We are pleased to launch the Premium Funding Industry White Paper and Broker Survey
Click to view our – Premium Funding Industry White Paper and Broker Survey
While often considered a small part of the insurance industry, the premium funding product can be at times overlooked for the important impact it has on the insurance industry. Huge numbers of clients rely heavily on what is one of the simplest forms of finance available to assist with payment of the annual insurance cost. Many of these clients would simply not be able to afford their premiums if it were not for premium finance. So in this white paper, we share our data, insights and trends to help you make better decisions for your business and clients.
With an estimated one in three commercial premiums in Australia funded, premium funding companies actually gather an enormous amount of data around premiums, policies, renewals endorsements, client locations and price. However, very little is known or reported about premium funding companies – so I thought I would share some of this data with our Brokers and the industry as a way of learning together and leveraging opportunities.
We know the market is about $4 Billion and there are roughly 270,000 commercial funding contracts written annually. Very limited knowledge is shared by funders, considering approximately 30% of commercial policies in Australia are funded. So, we’re going to roll back the curtain and share that data with you here in our inaugural white paper – which we will publish annually, so you can monitor changes to your industry and adapt your business to suit.
In 2015, we at Premium Funding funded approximately 1 out of every 7 commercial premium funding contracts in the market. While information is not readily available, it is estimated that would put us in the top 3 funders based on volume of contracts written. We had over 1,000 Brokers use us to provide clients with over 100,000 quotes for some 300,000 insurance policies. We firmly believe this is enough data to demonstrate some very solid trends across the industry. This mass of information is how I have been able to draw some meaningful insights and conclusions about our industry that may be of use to you in your course of business.
2015 NIBA Conference Melbourne: Left to Right: Nick Sidoti, Shuzaha Houghton, Brett Rudzis, Michael Vergura.