FCA ready to pounce on premium financing if it finds ‘harm’

Industry is worried the regulator is gearing up to attack premium finance, a vital source of revenue for brokers and insurers

The FCA has warned it is ready to intervene on premium financing - but only if it finds harm to the customer.

Amid its latest crackdown on credit lending, this time in car finance, the FCA said: “We are aware that DiC and similar commission models exist in other markets (for example, asset finance and premium finance).

”We do not currently have evidence to justify consulting on banning particular commission models in those consumer credit markets.

”However, if we identify evidence of harm in other markets, we will consider further interventions.”

 

Bexhill is warning brokers should act now on premium financing.

Bexhil co-founder Ravi Takhar said: ”The FCA is saying quite clearly that brokers adding commissions of an unreasonable nature to their net rates or their lenders should be banned.”

 

Original article was posted on Insurance Times. You can read it here.

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