Centrepoint signs bank deals to boost insurance funding
Centrepoint Alliance has signed deals with two major banks to boost the finance facility for its insurance premium funding business claiming it can offer better terms under the agreements to its clients.
The group offers the insurance premium funding alongside its financial planning, funds management and platform businesses where commercial and domestic clients can have their insurances paid by a third party funder which then charges a monthly amount to repay loan on the insurance premium.
It announced late last year that agreements had been executed with the National Australia Bank and Bendigo and Adelaide Bank which will provide increased capacity for domestic and larger commercial loans, a 30 per cent increase in the facility limit to $189 million, provide lower interest margins and facility fees while also increasing the facility term to two years.
Centrepoint Alliance had already been dealing with the National Australia Bank before signing the new agreement which brought the Bendigo and Adelaide Bank onboard with Centrepoint Alliance managing director John de Zwart stating the new facility recognised the strong support for the insurance funding business.
Centrepoint Alliance Premium Funding chief executive Bod Dodd said the increased funding would allow the business to meet medium term growth objectives and consolidate its position as the largest independent premium funder in the industry.
AUTHOR
Jason Spits
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
