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Coronavirus: Insurance trade body launches £100m hardship fund

Lianna Brinded
·Head of Yahoo Finance UK
·2-min read
London skyline
City of London skyline by the river Thames. (Barry Lewis/InPictures via Getty Images)

The Association of British Insurers (ABI) launched a new fund intended to help support some of the people hardest hit by the coronavirus pandemic.

The trade body confirmed that it aims to raise £100m ($121m) from British insurance firms to help provide relief to charities affected by COVID-19, as well as building a longer-term programme of support for people, communities, and issues where there is the greatest need. This includes charities supporting the most vulnerable, such as families and children living in greatest poverty and older people in isolation.

“Getting these vital funds quickly and safely into the hands of the many charities at the heart of our communities is central to CAF’s mission and we are proud to be able to work alongside those in the insurance and long-term savings industries to make this happen,” said Sir John Low, chief executive of the Charities Aid Foundation (CAF).

“We know it will make a huge difference to many people in need of support at this time.”

Insurance giant Lloyd’s of London, as well as Hiscox (HSX.L) and RSA (RSA.L) are among latest in a long line of donors to a new British insurance and long-term savings COVID-19 support fund — which already has £82.5m pledged.

Other firms which have contributed include Aviva (AV.L), Zurich UK (ZURN.SW), and AXA UK and AXA XL (CS.PA).

Some £20m of the donations pledged so far, has gone to the National Emergencies Trust.

“Since the launch of our coronavirus appeal, generous pledges have meant we have been able to distribute more than £30m and make more than 4,000 grants to charities across the UK,” said General Lord Dannatt, chairman of the National Emergencies Trust.

“We are hugely appreciative of the support from the Insurance and Long-Term Savings community and will work to ensure the funds raised are quickly distributed to those who are most in need."