Premium Finance Marketing Guide

Premium finance services that are offered to agents are usually almost always completely marketed the same way virtually everywhere. However, the attitude of the individual agent determines the best approach to be used to get that agent and his business.

Here are the seven major areas of competition that are meaningful to the agent:

Rate

If the rate is reasonably competitive, the agent will not usually object. Above $100,000 the competition will become a little more intense. The large premiums are what the biggest premium finance companies compete for.

Down Payment

The standard of the industry is approaching 22 to 25% down for a 9-pay policy and 33% down on a 4-pay policy with both requiring 10-Day Notice of Intent to Cancel. This will keep your debt to collateral ratio ensuring everyone is happy.

Check Release

Release of funds is an important competitive issue for the agent. Some premium finance companies release checks the same day that the contracts are received, and others may wait weeks. In any case, it is currently outside the control of the agent, but some agents enjoy a 30-45-day float period in which the premium must be paid to the carrier.

Flexibility

Agents want to be able to get financing even when the contract falls outside of the routine deal. A rigid approach will drive the business to a different premium finance company that understands and accommodates agency problems.

Service

A key feature of the premium finance business is its accessibility, allowing services to be provided anywhere, without the agent being financially obligated to the premium finance company. At its core, this is a service-driven industry. Since the agent’s primary focus is selling insurance, they typically opt for the path of least resistance when it comes to policy financing. Any complexity or inconvenience in working with the premium finance company will become a significant barrier for the agent.

Loyalty

We have talked to an extremely substantial number of agents that do not like the service given to their customers by premium finance companies. Their perception is the PF company are too quick to cancel since they don’t know the customer the way the agent does. Also, they refuse to be flexible for those that are always good for the money. At any given moment, ten percent of the agency population is not satisfied with their present premium finance company and will give the business to the next individual that walks into the office and asks for it.

Evolution’s Innovative Marketing Methods

Time and time again, we have watched premium finance companies compete for the same business. Most agents can probably recite from memory these repetitive sales pitches. We are changing that by listening to the agent.

Evolutions Agent Plans will cease the competitiveness between companies that try to capture other premium finance company’s agents. Our plans will set a new industry standard. The agent will not “shop” the rate. Thus, increasing the banks profit. Trust us when we say no one else is developing industry techniques like Evolution.