Who are the players is insurance premium finance?

Point of Sale - The Insurance Agent

Agents work directly with clients to understand their insurance needs and recommend appropriate coverage. They serve as the initial point of contact in structuring policies that can later be financed.

No one owns the point of sale, the insurance agent. Which means any bank or premium finance company can lose market share to regional banks that deal directly with agents.

Insurance Carriers

Insurance carriers play a crucial role in the premium finance industry by providing the policies that premium finance companies use as collateral for their loans.

Insurance companies are rated by A. M. Best, Moody’s, and Standard and Poor’s among others. These ratings describe the financial strength of an insurance company. A.M ftware can’t work in this industry. Exactly why Evolution has been the leader in the premium finance software industry for more than four decades.

Banks

Initially perceived as mere lenders to the premium financing sector, banks dominate the industry, controlling nearly 70% of all premium financing transactions in the United States.

Texas Capital Bancshares, Inc. closed the sale of Bank Direct Capital Finance LLC (one of our customers) its insurance premium finance subsidiary, to AFCO Credit Corporation, an indirect wholly owned subsidiary of Truist Financial Corp. Bank Direct had a premium finance loan portfolio of approximately $3.4 billion. (11/2022)

Finders-Keepers – Taking Agents

1. How can we get the agents to flock to the bank and keep them loyal to the bank?
2. How can you best serve agents and develop loyalty while increasing bank assets?

   The answer is to provide a competitive service that no other premium finance company can offer, a service that allows the agent to make money that the agent’s current finance company cannot match.

   Evolution’s Agent Plans are the answer!

A recent article in an insurance industry magazine reports that there are over 174,691 licensed insurance agents in the United States.

See https://www.zippia.com/licensed-insurance-agent-jobs/demographics/>