Premium Financing for Banks

During the last 20 years, banks of all sizes and from all geographic regions have enjoyed the benefits of owning and building an insurance premium receivable. Bank of America, Wells Fargo Bank, BB&T Corp. and Suntrust Bank are some of the better-known companies currently engaged in this vibrant, niche lending business.

A properly managed insurance premium receivable represents a safe diversification option for banks.  It also provides an entree into the robust retail and wholesale insurance agency industry which represents a sizeable universe for cross-selling opportunities.

For banks already in the premium finance business, Input 1 offers a comprehensive set of services designed to optimize the operational efficiency and improve the technology (both internal and client-facing portions) of the business segment - making the asset class safer, more profitable and removing all obstacles for growth.

For banks not currently in the business, Input 1 offers a path to success, involving industry and asset-type education followed by operational outsourcing or software installation and education - together, designed to facilitate entry into the space while building sound business processes.

Please explore these options by clicking on the tabs at the top of this page, which outline our Business Processing Outsourcing and Software Solutions offerings.  We also have a Loan Purchase program whereby we can either (a) originate and sell premium finance loans to your bank while retaining servicing or (b) buy loans from you to free up your capital for further originations or alternative uses.

For a broader overview of this industry or to learn more about our firm and our philosophy, click an item below:

• Knowledge Center (learn more about the premium finance industry)
• Learn More about Input 1

Outsourcing Your Premium Finance Business

Since our inception in 1984, we have provided banks with an outsourcing platform for premium finance receivables.

Banks are natural owners of premium finance businesses as demonstrated by the magnitude of players currently engaged in this industry.

If your bank is considering entrance into the premium finance space, outsourcing is a natural place to start.  In this way, you can enter the business safely without having to make a significant investment in overhead.  More importantly, when we build out a servicing platform for a new banking customer, there is a significant amount of education that comes along with this process.  In conjunction with your management team, we will help establish a set of comprehensive operating procedures used to run the business.  Once the business has reached proof of concept stage, you can either focus on the growth and dedicate your resources to building the portfolio, or if you prefer, you can take the servicing in house.  You always have complete flexibility.

If your bank is currently engaged in this business, outsourcing can free resources so that you can grow your book rather than managing the day-to-day mundane tasks related to servicing it. 

We understand the significant regulatory burden with which banks are required to comply.  Whether it be SAS-70 Level II compliance, OFAC list verification, business continuity planning or customer privacy issues, we are prepared to service your receivable.  Click here for a schedule of services that we offer in the outsourced administration of a premium finance receivable.

Contact Us today to determine if our outsourcing plans can provide value to your organization.

Premium Finance Software for the modern-day bank

Our Premium Billing System ("PBS") software application is an enterprise class, internet-based, insurance premium receivable tracking system.  PBS is the leading insurance premium finance system in the United States and is used by federally and state-chartered banks across the nation.  PBS provides an important balance between streamlining operations to maximize efficiency, maintaining security and data integrity and providing a comprehensive set of online services to customers.

The establishment of customer privacy and data security are critical, non-negotiable requirements for banks.  In response to this, Input 1 hosts PBS at only Tier IV providers which provide SAS-70 Level II compliance.

The reporting systems within PBS are extensive, however data can also be mined out of the system and downloaded into a spreadsheet, removing any limitation on reporting.  PBS provides a feature which imports the US Dept. of Treasury OFAC list in XML format and runs a match against the database of borrowers.

PBS provides online and printed marketing tools that enhance cross selling opportunities for banking products to insurance brokers and customers.  

Through our wholly-owned subsidiary, gotoPremiumFinance.com, we originate and service premium finance loans throughout the United States. With the portfolio we originate and service, we offer banks two valuable business opportunities.

While we warehouse many of our loans, we also sell tranches of loans to banks or other financial instituions that want earning assets on their balance sheet. We adhere to strict underwriting standards and we maintain a very sharp focus on servicing quality. We understand the requirements of banks as they pertain to customer privacy. We understand the level of auditing standards to which banks must respond at both the state and federal levels. We have extensive reporting which is responsive to regulatory inquiry.  If your bank is looking for quality, diversified earning assets, this should be an important consideration.

If your bank has the ability to originate premium finance receivables but is looking to "dip a toe" into the premium finance space before committing assets and/or establishing a servicing capability, we can originate loans on our balance sheet for your customers but brand the lending facility with your name. Much like a private lable credit card (e.g. a college, airline or department store), you can enter the space and be confident that your customers are receiving exceptional service coupled with industry-leading technology. You can earn a spread on the loans that we originate and service under your name and, if and when you decide to put the loans on your balance sheet, we can work with you to set up an outsourcing arrangement or help your staff get started servicing the receivable with our premium finance software.

If you would like to discuss these options in greater detail, please Contact Us.