Insurance Premium Finance: how difficult is the setup process?

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Although the Fulcrum group of companies has been the leading provider of Premium Finance before the pandemic hit, the pandemic brought to light how effective this solution really is.
This is because it’s built to be a financing solution for businesses during tough timesSince the pandemic hit, businesses have had to pay higher insurance premiums, all while their cash flow and turnover has decreased. This means that they’re going to require premium finance now more than ever, and need the specialist assistance that comes with this.

In our latest news posts, we’ve zoomed in on the benefits of Premium Finance for both brokers and businesses, but you may still be asking yourself: how difficult is the process of setting up Premium Finance – and how much paperwork does the process involve?

The simple, 3-step process

STEP 1

As part of annual renewal or new policy discussions, the broker quotes the client (the insured) an annual insurance premium and discusses the benefits of premium financing as an option. If the client is interested, the broker – or the insured – contacts a premium finance provider for a quote. In order to provide a premium financing quotation, the following information would typically be required:
  • Client information sheet.
  • Audited financial statements (At Fulcrum we only require statements if annual premiums total more than R1 million. We are also happy to quote without audited financial statements, but our quotation would then be subject to credit approval).
  • A detailed breakdown of the premium.

STEP 2

If the client is happy with the quotation, we would then draw up the documentation, which is really simple and easy to understand, and send it through for signature.

STEP 3

Once activated, we would collect the instalments due and pay the premium to the insurer or broker in line with the policy requirements.

At the end of the day, premium financing is an option that benefits brokers, insurers and policyholders alike. The set-up process is hassle-free, with minimal admin and paperwork required.

Our long-standing relationships with our brokers and clients are built on trust, service and expertise that is unparalleled in South Africa’s Premium Finance industry. It’s why we’re trusted to finance more than R800 million in premiums every year – a reflection of our values, efficiency and service.

With Fulcrum, the process of initiating a Premium Finance facility takes no more than 24 hours, so chat to us today to find an optimal solution.

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