Premium Finance Market Report 2026

The premium finance market size has grown rapidly in recent years. It will grow from $57.13 billion in 2025 to $63.76 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to expansion of life and non-life insurance markets, rising insurance premium costs, increasing use of leverage in insurance planning, growth in high-net-worth individuals, availability of specialized finance providers.

The premium finance market size is expected to see rapid growth in the next few years. It will grow to $98.4 billion in 2030 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to increasing demand for customized insurance financing, expansion of digital insurance ecosystems, rising focus on liquidity management for policyholders, growing adoption of fintech-enabled premium finance platforms, increasing integration with insurers. Major trends in the forecast period include increasing adoption of structured premium financing solutions, rising demand for flexible insurance payment options, expansion of digital policy financing platforms, growing use of automated credit assessment, enhanced focus on high-value policy coverage.

The growth of non-banking financial companies (NBFCs) is expected to drive the expansion of the premium finance market in the coming years. NBFCs are financial institutions that provide various banking services without the need for a banking license. The rise of NBFCs is fueled by factors such as regulatory changes and the increasing demand for credit in underserved markets. NBFCs contribute to premium finance by offering flexible loan structures, faster approval processes, and competitive rates, making insurance more accessible and affordable for policyholders. For example, in June 2024, the Australian Bureau of Statistics, an Australia-based government agency, reported that net claims on non-financial corporations were distributed as follows: $1.42 trillion from financial corporations, $922.4 billion from households, $1.14 trillion from the rest of the world, and $450.8 billion from the general government. As a result, the growth of 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 IPFS Corporation, US Premium Finance, Agile Premium Finance, ClassicPlan Premium Financing Inc., ARI Financial Group, PayLink Direct, Succession Capital Inc., BankDirect Capital Finance, First Insurance Funding, Capital Premium Financing, AFCO Credit Corporation, FIRST Insurance Funding of Canada, Imperial PFS, Standard Premium Finance, Royal Premium Finance, Northpoint Commercial Finance, Gulf Coast Bank Premium Finance, First Southern Bank Premium Finance, Community First Bank Premium Finance, Oak Street Funding, Stonegate Insurance Premium Finance, Beacon Funding.

North America was the largest region in the premium finance market in 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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