Premium Finance Market Report 2025

The premium finance market size has grown rapidly in recent years. It will grow from $51.37 billion in 2024 to $57.13 billion in 2025 at a compound annual growth rate (CAGR) of 11.2%. The growth in the historic period can be attributed to growth in high net worth individuals (HNWIs), expansion of luxury goods and services, increasing insurance premiums, growth in real estate investments, increased focus on asset protection.

The premium finance market size is expected to see rapid growth in the next few years. It will grow to $88.4 billion in 2029 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to rising insurance premiums, expansion of insurance products, increasing availability of credit, rise in corporate financing, growth in wealth management services. Major trends in the forecast period include adoption of digital platforms, development of customized financing solutions, advancements in risk assessment tools, adoption of mobile payment solutions, advancements in customer service technology.

The forecast of 11.5% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through higher borrowing costs for insurance premiums, as payment scheduling systems and collateral tracking tools, predominantly developed in Ireland and Denmark, face higher operational expenses due to software tariff impacts. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth of non-banking financial companies (NBFCs) is expected to drive the expansion of the premium finance market in the coming years. NBFCs are financial institutions that provide various banking services without the need for a banking license. The rise of NBFCs is fueled by factors such as regulatory changes and the increasing demand for credit in underserved markets. NBFCs contribute to premium finance by offering flexible loan structures, faster approval processes, and competitive rates, making insurance more accessible and affordable for policyholders. For example, in June 2024, the Australian Bureau of Statistics, an Australia-based government agency, reported that net claims on non-financial corporations were distributed as follows: $1.42 trillion from financial corporations, $922.4 billion from households, $1.14 trillion from the rest of the world, and $450.8 billion from the general government. As a result, the growth of NBFCs is driving the premium finance market.

Leading companies in the premium finance sector are focusing on developing extensive financial networks to enhance their service offerings and streamline transactions. A financial network is a system of interconnected financial institutions and services that facilitate transactions, data exchange, and communication, thereby improving the efficiency, accuracy, and accessibility of financial services. For instance, in April 2024, ePayPolicy, a US-based insurance technology (Insurtech) and financial services company, introduced Finance Connect, an advanced feature designed to streamline premium financing for insurance companies. This feature integrates with existing premium finance company (PFC) partners, offers flexible payment options, and simplifies auto-payment and reminders, improving conversion rates and operational efficiency in response to the increasing demand for digital and automated financial solutions in the premium finance market.

In April 2024, InterPlanetary File System (IPFS) Corporation, a US-based financing company, acquired Stonemark Inc. for an undisclosed amount. This acquisition aims to expand IPFS's client base, enhance its premium finance capabilities, and leverage the combined expertise and experience of both organizations to deliver superior services to the insurance industry. Stonemark Inc., also based in the US, provides premium financing services to insurance brokers and managing general agents (MGAs).

Major companies operating in the premium finance market are JPMorgan Chase & Co., Wells Fargo & Company, Munich Re Group, The Hartford Financial Services Group Inc., Lincoln National Corporation, BNY Mellon Wealth Management, Sun Life Financial Inc., Symetra Life Insurance Company, Valley National Bancorp, Wintrust Financial Corporation, Byline Bancorp Inc., FMG Suite LLC, IPFS Corporation, AgentSync Inc., Parkway Bank & Trust Co., US Premium Finance, PayLink Direct, Succession Capital Inc., ARI Financial Group, ClassicPlan Premium Financing Inc., Agile Premium Finance, Colonnade Advisors LLC.

North America was the largest region in the premium finance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the premium finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the premium finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The premium finance market includes revenues earned by entities by providing services such as insurance premium loans, premium funding arrangements, risk management consulting, financial advisory, credit risk assessment, and claims management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Premium finance refers to a financial arrangement where a third party, such as a specialized finance company or bank, provides funds to individuals or businesses to cover insurance premiums. This arrangement enables policyholders to spread the cost of their insurance premiums over time, rather than paying the full amount upfront.

The main categories in the premium finance market include life insurance and non-life insurance. Life insurance provides a monetary benefit to the policyholder's beneficiaries upon their death. Premium financing options can involve various interest rates, including fixed and floating rates. Providers of premium finance include banks, non-banking financial companies (NBFCs), and other financial institutions.

The premium finance market research report is one of a series of new reports that provides premium finance market statistics, including the premium finance industry global market size, regional shares, competitors with premium finance market share, detailed premium finance market segments, market trends, and opportunities, and any further data you may need to thrive in the premium finance industry. These premium finance market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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