FINANCE ASSIST
Finance Assist provides brokers with a clear, customer-centric solution that protects both policyholders and their insurance book, while demonstrating alignment with FCA expectations.
Finance Assist is an optional add-on product available to customers at the point they choose to pay for their insurance via premium finance.
It provides peace of mind by covering premium finance repayments if a customer cannot meet them due to:
Accident
Sickness
Unemployment
This ensures that customers can keep their insurance policy live during difficult times without falling into
arrears or losing cover.
Why Now?
The FCA’s recent Premium Finance Market Study (2024–25) highlighted key concerns that make Finance Assist a timely solution:
Fair value under scrutiny – Nearly 20% of customers are paying APRs of 30% or more, and choosing monthly instalments typically costs 8–11% more than paying upfront. The FCA noted this disproportionately impacts vulnerable and lower-income customers.
High reliance among financially stretched groups – 79% of adults in financial difficulty have used premium finance, showing how essential (but risky) it is for these customers.
Regulatory warning on pricing practices – The FCA criticised “double dipping” (charging higher premiums as well as high APRs) and expects firms to justify pricing objectively and fairly.
Consumer Duty obligations – Since July 2023, firms must demonstrate good outcomes, particularly in ancillary products such as premium finance.
Broker protection – While bad debt in premium finance is lower than other credit types, brokers on recourse payment terms still face material risk. Finance Assist helps mitigate this.
Customer Benefits
Continuity of cover – customers stay insured when they need it most.
Financial resilience – reduces the risk of debt escalation caused by unexpected life events.
Choice and control – an affordable, simple, optional add-on offered transparently at point of sale.
Peace of mind – reduces worry around losing protection due to missed finance payments.
Broker/Lender Benefits
Improves persistency – policies stay live, reducing lapses and cancellations.
Addresses bad debt – lowers exposure on recourse terms with premium credit providers.
Positive customer outcomes – directly supports Consumer Duty obligations by protecting vulnerable or financially stretched customers.
FCA-aligned – demonstrates proactive action to support fair value and reduce harm in premium finance arrangements.
Commercial opportunity – generates incremental ancillary revenue while delivering genuine customer value.