing financial hardship brought on by COVID-19.

“I was very concerned that the coronavirus could spell the end of the life insurance industry unless appropriate action was taken immediately,” Mr Trapnell said. “I therefore called on insurers to share the measures they were putting in place to protect policyholders.”

Life insurers have now responded and Synchron has summarised their responses in the attached matrix. 

“I am very pleased to have received headline responses from each company we approached,” Mr Trapnell said. “I am also heartened by the fact that while some are more generous than others, and all indicated that the circumstances of each case will be considered on its merits, each life office appears to be viewing policyholders sympathetically.”

Mr Trapnell said the responses from life insurers indicate that the industry will survive the pandemic. “Clients will be far more likely to be able to hold on to their life insurance policies, which means advisers will be more likely to be able to remain in business and therefore the industry as a whole will be able to remain viable,” he said.