Banks are finding remarkable growth in premium finance! Here's how...
Property and Casualty insurance premium financing represents one of the most consistent and profitable areas within asset-based lending. Banks have been capitalizing on this industry for decades because it typically offers better average returns than mortgages, real estate, personal, and commercial loans.
Evolution's innovative marketing methods are designed to give your bank the competitive advantage it needs to gain access to this highly profitable market.
Partner with Evolution and with 45 years of experience behind you, your bank will establish a strong foothold and thrive in this new market.
Is P&C insurance premium finance recession proof?
Will it suffer less compared to your other markets?
One thing for sure is you will have no repossession or foreclosure, and collateral is returned by law with just a simple request to the insurance company.
P&C insurance premium finance is not inherently recession-proof, but there several factors that make it resilient in a recession compared to other markets.
- Essential Demand: Insurance coverage—especially for auto and commercial sectors—is often mandatory. This creates a consistent baseline demand even in tough economic times.
- Cash Flow Solutions: Recessions can increase the appeal of premium financing as businesses and individuals look to spread out payments instead of paying premiums upfront.
- Risk Mitigation: Unlike other lending options, the collateral in premium finance is held by the insurance carrier and will be returned by law upon default. No repossessions or foreclosures in Premium Finance.
- Regulation: Many states require businesses to maintain insurance coverage regardless of economic conditions. This provides a level of market stability for premium finance.
- Consumer credit (auto loans, credit cards, BNPL): These are tied to discretionary spending, which drops fast in a downturn. Defaults also rise sharply.
- Mortgage origination or real estate lending: Real estate markets often cool drastically in a recession, hurting new lending volumes and increasing delinquency risk.
- Capital markets (investment banking, M&A, IPOs): These tend to slow dramatically, as businesses and investors become risk-averse.
About Us
Evolution is the longest standing premium finance software company! 45+ years of consistently establishing the industry benchmarks. We provide premium finance software solutions to companies varying in size and location across the United States, Canada, and Jamaica.
Since our inception in 1979, Evolution's software has seamlessly processed billions of dollars in transactions, managing millions of loans with precision and efficiency. Trust in our proven expertise for seamless financial operations.
Learn how to use our software with the Premium Finance Learning Center, which guides users through the life cycle of loans from start to finish. Also, Evolution has a course designed to teach you Premium Finance 101. Written professionally by an accredited, and certified course writer!
