Covéa partners with Premium Credit for new financing route

Covéa Insurance has partnered with insurance premium finance provider Premium Credit to offer customers an improved financing route.

The partnership, which is already live, has been formalised as a multiyear agreement and comes amid Premium Credit’s ongoing aim to develop its insurance market presence.

Prior to agreement, Covéa offered an in-house financing option, which it decided to outsource due to the complexities of the evolving regulatory landscape.

According to Sue Coffey, personal lines director at Covéa, the new partnership comes due to Premium Credit’s “expertise and focus on customer outcomes”.

“This partnership allows us to strengthen our service, ensure regulatory alignment and continue supporting our customers with simple and transparent payment solutions,” she added.

Pay as paid

The arrangement will make use of Premium Credit’s new “pay as paid” model, which aligns payments to Covéa by Premium Finance with “payments as they are received from customers rather than the full premium being paid upfront”.

This method is designed to mirror the insurer’s existing workflows and allow it to offer “instalment solutions at competitive rates”.

Owen Thomas, chief sales officer at Premium Credit, said: “We are delighted to begin this partnership with Covéa Insurance.

“Moving from an in-house process to a specialist provider is a significant step and it demonstrates the confidence Covéa has in our ability to deliver a compliant, efficient and customer-focused service.

“This partnership also utilises our new ‘pay as paid’ technology, an important development for Premium Credit and a valuable addition to our insurer offering.”