News
New research shows over half of UK brokers lack premium finance strategyJuly 6th 2006
- 52% of brokers do not have a strategy for maximising premium finance income.
- 82% opt for credit schemes from insurers for part of their business rather than use independent providers.
- However, 62% would switch to an independent provider if administration is kept to a minimum.
Just over half of all UK insurance brokers have no strategy for maximising income from their premium finance provider, according to the latest independent research from premium finance specialist, Finsure.
The Finsure research of 100 UK brokers also found that while 67% of brokers have reviewed their choice of premium finance provider in the last year, 5% of respondents admitted to not having conducted any form of review in the last five years or more.
Interestingly, 62% of brokers said they would be prepared to switch from insurer schemes to an independent premium finance provider if the administration of switching could be kept to a minimum. This was followed by 53% of those surveyed stating that they would be interested in moving their insurer premiums if the independent provider could carry the debt risk-free and pay commission on the net balance.
Nick Elliman, Head of Business Development at Finsure, said:
“The most striking fact from our research seems to be that so many brokers have chosen to use insurers’ credit schemes even though these are less flexible than those offered by third party premium finance specialists. It seems that some brokers believe that insurer schemes offer best value to their customer, when frequently this is not the case.”
He continued, “Premium finance providers are able to offer a higher
degree of flexibility. When reviewing their strategies, brokers could consider
whether providers can match the rate for the clisent, offer a low-administration,
deposit free transfer of business, and pay commission on funded premiums
with no risk to the broker. Furthermore, a premium finance provider is able
to renew an agreement seamlessly even when the insurance business is re-broked,
again saving on administration time and additional paperwork.”
