Every broker understands that there are advantages to making comprehensive payment solutions available to clients in need of financing for insurance policy premiums. Which is exactly why South Western Insurance Group Limited has partnered with First Insurance Funding of Canada for more than five years.
As the company’s premium payment plan partner, First Insurance Funding provides tremendous financing value in terms of:
- competitive rates,
- pre-approved terms, and
- flexible payment options
And as South Western Insurance Group Limited’s accounting manager Phyllis O’Reilly suggests, “The biggest benefit for brokers is the fact that the First Insurance Funding of Capital plan allows the insured to pay their policy over a period of time, rather than as a one-time payment upfront.”
So how does the premium payment plan work?
“When our underwriters deliver an insurance quote,” O’Reilly explains, “they can also advise brokers on what the monthly payment amount would be through First Insurance Funding. By inputting the premium into the First Insurance system, we can provide a payment plan quote that also includes First Insurance’s financing fee.”
According to O’Reilly, once a payment plan contract has been signed and a void cheque received from their client, the broker simply submits everything to First Insurance Funding for approval.
The policyholder is required to make a down payment that will serve as a minimum retained premium in the event that the policy is cancelled mid-term, but that can either be made payable to the brokerage, or collected by First Insurance upon receipt of the signed contract. Either way, once the financing details have been finalized, First Insurance will forward the approved funds directly to the broker.
While the bulk of these dealings are strictly between broker, policyholder, and First Insurance Funding of Canada, South Western Insurance Group Limited’s underwriters are kept fully informed regarding financing approvals.
“Our payment plan partner advises us each time an insured’s financing is accepted and confirmed,” says O’Reilly, “and our brokers settle their accounts directly with us. So while our brokers will remit the full amount of the policy payment to SWG, the insured will settle monthly with First Insurance Funding.”
O’Reilly recognizes that some brokers may already have a financing company they prefer to deal with. But if not, the First Insurance Funding of Capital payment plan is a great option. South Western Insurance Group Limited’s partnership with First Insurance means brokers can offer their clients more choice and convenience when it comes to funding insurance policy premiums. And that translates into an important advantage where differentiating services and retaining valuable customers is concerned.