Nearly every loan your bank closes is tied to an unavoidable need: insurance.

• C&I and CRE loans – At least 95% require insurance.
• Mortgages – Insurance is always required by the lender.
• Auto loans – Insurance is required by state law, every time.

Insurance is not optional. It is a recurring, predictable obligation your clients already pay, and it represents a financial opportunity hiding in plain sight.

Next time you are driving past businesses and homes near your branches, remember nearly every one of them is legally required to carry insurance. That means they already have recurring premium obligations covering property, fleets, liability, auto, home, and more.

Look at your bank’s lending clients, they are required to carry insurance and already have a borrowing relationship with your bank. By offering to finance those policies, you tap into revenue from existing clients while helping them preserve liquidity and avoiding them paying their insurance premium all at once.

Key Point: The bank is not selling insurance. It simply finances insurance premiums on policies that clients already arrange with their agents. Any new business or loans the bank originates can also include insurance financing, creating a seamless, all-in-one solution for clients.

• In addition to scaling your current and new business, you can also solicit agents nationwide from day one, offering them a bank-backed insurance premium finance solution with options they have never seen before.
• The agents manages the insurance, while your bank continues to manage the financing as per usual.
• In the long term, this will create a steady stream of referrals, with agents driving passive business to you. Growth becomes scalable and often achieved rapidly.
• With Evolution’s Agent Plans, your bank can keep these agent loyal and ensures the passive business can be maintained with low effort.

Premium finance allows people and businesses to spread out the cost of large insurance premiums over time, like they would with any other loan. For banks, this creates an additional lending opportunity that runs parallel to existing Commercial Real Estate (CRE) and Commercial & Industrial (C&I) relationships. The same clients who come in for significant loans also carry substantial insurance obligations, and those premiums often need financing. By offering premium finance, a bank can capture more of the client’s financial activity, deepen the relationship, and open a new revenue stream without straying from the institution’s core lending expertise.

Can you think of any other asset-based lending where canceling the loan returns unearned premium to protect the lender?

This is not a new, speculative opportunity — it is a proven model that has been generating incredible returns for decades and has served as a cornerstone for successful banking divisions, often kept under the radar for competitive reasons. Today, property and casualty insurance stands as a trillion-dollar-a-year industry, with over $204 million being financed every working day in the United States.

Banks require insurance on a significant portion of their loan portfolio. This requirement creates a natural opportunity for the bank to generate an additional revenue stream that vertically integrates into and scales with their current lending operations. By capturing the financing of insurance premiums directly, the bank can use its existing relationships and infrastructure to grow revenue without increasing risk.

Let us illustrate how this can work using an example:

If you can penetrate 25% of the business you might be doing in this example, you are unlocking a substantial new stream of revenue from dollars already flowing through your portfolio. What follows shows just how quickly these premiums translate into meaningful returns when financed in-house.

Example From a $120M Portfolio

• Portfolio Portion Seeking Financing: $30M (25% of $120M)
• Average Insurance Premium Rate: 10% of loan amount
• Annual Premiums Generated: $3,000,000
• Premium Finance Loan Volume (100% financed): $3,000,000
• Revenue Potential (9-pay average term @ 18%)
• $3,000,000×18%×9/12  =  $405,000

Potential annual revenue by offering PF on existing portfolio: $405,000

That is revenue earned from policies directly connected to loans you already originate, turning an existing requirement into a profitable line of business.

This example is only the starting point. The real scale comes into focus when you consider the insurance agents within 100 miles of your bank who would be eager to place business with a local, bank-owned premium finance company.

The example we just reviewed only reflects revenue potential from financing premiums tied to loans already on your books. However, that is just the tip of the iceberg.

Across your market and in your immediate physical area, insurance agents are writing large insurance policies every day. These agents often rely on third-party premium finance companies to provide financing options to their clients. Most would prefer a financing partner that is:

• Local and Reliable – A bank with a strong community presence and reputation.
• Responsive – Able to provide fast approvals and funding.
• Aligned – Offering competitive terms while keeping relationships close to home.

Within a 100-mile radius of your bank, there are dozens of agencies producing millions of dollars in annual premiums. A bank-owned premium finance company can position itself as the go-to partner for these agents, immediately expanding revenue opportunities beyond your own portfolio.

IMPORTANT – You can also operate nationwide from day one, gaining access not just to the local agent market but to over 174,691+ independent insurance agents.

• Local and Nationwide Agent Market – Produces far more premium volume than your bank’s own portfolio.
• Diversification – Expands revenue sources beyond existing borrowers.
• Sticky Relationships – Agents become ongoing referral partners, strengthening long-term growth while establishing passive income.

• Low Risk, High Reward: Policies secure the loans, with unearned premiums providing natural repayment.
• Revenue Growth: Capture dollars already flowing through your portfolio and expand to agent-driven business.
• Relationship Strength: Deepen ties with borrowers and agents alike, creating long-term referral networks.
• Scalable & Flexible: Start locally, grow regionally, and expand nationwide — your growth is limited only by your ambition.

• One of our clients financed over $1.07 billion in just 13 months, maintaining an impressively low bad debt rate of 0.2358% — a clear testament to the reliability and precision our platform delivers for high-volume lending.
• Another client financed just north of $250 million with thirty-four overall users. We worked remarkably close together with this company to implement a comprehensive marketing strategy into the software.
• Accenture, the world’s largest computer consulting firm, rigorously tested our software for four months, and it processed 270 loans per hour from forty-nine separate users — nearly three times the 100-loan-per-hour benchmark.

This is a rare opportunity for a bank to leverage existing operations, generate a new revenue stream, and become the preferred premium finance partner for agents and borrowers alike. The infrastructure is already in place, and the market is waiting.

Ready to explore how Insurance Premium Finance can fit into your current business model?

Contact Evolution Inc. today to learn more