Loss of over ￡2 billion premium finance commission income per year for Insurance Age Top 100 UK Insurance Brokers?

Loss of over ￡2 billion premium finance commission income per year for Insurance Age Top 100 UK Insurance Brokers?

We have conducted extensive work on the impact of the disclosure of premium finance commissions and the limitation of premium finance commissions that can be earned by the UK Top 100 insurance brokers from introducing insurance premium finance to their customers.

Insurance Age has stated that the Top 100 UK Brokers have a revenue of at least ￡7.5 billion. We have assumed that they therefore have a GWP of at least ￡40billion. On conservative assumptions, 30% of the GWP is financed and on the basis of the average premium finance commissions across the market we estimate the Insurance Age Top 100 UK Insurance Brokers could lose over ￡2 billion of premium finance commission income per year. This would be a devastating loss for many of those brokers and would break their business models.