Is that this the following nice alternative for insurance coverage brokers?


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In the trucking industry, truck drivers need insurance to get up and down the road and they make their payments or they can’t work, Klingler noted, adding that this industry also tends to have a high rate Income consists of late fees. Agencies that pay a lot of general contractor premiums also see high volume as contractors, in turn, need to have insurance to bid for and perform the work, so there is a high demand for these types of policies.

“In our 30 years of business activity we have shown that the profitability of our financial companies in these industries is above the norm,” said Klingler. “If insurance agents haven’t looked at this in the past, it benefits them now.”

Brokers already arrange premium financing for insured parties who need it, usually with traditional premium financing companies, but many states prohibit commission programs, which means the broker will see no return on their efforts. Establishing a premium finance company with COST solves this problem, as the brokers themselves benefit from the finance fees as well as any late fee income. If the agency has enough volume, which Klingler says is at least $ 1 million in annually funded premium, then starting a premium finance company is a great option, especially as the agencies are self-stabilizing and many owners are looking for another source of income, to complement their main line of business. As the pandemic has shown, in times of uncertainty, revenue from various sources can help businesses weather the storm.

Discover how insurance brokers can leverage premium financing solutions here.

“If COST manages the day-to-day business of the financial company, who wouldn’t want to generate this additional source of income without overhead?” He asked. “ThereThere really is no work involved when working with us. The hardest question to answer when telling people about our offer is, “Why isn’t it?Doesn’t everyone do that? ”The simple answer is that everyone should consider this alternative to classic premium financing.

COST, which has no financial stake in any of the premium financial firms it operates, offers streamlined solutions that blend seamlessly with the agencies’ existing workflows and offer a flexible approach – something that has evolved in the pandemic and now in recovery has proven useful. Klingler advises prospective and existing clients that “we will run the business as we see fit” – within the limits of compliance with government guidelines – and if the agent wishes a late fee or waiver of an NSF fee for a long-term client who has had a tough month, a quick phone call or email asking COST to waive these fees is enough to show the customer goodwill in a difficult environment.

“It is very flexible to have your own financial company and have it run by COST,” said Klingler. “Not only the ability to waive fees, but also the ability to set rates and flexibility with down payment percentages – if you want to lower a price for a good customer or increase a price, our program gives the owner a lot of leeway.”

COST saw greater interest in the first half of the year as a number of new customers signed up and started the onboarding process, and Klingler said they were confident that the second half of 2021 would be just as positive. To this end, Klingler is focused on conveying the benefits of partnering with COST, especially during this time.

“Getting people to understand and really believe the profit potential is probably the hardest part,” said Klingler. “If a given agency has enough volume to be worthwhile, this is another source of income that can be beneficial to them in the long term.”