General Insurance Article - Brokers expect large rise in use of credit to buy insurance


New research reveals the insurance intermediary market expects clients to make greater use of credit this year when it comes to buying their cover.

 The findings are from Premium Credit, the UK’s leading premium finance company, and show that 50% of insurance brokers anticipate the amount of credit used to buy general insurance in 2019 will be higher than the amount used last year, and only 3% anticipate it will be less. The corresponding figures for commercial insurance are 65% and 3% respectively.

 In terms of the credit facilities used, 66% of insurance brokers anticipate clients will make greater use of premium finance this year when compared to 2018. The corresponding figure for credit cards is 42%.

 When asked why they believe clients will use premium finance more this year, 58% said it was because disposable incomes for clients are falling so they are more reliant on credit. This was followed by 32% who said the cost for insurance products is increasing. Nearly a third (29%) said it was because premium finance is becoming better understood by clients.

 Nearly one in four (23%) insurance brokers interviewed expect to see a double digit percentage increase in the number of premium finance policies they sell this year when compared to 2018.

 More than half (55%) of insurance brokers interviewed for Premium Credit said that, in 2018, more than 30% of the general insurance policies they sold were bought using a form of credit, and this rises to 74% for commercial insurance sales.

 Adam Morghem, Strategy and Marketing Director at Premium Credit said: “These findings suggest that people and businesses are making greater use of credit vehicles to buy their insurance cover- though we know that many are not using premium finance.
   

Back to Index


Similar News to this Story

Over 5m either a Covid19 scam victim or knows someone who is
One in ten (10%) UK adults (5.2 million people) have either fallen victim to a financial scam since the Covid-19 pandemic, or knows someone who has, a
Insurer reports spike in wildlife being hit on roads
Admiral reports spike in wildlife being hit on the roads during lockdown, with deer top of the list of animals being involved. Most common types of ac
New report says that brokers hold the key to cyber growth
Insurance brokers have a critical role to play in addressing adequate coverage and a range of other factors holding back growth in the cyber insurance

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.