Jardine Lloyd Thompson (JLT) and Pacific Premium Funding (PPF) have announced a strategic business agreement to deliver a new, flexible insurance premium payment service to the Hong Kong market, known as premium funding.
"Payment of insurance premiums is increasingly placing a strain on businesses by tying up working capital, especially given the current economic climate coupled with rising premiums exacerbated by September 11," explains Simon Weaver, managing director of JLT in Hong Kong. "Premium funding offers an improved, cost effective method for companies in Hong Kong to pay their insurance premiums. Businesses can improve their cash flow management which in turn enhances their working capital, particularly at a time when many insurance companies are tightening their credit terms for premium payment."
The premium funding facility enables the smoothing out of insurance premium payments, allowing companies to make their insurance payments in monthly instalments, rather than the current method of making the entire payment at the renewal or inception of the policy.
"Premium funding is being introduced to Hong Kong with a well-established track record as a $60 billion business in the American, European, and Australian markets," says Grant Burley, managing director of PPF.
The premium funding facility launched by the two companies can be extended to most types of commercial insurance policies including property damage and business interruption, public/products liability, employees' compensation, motor vehicle, and professional indemnity.