How to Start an Insurance Premium Financing Company

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Starting an insurance premium financing company always requires you to keep a few very important things in mind. Start an insurance premium financing company with help from the managing partner at an insurance organization in this free video clip.

Part of the Video Series: Business Insurance & Finance
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Video Transcript

Hi, my name is Mitchell Smith, managing partner of Universal Insurance Services and Universal Partners. Today we are going to discuss how to start an insurance premium financing company. Premium financing companies are extremely complicated and have been very popular over the last decade. Popular doesn't always mean good. In the last decade we've seen many premium financing companies go out of business, do things that weren't quite legal. You have to be very careful when you are doing insurance premium financing. I would explore the landscape extremely diligently. I would talk to insurance companies. See what they accept. Most insurance companies will not take premium financing any longer. And if they do the due diligence process is very severe. So building something like this typically is best to be outsourced. Talk to another insurance premium financing company that has been approved by multiple carriers that you believe in, that makes a lot of sense. Again because there's a lot of legality built in. If you are still set on doing it yourself you are going to have to get relationships with major banks. You are going to have to build capital, create marketing, create staff. Create actuarial programs. Go visit with each insurance company to get your product approved. Again, not easy, can be very profitable. But my suggestion is always to outsource and find a good partner. Thanks for watching today's discussion on how to start an insurance premium financing company.

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