The construction and manufacturing sectors are the most likely to rely on credit to help pay for insurance, new analysis from the UK’s leading premium finance company, Premium Credit, shows.

Many SMEs and corporates are borrowing more to fund business insurance with owners most likely to rely on credit cards, new research1 from the UK’s leading premium finance company, Premium Credit, shows.

The Premium Credit Insurance Index is a unique ‘market barometer’ for the insurance sector. The Index outlines the changing buying trends for both domestic and commercial insurance and the use of credit to buy cover.

Insurance customers are increasing the amount they borrow so they can continue to afford cover as the COVID-19 crisis squeezes household finances, new research1 from the UK’s leading premium finance company, Premium Credit, shows. Premium Credit’s research found that over the past year, 16% of people have borrowed more to help pay for their insurance cover, compared to 6% who have taken on less credit or the same amount. Of those people using credit, on average they have borrowed £598 extra over the previous year to pay for their insurance needs, Premium Credit’s Insurance Index study found.

As BIBA’s only accredited Insurance Premium Finance provider, Premium Credit continues to support its broker partners and their customers during these unprecedented times. During the 2021 Virtual Conference we look forward to outlining our latest, award winning premium finance solutions. In a time when strong cash flow is critical, premium finance provides increased access to valuable insurance cover at the right level, at the right time and in an affordable manner. Premium finance takes away the need for brokers’ customers to pay for cover in one large lump sum, allowing them to spread the cost of annual insurance premiums over convenient monthly payments, freeing up cash so it can be spent in other important areas.

Invoices to meet the £78 million supplementary levy to cover compensation costs for the Life Distribution and Investment Intermediation class are now being sent to regulated firms by The Financial Services Compensation Scheme (FSCS). The FSCS is helping smaller firms (with a supplementary levy bill of less than £10k), by giving them 90 days to pay, with all other firms having 30 days to pay the levy. Businesses wishing to pay the levy in instalments can do so by partnering with a specialist provider. We predict that increasing numbers will consider spreading the cost.