Our premium financing is changing across all our commercial lines products.

In an evolving regulatory environment, we’re always looking for ways to simplify things. With this in mind, we’re letting you know about some changes we're making to our commercial lines premium credit facility. It means we’ll be better placed to give you the straightforward, sustainable and streamlined service offering you need, for you and your customers.

What’s happening?

From the 1 March 2022, we will be changing how we facilitate premium credit finance across our commercial lines products. This change impacts new business and renewals from the 1 March 2022. It’s as a result of changes that have happened in the market.

• New business - We will no longer be offering premium credit financing on any of our Commercial Lines products for cases incepted on or after 1 March 2022.
• Renewals – Any cases that aren’t currently on premium credit financing, cannot be transferred at renewal. However, after 1 March 2022 we will still be offering premium credit financing for existing renewals on our Commercial Lines products at 0% APR. We’ll transfer any cases that renew on or after 1 March 2022 from 7% to 0%, and there’ll be no change for any cases already on 0% (they will simply continue at this rate).
• Mid-term adjustments – All existing arrangements will continue as they are, until the case goes through renewal.

Our target effective date for all renewals to move to 0% is 1 March 2022. However, as renewals are invited in advance there will be some cases due in late January 2022 and February 2022, which are undergoing negotiation, that will convert from 7% to 0% in this period.

The overlap is unavoidable, due to renewal lead in times and system capabilities. However as the impact on these policyholders is positive we trust that any inconvenience caused will be minor.

We understand this may disrupt things for you and the small number of customers who have signed up to our premium financing option. We’re sorry about the inconvenience.

We’ve added an endorsement to our TOBA with you in respect of this change. Click on the link below to view the TOBA endorsement - please ensure the appropriate person within your organisation is aware of and reads the endorsement carefully. We’ll leave you to choose how and where you store it, alongside your copy of our TOBA.