Helping brokers show fair value in premium finance arrangements
The British Insurance Brokers’ Association (BIBA) has launched a guide for members that arrange premium finance for customers.
The new guide, launched today in BIBA CEO, Graeme Trudgill’s BIBA Conference address, aims to help members demonstrate fair value in the provision of premium finance.
There can be substantial benefits for both consumers and businesses in spreading the costs of their premiums over the year. Using this guide in conjunction with the Fair Value Assessment Framework produced by economics consultancy, Oxera, for BIBA, will give additional support to members in demonstrating fair value on the work they do as credit brokers when arranging premium finance.
BIBA CEO, Graeme Trudgill 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.”
The guide highlights brokers’ regulatory obligations including what needs to be disclosed alongside some useful points to consider when offering premium finance.
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.”
The guide is available to BIBA members online.
ENDS
Notes to editors
Contact us for a private copy of the guide.
For further information please contact:
Leighann Forsyth, Deputy Head of Communications
07917 738727
forsythl@biba.org.uk
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About the British Insurance Brokers’ Association
The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.
BIBA membership includes around 1800 regulated firms, employing more than 100,000 people. General insurance brokers contribute 1% of GDP to the UK economy; they arrange 77% of all general insurance with a premium totalling £105.5bn and 94% of all commercial insurance business. Insurance brokers put their customers’ interests first, providing advice, access to suitable insurance protection and risk management.
BIBA receives hundreds of thousands of enquiries per year to its Find Insurance Services, online and via the telephone, which are directed to insurance broking firms.
BIBA is the voice of the sector advising members, Government, regulators, consumer bodies and other stakeholders on key insurance issues.
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