Why More Insurance Brokers Are Exploring Self-Funded Premium Finance

In today’s competitive market, many insurance brokers are looking for new ways to boost revenue and retain greater control over the customer experience. One increasingly popular route? Self-funding their own premium finance offering.

For brokers with sufficient scale, this model can be both financially rewarding and strategically empowering. But like any major shift, it comes with its own pros, cons, and operational considerations.

The Appeal of Self-Funding Premium Finance

Traditionally, brokers have partnered with third-party premium finance providers to spread the cost of insurance for customers. While this model is simple and hands-off, it often comes at the cost of margin, influence and control of the technology stack.

Self-funding changes that. By using their own capital to finance premiums, brokers can:

·         Retain 100% of the interest revenue

·         Set their own pricing and underwriting terms

·         Offer a more flexible and personalised finance experience

·         Strengthen their balance sheet with a new income stream

For large, well-capitalised brokers, the numbers can be compelling. Instead of giving away margin to a lender, brokers are effectively becoming the lender and capturing the risk-cost return.

But There Are Trade-Offs

Self-funding isn’t without its challenges. Brokers need to consider:

·         Capital allocation — Tying up working capital in lending reduces liquidity.

·         Operational complexity — Managing collections, compliance, and servicing is no small task.

·         Regulatory limitations — Most brokers are not licensed lenders, which restricts how they can structure finance agreements.

·         Technology gaps — Premium finance requires a robust, real-time platform to manage payments, interest, reporting, and customer communication.

This is where many brokers hesitate. They see the upside, but the operational and regulatory hurdles feel daunting.

That’s Where Render Comes In

At Render, we work with brokers who want the benefits of self-funding — without the traditional barriers.

We provide the infrastructure, compliance wrapper, and servicing tools brokers need to operate a self-funded finance model, even without a lending licence. Our platform handles the complexity: from regulatory cover to collections, reporting, and customer experience — so you can focus on growth, not admin.

Whether you're ready to deploy your own capital or simply exploring your options, Render can help you design a model that maximises profitability while remaining low-risk and fully compliant.

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If you’re interested in exploring ways to take control of your premium finance future - self-funding might be the right move.

Learn more by reaching out to us on our contact form.

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