The British Insurance Brokers’ Association (BIBA) has renewed its agreement with Premium Credit Limited to continue providing a premium finance facility for its members.
It allows members to offer personal and commercial customers the option to spread insurance premium payments.
Through the partnership, BIBA members can access digital solutions, along with a broker portal designed to streamline administration and ensure compliance. In its manifesto, the association said that streamlining regulatory reporting requirements is part of its six-point plan this year.
Premium Credit will also provide learning and development support for brokers, offering training to improve premium finance services and enhance customer conversions.
“Brokers’ personal and business customers need payment options that lessen the impact of a single payment on cash flow,” said Owen Thomas (pictured), chief sales officer at Premium Credit. “This is particularly crucial in the current economic environment.”
Meanwhile, BIBA chief executive office Graeme Trudgill said that premium finance is a “vital product” that makes insurance accessible for many people who don’t necessarily have the funds to pay upfront.
In October, Premium Credit released research revealing that nearly half (48%) of insurance customers value the ability to pay monthly using premium finance or financing options offered by insurers.
Seventy-one per cent (71%) of the respondents cited budgeting as the main reason why they prefer monthly payments, while 27% of that figure said paying monthly makes sense because they already pay other bills on such a basis.
The study also said that nearly three out of four personal lines insurance customers use some form of credit to pay for at least one policy.
