Insurance Carriers

A successful insurance carrier premium finance program consists of a few core components.

  • First your distribution partners have to embrace it as an viable option to your existing payment plans
  • Second it has to be easy and have sufficient integration to deliver the service
  • Third the program has to have great on-going account payment servicing and value to insured’s (link)
  • Fourth the carrier must be able to maximize sales and operational performance


Program Options:

  • Xpress Capital branded program with revenue share
  • Carrier branded program with or without carrier premium finance captive
  • Premium Finance joint venture blending servicing and capital needs



Organizational Impact:


Sales –

Distribution partners want more payment options to offer their clients.

  • Depending on the product type, a lower down payment and extended payment term may be the difference between selling a policy or not.
  • It is also known that a insured may consider a higher priced policy if that policy provides them with a lower acquisition cost and payment convenience.
  • Distribution partners will place more business with a carrier who pays commissions when the premium is paid-in-full.
  • For convenience policies can also be bundled on one payment plan to provide  aggregate payments and better terms for insured’s which may be using multiple carriers.



Operations –

Carriers can benefit from offering premium financing as a payment alternative or option to existing payment plans. Operationally, premium financing can significantly reduce the cost associated with servicing a policy. In the process, the majority of the servicing is facilitated by Xpress Capital, including;


  • Originating the agreement
  • Booking the loan
  • Funding the carrier the full premium
  • Collecting ongoing installment payments
  • Managing collections
  • Managing the notices;
    • Shortage
    • Letter of Intent to Cancel
    • Cancellation
    • Reinstatement
    • Commission Payments to the Agent


Carriers are left to process a single ACH payment from Xpress Capital and apply it to the account. The only additional administrative cost is incurred during the endorsement or cancellation process.


Finance –

Carriers can also benefit financially by bolstering profit and lost and balance sheets.

  • Increased sales revenue – more options, commissions paid up-front equals more sales
  • Increase profit margin per policy – same price with lower servicing costs
  • Premium paid in full at policy origination can positively impact several areas of your balance sheet including;
    • Cash flow
    • Short term borrowing costs
    • Investment income
    • Lower collection costs and write-offs
    • Re-Insurer costs



Contact Xpress Capital and receive real-world examples of how our programs have benefited our clients.