Carriers announce lower premiums for group benefits plans as claims decrease
Other insurance companies are joining Canada Life in lowering premiums on group benefits plans for coronavirus-hit small businesses.
Green Shield Canada has announced that in April, May, and June, it will reduce premiums for non-refund clients in the form of a 75% reduction in dental rates, coupled with a 20% reduction in health rates, including vision but excluding drug coverage.
The firm said the reductions will be reflected in May billings and retroactive to April 1, 2020; the reduced rates will also be reflected in June billings.
“We hope these premium reductions provide some cost relief for our clients as they navigate the complexities of this pandemic,” said Brett Allen, GSC’s executive vice president, Group said.
The company it will keep observing the COVID-19 situation and determine the appropriate position for July and succeeding months.
In Quebec, La Capitale Insurance and Financial Services has reduced dental care premiums for its group health insurance plan.
“A fundamental principle of insurance is that the premiums should reflect the risk,” said Jean St-Gelais, chairman of the Board and CEO of La Capitale Insurance and Financial Services. “The confinement measures ordered by the authorities and the limits on certain services are resulting in fewer dental care claims. … This is why dental care premiums for the months of May and June will be reduced by 60% for SMEs with this coverage.”
La Capitale said that the move will help ease the burden for some 3,000 small and medium enterprises and their 70,000 employees.
