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Premium Finance Market Trends

Report ID: GMI10065
Published Date: Jun 2024
Report Format: PDF

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Premium Finance Market Trends

Digital platforms and mobile applications are streamlining the application and approval processes, making it easier for customers to secure financing. Automated underwriting, digital signatures, and real-time payment processing enhance efficiency and customer experience. These technologies also enable better data analysis and risk assessment, allowing premium finance companies to offer more personalized and competitive financing options. The premium finance industry is witnessing significant growth in emerging economies. Insurance penetration is increasing in regions, including Asia Pacific, Latin America, and Africa, and hence there is a rising demand for premium financing solutions.

For instance, in June 2024, PAVO Insurance Solutions partnered with Input 1 to harness its digital payment and financing platform. With a cutting-edge, user-friendly premium finance marketplace that streamlines the insurance transaction process, PAVO Insurance Solutions acknowledged the value in collaborating with Input 1 to enrich its platform by incorporating its quoting marketplace, digital payments, and premium financing seamlessly at the point of sale, ensuring a streamlined process, reduced operational costs, modernization and improved customer satisfaction.

Authors: Suraj Gujar , Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

Industry size for premium finance was USD 52.2 billion in 2023 and is projected to expand at over 10% CAGR from 2024 to 2032, due to the rising cost of insurance premiums in a variety of industries, such as auto, property, and health insurance.

The life insurance type segment in the premium finance industry is projected to record more than USD 75 billion by 2032, led by the increasing awareness about its importance for financial security and estate planning.

The NBFCs provider segment in the premium finance industry may record over 12% CAGR from 2024 to 2032, as they can quickly adapt to market demands and introduce new premium financing products and services tailored to the specific needs of various customer segments.

North America industry recorded over 30% share in 2023 and is estimated to grow at notable rate between 2024 and 2032, on account of the presence of highly developed and mature insurance industry with a significant number of high-value policies.