Underwriting Large Accounts – The PFB Power Play
When it comes to premium financing, working large accounts can be very different from working smaller accounts. Here we share some tips on how you can effectively handle large accounts and introduce you to the PFB Power Play.
The PFB Power Play is a team of industry experts that help secure the best possible outcome for your client. We will do a thorough evaluation of the credit risk, insurance policies and any other mitigating factors that determine the amount of exposure a finance company may be willing to assume.
The first tip is not unique to large accounts (those accounts generally over $100,000) but it becomes even more important when working on them and that is to ensure you have all of the policy information accurate and complete. Having accurate effective and expiration dates, a breakdown of premiums, taxes, fees and minimum earned premium percentages or amounts will be essential in obtaining an accurate premium finance agreement. Other policy specific details like if there are any seasonal or hurricane earning provisions, if an auto related policy has filings or if a work comp policy is guaranteed cost coverage or not should be disclosed when requesting the premium finance quote.
The next tip is to inquire with your insured if financial statements are available in case the finance company requests them as part of their underwriting process. This can help manage the client’s expectations that they may be needed as part of the underwriting process. If complete audited financial statements are not available, unaudited statements, internally compiled income statements and balance sheets and even more basic profit and loss statements may be helpful for the loan underwriter.
The final tip is to be sure to understand what loan terms may be best for your client. Some clients may need a low down-payment while others may benefit more from an additional installment or a customized payment schedule to meet certain operational or cash flow needs. Talk with your clients about this. Understanding your client and discussing their needs with your premium finance partner during the submission process can make the difference in getting the best premium finance quote for your client or not and possibly writing the client or not.
In summary, be sure you have all the account information and detail available when beginning the process of obtaining a premium finance quote for your large accounts. The process and end result will be smoother and more productive for you. We at Premium Finance Brokerage have large account expertise for accounts in all industries and we are ready, willing and able to help you when your next large account arises. Please feel free to contact us for assistance at 866-381-6501 or info@premiumfinancebrokerage.com.