TRANSPARENCY IS ESSENTIAL TO ENSURE INSURANCE PREMIUM FINANCE CONTINUES TO UNDERPIN CAPITAL & CASH FLOW FOR UK BUSINESSES
Premium Credit underlines its support of brokers following publication of the FCA’s Thematic Review of commercial insurance intermediaries
Epsom, 11th June 2014 – Leading premium finance and funding specialist, Premium Credit, is underlining the support it provides to brokers in response to the FCA’s Thematic Review of commercial insurance intermediaries. Andrew Doman, Chief Executive of Premium Credit believes that insurance premium finance plays a vital role in underpinning the UK economy and, as such, gives brokers an important tool to help their customers. The company, therefore, remains committed to supporting brokers to deliver a transparent and fair service.
“We firmly believe that insurance brokers are focused on giving their customers the most effective solutions for their business”, said Andrew Doman. “Being able to offer choice in terms of funding of insurance cover is an important component, particularly as access to credit for business continues to be a challenge generally. We, therefore, remain committed to supporting brokers in how they promote premium finance to their customers so that they can allay any concerns identified by the FCA.
“As part of our new regulatory responsibilities under the FCA we are, of course, required to take reasonable steps to monitor that our products are delivered compliantly by all our business partners and we are confident that this is being achieved.”
As the regulation of consumer credit and, with it, premium finance has transitioned to the FCA, Premium Credit fully supports the FCA’s goals. Namely that consumers get financial services and products that meet their needs from firms they can trust; that firms compete effectively with the interests of their customers and the integrity of the market at the heart of how they run their services; and that markets and financial systems are sound, stable and resilient with transparent pricing information. Premium Credit believes that it is living up to these goals, as evidenced through its business performance.
In 2013, Premium Credit advanced more than £3.7 billion – an increase from £3.4bn in 2012 - and broke through the 2 million barrier in terms of customers it supports. Andrew Doman believes that Premium Credit now represents around 11.5% of all premiums handled by brokers.
“Enabling consumers and businesses to spread costs, rather than having to pay a full sum upfront, ensures outgoings for important services such as insurance cover, school fees and professional services can be managed” added Andrew Doman.
“Insurers, accountants, IT service providers and even independent schools receive the finance for annualised services upfront in full, giving them cash in the bank. With other options for cash flow management more limited in recent years, I believe this is playing a crucial role in the UK economic recovery. By offering this competitive funding to businesses and consumers, we believe premium finance provides consumers and businesses with more choice, encourages competition and provides solid foundations for continued economic recovery.
“We fully support the proposals outlined in the FCA’s Thematic Review into commercial insurance intermediaries and the management of conflicts of interest” concluded Andrew Doman. “But we believe the benefits that premium finance brings to the insurance market as a whole are recognised. Premium Credit will continue to support brokers in delivering this clearly and fairly to their customers.”