Premium Finance Market Report 2024

This Premium Finance market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The premium finance market size has grown rapidly in recent years. It will grow from $46.08 billion in 2023 to $51.37 billion in 2024 at a compound annual growth rate (CAGR) of 11.5%. The growth observed during the historic period can be attributed to several factors, including the rise in high net worth individuals (HNWIs), the expansion of luxury goods and services, increasing insurance premiums, growth in real estate investments, and a heightened focus on asset protection.

The premium finance market size is expected to see rapid growth in the next few years. It will grow to $79.72 billion in 2028 at a compound annual growth rate (CAGR) of 11.6%. The projected growth during the forecast period can be attributed to several factors, including rising insurance premiums, the expansion of insurance products, increased availability of credit, a rise in corporate financing, and growth in wealth management services. Key trends expected during this period include the adoption of digital platforms, the development of customized financing solutions, advancements in risk assessment tools, the adoption of mobile payment solutions, and innovations in customer service technology.

The anticipated growth of non-banking financial companies (NBFCs) is expected to significantly drive the expansion of the premium finance market. NBFCs are financial institutions that offer various banking services without holding a banking license. Their growth is fueled by regulatory reforms and rising demand for credit in underserved markets. NBFCs facilitate premium finance by providing flexible loan structures, quicker approval processes, and competitive rates, thereby making insurance more accessible and affordable for policyholders. For example, in December 2022, the Financial Stability Board (FSB), a Switzerland-based non-profit association, reported that the NBFC sector grew by 8.9% in 2021, surpassing its five-year average growth rate of 6.6% and reaching $239.3 trillion. This growth in NBFCs is driving the premium finance market.

Leading companies in the premium finance sector are focusing on developing extensive financial networks to enhance their service offerings and streamline transactions. A financial network is a system of interconnected financial institutions and services that facilitate transactions, data exchange, and communication, thereby improving the efficiency, accuracy, and accessibility of financial services. For instance, in April 2024, ePayPolicy, a US-based insurance technology (Insurtech) and financial services company, introduced Finance Connect, an advanced feature designed to streamline premium financing for insurance companies. This feature integrates with existing premium finance company (PFC) partners, offers flexible payment options, and simplifies auto-payment and reminders, improving conversion rates and operational efficiency in response to the increasing demand for digital and automated financial solutions in the premium finance market.

In April 2024, InterPlanetary File System (IPFS) Corporation, a US-based financing company, acquired Stonemark Inc. for an undisclosed amount. This acquisition aims to expand IPFS's client base, enhance its premium finance capabilities, and leverage the combined expertise and experience of both organizations to deliver superior services to the insurance industry. Stonemark Inc., also based in the US, provides premium financing services to insurance brokers and managing general agents (MGAs).

Major companies operating in the premium finance market are JPMorgan Chase & Co., Wells Fargo & Company, Munich Re Group, The Hartford Financial Services Group Inc., Lincoln National Corporation, BNY Mellon Wealth Management, Sun Life Financial Inc., Symetra Life Insurance Company, Valley National Bancorp, Wintrust Financial Corporation, Byline Bancorp Inc., FMG Suite LLC, IPFS Corporation, AgentSync Inc., Parkway Bank & Trust Co., US Premium Finance, PayLink Direct, Succession Capital Inc., ARI Financial Group, ClassicPlan Premium Financing Inc., Agile Premium Finance, Colonnade Advisors LLC.

North America was the largest region in the premium finance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the premium finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the premium finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Premium finance refers to a financial arrangement where a third party, such as a specialized finance company or bank, provides funds to individuals or businesses to cover insurance premiums. This arrangement enables policyholders to spread the cost of their insurance premiums over time, rather than paying the full amount upfront.

The main categories in the premium finance market include life insurance and non-life insurance. Life insurance provides a monetary benefit to the policyholder's beneficiaries upon their death. Premium financing options can involve various interest rates, including fixed and floating rates. Providers of premium finance include banks, non-banking financial companies (NBFCs), and other financial institutions.

The premium finance market research report is one of a series of new reports that provides premium finance market statistics, including the premium finance industry global market size, regional shares, competitors with premium finance market share, detailed premium finance market segments, market trends, and opportunities, and any further data you may need to thrive in the premium finance industry. These premium finance market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The premium finance market includes revenues earned by entities by providing services such as insurance premium loans, premium funding arrangements, risk management consulting, financial advisory, credit risk assessment, and claims management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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