The premium finance market has seen considerable growth due to a variety of factors.
• The premium finance market has seen rapid growth in recent years. It is set to increase from $51.37 billion in 2024 to $57.47 billion in 2025, reflecting a compound annual growth rate (CAGR) of 11.9%.
The growth is attributed to the rise in high net worth individuals (HNWIs), expanding luxury goods and services, growing insurance premiums, an increase in real estate investments, and a greater focus on asset protection.
The premium finance market is expected to maintain its strong growth trajectory in upcoming years.
• The premium finance market is expected to grow to $88.88 billion by 2029 at a CAGR of 11.5%.
This growth is driven by higher insurance premiums, the expansion of insurance products, increased credit availability, corporate financing, and wealth management growth. Key trends include digital platform adoption, customized financing solutions, advancements in risk assessment tools, mobile payments, and customer service technology.
The anticipated expansion of non-banking financial companies (NBFCs) is poised to fuel the future growth of the premium finance market. NBFCs are financial entities offering a multitude of banking services without possessing a formal banking license. Factors pushing their growth include regulatory changes and escalating credit demand in underrepresented markets. NBFCs facilitate premium finance through their flexible loans, swift approval procedures, and competitive interest rates, thus rendering insurance more obtainable and cost-effective for policy owners. To clarify, the Australian Bureau of Statistics, a government agency in Australia, reported in June 2024 that net claims on non-financial corporations were divided as follows: $1,426.1 billion coming from financial corporations, $922.4 billion coming from households, $1,147.0 billion from the rest of the planet, and $450.8 billion from the general government. Consequently, the expansion of NBFCs is a significant driver of the premium finance market.
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
Subsegments:
1) By Life Insurance: Whole Life Insurance, Term Life Insurance, Universal Life Insurance, Variable Life Insurance
2) By Non-Life Insurance: Property Insurance, Casualty Insurance, Auto Insurance, Health Insurance, Liability Insurance
Major enterprises in the premium finance sector are creating extensive financial networks to boost their services and make transactions smoother. Financial networks are systems connecting a range of financial services and institutions, enabling better transaction management, data circulation, and communication. This process enhances financial procedures by refining the efficiency, precision, and accessibility of financial services. For example, in April 2024, ePayPolicy, a company based in the US primarily dealing with Insurtech and financial services, rolled out Finance Connect, a sophisticated feature built to simplify premium financing for insurance companies. This feature is fully compatible with existing premium finance company (PFC) partners, provides a variety of payment options, and eases auto-payment and reminders. It bolsters conversion rates and operational efficiency, meeting the rising need for digital and automated financial solutions in the premium finance sector.
Major companies operating in the premium finance market are:
• 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
North America was the largest region in the premium finance market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.