The future of premium payments

How COVID-19 paved the way for easier payments; less risk to the broker

As Canada prepares itself for a possible third COVID-19 wave, brokers are facing the reality of trying to manage the economic impact on themselves and their clients.

Several brokers have noted how their small to medium sized business clients, in particular, have been hardest hit by provincial shut downs as a result of the pandemic. According to a survey by the Canadian Federation of Independent Businesses released in April last year, over 70% of such businesses reported a drop in revenue of 30% or more due to the shutdowns.

Increased financial stress on clients and brokers and measures to curb the spread of the pandemic, like social distancing and temporary office closures, has left brokers wondering how to protect their own receivables and find ways to make it easier for their clients to pay their insurance premiums.

More than ever before, brokers are turning to premium financing to mitigate financial risk and help clients pay their insurance premiums, explains Nancy Babeu, Regional Sales Director at Primaco, a national premium financing company based in Montréal. “In addition to the economic stress on both brokers and their clients, the notion of administering in-person payments and cheques at a broker’s office has become challenging,” says Babeu. “Since the pandemic started, we’ve seen an uptake in brokers making use of alternative payment options that we offer, such as premium financing, credit card payments and one-time electronic payments. With premium financing, we take on that financial risk so the broker can focus on what is most important: getting their clients the right coverage.”

Primaco uses a state-of-the-art payment portal that offers electronic payments from anywhere, anytime, at the click of a button or tap of a cellphone screen. “This eliminates payment delays and removes the need for in-person payments, saving the broker time on what’s currently a very admin-heavy process,” Babeu explains. “Through our technologically advanced solution, premium payments become hassle-free, quick, easy and efficient for brokers. The broker simply logs into the Primaco portal, selects premium financing or any of our other payment options they’d like to set up and an email is sent to the client to e-sign the contract. It’s a fast, seamless, paperless, convenient and efficient customer experience for both the broker and their client.” Whether brokers sell personal or commercial lines, Primaco, which prides itself in being a 100% Canadian company, can offer them ways to manage their accounts receivables, contracts, renewals and payment options in the blink of an eye.

A broker-focused solution While Primaco strives to stay at the forefront of new technology and payment solutions, the broker’s needs always remain top of mind in everything the company does. In fact, Babeu adds, Primaco’s tech-savvy portal was built with broker input to ensure it meets broker needs. “We’re in the business of building lasting relationships with our brokers. We don’t consider ourselves just a premium financing company – we’re a payment solutions company. Our goal is to be flexible, fast and to always find innovative ways to offer new, better, faster solutions.”

That’s why Primaco is excited to announce it will be rolling out integration with EPIC during April. “Brokers using this BMS will experience the benefits of seamless integration with Primaco’s payment portal, a solution many brokers have been asking for.” In addition stay tuned, Babeu says, as Primaco will be introducing new innovative payment solutions within the next year.

“However long COVID-19 and its effects are still around,” Babeu says, “It’s clear that customers need easier, faster, better, more convenient payment options and solutions that can be completed at the click of a button, from the comfort of their own home. With Primaco’s offerings, brokers can stay on top of economic and technological changes in these unprecedented times, both mitigating their own risk and serving their customers better.”

Visit Primaco.ca for more information and to see what Primaco can do for your brokerage.