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Premium FInance

Can integrated premium finance benefit your insurance business?

The average UK person spends around £440 a year on car insurance, with around half of those choosing to finance their premium and repay by monthly Direct Debit. The ability to offer a premium finance option has become an essential requirement for many insurance businesses trying to meet customer demand, but the process can still be laborious, requiring additional time and resources to maintain the system alongside the brokers existing back office solution.

Using an integrated premium finance solution saves time. The integration with the back office removes the requirement for brokers to re-key client information on to a separate system when premium finance is selected as the payment method. This helps to reduce data errors and increase operational efficiency.

Offering premium finance as a payment option becomes an easier process in the contact centre too as staff are able to enter details, generate quotes and submit payment information from one system. And as only one system is used, training times for new members of staff are reduced.

Brokers can also expect an increase in finance volumes. Analysis carried out by Premium Credit has shown that switching from re-keying client information via an extranet across to using an integrated solution has helped to increase premium finance volumes at an average rate of 8%*.

By simplifying the premium finance process and offering more choice in payment options for their customers, brokers were able to improve conversion rates, increase customer retention and gain higher customer satisfaction levels.

Quick glance - Benefits of using an integrated Premium Credit solution

  • Reduce training time and cost: no need to learn a second system
  • Increase efficiency and reduce operational cost – save time by removing the requirement for re-keying client data
  • Avoid process errors – reducing the possibility of inputting data incorrectly on a second system
  • A slicker and easier process for staff, improving willingness to offer premium finance
  • Helping to increase premium finance volumes

*This figure is based on YoY analysis of 11 insurance brokers who had processed business with Premium Credit using its PLaSMA system for at least one year before switching to an integrated solution the following year.