New figures from a major premium funder have highlighted the extent of the recent market downturn, showing that average premiums are currently lower than they have been in four years.
Premium Funding has collated its customer data to reach the figures, which show that upon renewal premiums increased across all bands between 2011 and 2014, before everything other than the sub-$10,000 categories dropping to below 2011 figures this year.
The research found the manufacturing, construction and retail sectors were the most likely to use premium funding, and that operators in transport, property, accommodation and food industries were the most likely to miss payments.
Premium Funding Director Ross Hayward says their research found that only one-third of brokers offered their clients funding options with every contract, which he says is a missed opportunity for commissions.
“It seems to us a large number of brokers are under the assumption that funding can only be offered on larger contracts,” he says.
“This is essentially not true, and a false perception that has lived in the industry for a while. “Offering funding on every contract, regardless of size, may mean increased funding, increased conversion ratios and associated commissions.”
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