Agents Don’t Have To Fear Premium Financing Anymore
Premium financing allows customers to make monthly payments on their premiums, so insureds do not have to pay the entire annual premium upfront. Some agents aren’t fond of this option because they feel it is less profitable to them, but this is not the case, and agents have nothing to fear.
The reality is that agents and brokers can profit from owning their own premium financing subsidiary, so it’s better to proceed with this option instead of giving this business away. Agents can and should start their own premium financing company because they will earn higher profits from this operation while providing clients with the convenience of making payments over several months as opposed to one big payment up-front. It is a win-win situation for everyone involved, and agents will see higher profits as a result.
Launching this type of company may seem like a difficult thing to do, and while there is a lot of work involved, the benefits are definitely worth the effort. If you don’t have your own premium financing company, agents will not earn much, but owning your own company will allow you to reap the benefits of this additional profit, and you will also be able to offer your customers the option of paying over a longer period of time, so you will see better results and higher earnings. If this seems complicated, you will be happy to know that there are systems that can help with the licensing process and will also provide you with the necessary forms and computer programs that are needed to get your premium financing function up and ready-to-go.
Once your company is running properly, an agent will be able to go online using that system and will be able to submit a finance agreement that will go right to their own premium finance company. Such systems will also take care of the backend work, will help with administration tasks, bookkeeping and management functions, so your agency will not need to hire any additional staff, nor will you need any additional equipment, so there really is nothing to fear. In the end, the process is actually quite simple, and the system that is in place will provide you with monthly management and accounting reports so that the owners of the premium finance company are aware of the operations.
The premium finance company that your agency uses will have the same telephone number and address as the system that was implemented, so borrowers will interact directly with that team and not your agency staff, so they will be able to focus on their daily responsibilities.
If you need more information regarding premium financing, US Insurance Fundings can provide you with additional details. We are one of the top finance companies in the Houston area and are experts when it comes to premium insurance and affordable rates, so if you’d like to learn more, contact us today!