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The British Insurance Brokers’ Association (BIBA) has launched a guide for members that arrange premium finance for customers.
It was announced during the BIBA Conference 2024, which is taking place in Manchester from 14-15 May.
The new guide aims to assist members in demonstrating fair value in premium finance provision.
The guide outlines the regulatory responsibilities of brokers, what they must disclose, and some helpful considerations for providing premium finance.
According to the organisation, there can be substantial benefits for both consumers and businesses in spreading the costs of their premiums over the year.
Graeme Trudgill, BIBA CEO, says: “Premium finance helps customers who, for whatever reason, prefer not to pay their premiums up front. However, there are costs to doing this. This guide helps to explain how premium financing works and why customers may need to pay more to spread their payments.”
David Sparkes, BIBA regulation director, explains: “We wanted to give members the confidence to show that they are offering fair value to their customers when suggesting premium finance products.
“We hope that once customers understand the costs incurred by the lenders in offering the finance and the work done by the broker in offering and managing the service throughout the life of the loan, they will see the value such arrangements bring.”
