THE PERSONAL TOUCH

Higher commissions are just one of the benefits that brokers in the personal lines market are currently

Indeed the last few months have already seen one casualty in the form of Can Do disappear from the scene with its acquisition by Premium Credit. Can Do obviously had many internal issues but perhaps one of the key factors in its demise was the fact that it fell behind other rivals in terms of technology.

Technology has transformed the premium finance process for the broker. When Premium First originally launched into the market, we felt we had three major selling points; a user friendly real time system, strong service values and flexibility.

We had responded to a market where brokers routinely suffered bad service, over-complicated systems and a lack of flexibility from some players in the premium finance market. The entrance of new companies into the sector has prompted significant changes.

Increased competition has meant that systems have been updated and premium finance companies are fighting more aggressively for brokers' business, leading to higher commissions and increased flexibility.

One of the biggest news stories at the moment in the sector is the integration between premium finance and software houses. We have recently announced the development of our first integrated premium finance software solution with Misys, enabling brokers to arrange premium finance completely electronically without leaving the Misys system.

The integration of premium finance with software providers is good news for the industry. One of the main bugbears for brokers has been the time it takes to complete applications for premium finance and the extra administration it generates.

This has already been eased by systems such as ours at Premium First which currently provides brokers with the ability to work in a real time environment via the Internet. This has slashed the time it takes to complete an application down to a couple of minutes. With a new integrated system you can offer your clients premium finance in half that time. All the information has already been typed into the system so when you want to arrange premium finance, it's simply a case of inputting bank details and accessing a few scheme codes via drop down windows.

A major growth trend has been the growth in popularity of non recourse options. Non-recourse schemes ensure that the provider will endeavour, in the first instance, to collect payments from customers who have defaulted, freeing up the broker from time consuming administration. Non recourse brings the broker peace of mind. They know that they can benefit financially from premium finance without the fear of having to tie up valuable staff chasing debt.

Time is the common denominator running through all the major trends in the premium finance personal lines market. As brokers of all sizes face unprecedented competition for the consumer's business, the ability to utilise all your resources more efficiently is going to be paramount to the success of your business. Brokers' staff need to be offering excellent service, specialist advice and quick and convenient solutions to consumers, rather than spending hours trying to solve admin problems.

Another area which has resulted from the entrance of newer players in the market, is a different way of working with clients. Companies who are relatively new to the market, have to work harder to gain a broker's business. We come from a culture where you have to ensure your business model is flexible enough to accommodate and encourage every single one of your broker clients' business goals and practices. Many of the smaller, newer companies like ourselves do not apply a onesize-fits-all approach to our business and the increased flexibility of this approach has led to a more tailored approach in general by premium finance companies.

One of the biggest trends that we see in the personal lines market is the willingness of brokers of all sizes to take premium finance seriously. Premium finance can offer a host of benefits to brokers and can be used strategically to solve a variety of problems. As the premium finance industry itself has resolved issues such as speed and efficiency, brokers for the first time are starting to see the benefits of premium finance without having to accept the downsides that inevitably ran alongside it.

Now brokers don't just see premium finance as a way to secure an additional profit stream through high commissions. Brokers are increasingly using premium finance in a different way to ensure that they increase business and retain it long term. This is a trend which is likely to continue as premium finance providers continue to develop products and services which ensure that brokers have all the tools at their disposal to achieve their short and long term business objectives.