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The ongoing challenge facing the industry

Brokers / 15th January

As we say goodbye to 2020 and step into 2021, you may be excused for feeling that not a lot has changed. And you’re not the only one. With England and Scotland put back into stricter lockdown restrictions, a new strain discovered and coronavirus cases soaring, January has not been the fresh start many had hoped for.

Along with many others, the insurance industry and wider financial services sector has been hit hard, with many struggling to grapple with the continued impact on their businesses. We have seen in recent news that around 4,000 UK financial services firms are at increased risk of financial failure due to the impact of the coronavirus pandemic, according to a survey conducted by the Financial Conduct Authority.

These are indeed worrying figures and those most affected are small and medium sized firms, approximately 30% of whom are poised to cause customer detriment should they fail. The survey also noted that insurance intermediaries and brokers saw available liquidity drop 30%. Payments and e-money firms and investment management companies suffered 11% and 2% falls, respectively.

This is a timely reminder for us all to ensure we are doing all we can to look after our cash flow and serve our customers throughout this time. Providing finance to your customers helps to relieve the worry of paying the big premiums in one lump sum and manage cash flow at a time when financial worries are at an all-time high.

At Premium Credit, we have:

  • Created a forbearance process to support our customers who are adversely affected by Covid – relieving immediate pressure to make payments and enabling them to plan their finances effectively
  • Shifted our learning and development focus from in-house training to remote training – regularly creating brand new material as well as updating existing material with the latest facts, information and guidance
  • Successfully transferred our entire workforce from our Leatherhead office to their homes in an effort to reduce risk to staff and maintain the integrity of our operations
  • Continued an open dialogue with our partners, providing weekly newsletters alongside more specific communications to keep you up-to-date and informed

To find out how premium finance can help your customers, we’d encourage you to contact your account manager to discuss.