The premium finance market size has also seen substantial growth in recent years, expected to rise from $46.08 billion in 2023 to $51.37 billion in 2024, at a CAGR of 11.5%. The historic growth has been driven by the increase in high-net-worth individuals (HNWIs), the expansion of luxury goods and services, rising insurance premiums, growing real estate investments, and a heightened focus on asset protection. Looking ahead, the market is projected to grow to $79.72 billion in 2028 with a CAGR of 11.6%. This growth in the forecast period can be attributed to factors such as increasing insurance premiums, the expansion of insurance products, improved availability of credit, corporate financing growth, and advancements in wealth management services. Key trends expected to shape the market include the adoption of digital platforms, development of customized financing solutions, enhancements in risk assessment tools, mobile payment solutions, and advancements in customer service technology.
Global Premium Finance Market Key Driver
The expansion of non-banking financial companies (NBFCs) is anticipated to boost the premium finance market in the upcoming years. NBFCs refer to financial institutions that provide various banking services without holding a banking license, and their growth is driven by regulatory reforms and increasing demand for credit in underserved markets. These companies facilitate premium finance by offering flexible loan structures, quicker approval processes, and competitive rates, making insurance more accessible and affordable for policyholders. For instance, the Financial Stability Board (FSB), a Switzerland-based not-for-profit association, reported in December 2022 that the NBFC sector grew by 8.9% in 2021, exceeding its five-year average growth of 6.6%, and reaching a total of $239.3 trillion. Therefore, the growth of non-banking financial companies (NBFCs) is propelling the premium finance market forward.
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Global Premium Finance Market Segments
The premium finance market covered in this report is segmented –
1) By Type: Life Insurance, Non-Life Insurance
2) By Interest Rate: Fixed Interest Rate, Floating Interest Rate
3) By Provider: Banks, Non Banking Financial Company (NBFCs), Other Providers
By Geography:The regions covered in the premium finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
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.
Major Premium Finance Industry Players
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
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Premium Finance Market Overview
Premium finance refers to a financial arrangement where a third party, typically a specialized finance company or bank, lends funds to individuals or businesses to pay for insurance premiums. This arrangement allows policyholders to spread out the cost of their insurance premiums over a period of time, rather than paying the entire amount upfront.
Premium Finance Global Market Report 2023 provides data on the global premium finance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The premium finance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
