How premium finance can support every insurance broker conversation

For many businesses, the insurance conversation has evolved from finding the right cover, at the right level for the right price to include a discussion about how to pay for it. That is something brokers should be considering- especially given the state of the UK economy, argues Owen Thomas, chief sales officer, Premium Credit.

The 2026 Premium Credit Insurance Index highlights just how important credit has become to the way SMEs fund their insurance.

The Index, based on a nationally representative sample of 1000 adults aged 18-plus and 1000 SME owners and managers, conducted in March this year, highlights just how important credit has become to the way SMEs fund their insurance. Around 90% of SMEs now use some form of credit to pay for one or more insurance policies, compared with 54% a year earlier. The average amount borrowed has also increased significantly.

At the same time, businesses are facing rising insurance costs and more complex requirements. Cyber cover is one example, with many SMEs expecting to increase their level of protection. For businesses already managing tight cash flow, finding a way to spread the cost of insurance can therefore be an important consideration.

This is where I believe brokers have an opportunity to add more value.

Make finance part of the conversation

Premium finance has traditionally been something discussed when a customer says they cannot afford to pay their premium upfront.

But does a customer need to be experiencing financial difficulty for finance to make sense?

Absolutely not.

A business may prefer to keep cash available for investment, payroll, stock or other working capital needs. It may have several policies renewing at the same time. Or it may simply prefer the predictability of regular payments.

That is the thinking behind Premium Credit’s 100% Offer: make premium finance part of the conversation with every customer and allow them to decide whether it is right for them.

It is about choice, rather than pushing finance where it is not wanted.

There is also a wider consideration for brokers. The 2026 Insurance Index found that 42% of SMEs believe their level of underinsurance could increase over the coming year.

The priority will always be making sure customers have appropriate cover. But if affordability is influencing the level of protection a business takes, spreading the cost could provide another option.

Look at the value of the cash

There is a wider business principle at work here.

Most business owners think carefully about how they use their capital. They might finance a vehicle fleet or machinery rather than tying up all their cash in one purchase. The same thinking can apply to insurance.

Paying a premium upfront may be the right choice for some businesses. For others, retaining that cash and paying in instalments may allow it to be used more productively elsewhere.

That is where measures such as Return On Capital Employed (ROCE) can form part of a useful conversation. Brokers do not need to become financial advisers, but they can help customers understand that there is more than one way to approach the cost of insurance.

Let’s talk about it at Broker Expo

These are exactly the sorts of issues we want to explore with brokers at the upcoming Insurance Age Broker Expo.

The team from Premium Credit will be there to talk about our 100% Offer, how premium finance can fit more naturally into the customer journey and the practical support we provide to help broker teams have confident conversations about finance.

If you are attending, come and meet the Premium Credit team. We’d be very happy to hear how you are approaching premium finance today, share what we are seeing across the market and discuss how our 100% Offer approach could work for your business.

The customer can only choose finance if they are presented with the option.

Come and talk to us at Stand 63.

Sign up to attend the Broker Expo on 8 October at the Birmingham NEC

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