Why Do Agents Need Access to Premium Financing and What Value Can a Leading Partner Bring to an Agency?

by: Stonemark Premium Financing

Navigating the Ongoing Challenges of the Insurance Market: Evaluating Premium Financing Solutions in Uncertain Times.

Two years removed from the start of the pandemic and the global economy continues to face a wealth of uncertainty. Rising interest rates and continued inflationary pressure threaten nearly every sector. In the insurance business, challenges abound as agents navigate an ongoing hard market and shrinking capacity.

Faced with mounting concerns around increased employee costs and limited cash flow, insureds are working with their agents to secure premium financing for a broad spectrum of policies from the simple to complex.

In many respects, the need for a premium financing partner has never been stronger.

But when exploring premium financing solutions, not all providers are the same. Beyond evaluating rate, it is important to understand the company’s financing capabilities, restrictions and service standards.

Smart Choice Partners with Stonemark to Provide Competitive Advantage for Premium Financing in Commercial and Personal Lines.

Earlier this year, Smart Choice embarked on a partnership with Stonemark, an industry-leading premium financing company uniquely positioned to service policies across Commercial and Personal Lines in both the U.S. and Canada.

Smart Choice agents are able to capitalize on Stonemark’s pre-negotiated rate chart, providing a competitive advantage that enables them to sell more policies.

Founded nearly 40 years ago, Stonemark’s independent ownership enables the company to offer flexibility in the types of risks it finances. Because Stonemark is not bank-owned, the company can provide competitive financing solutions for Cannabis, Personal and Commercial lines. Importantly, financing with Stonemark will not impact the customer’s borrowing base at financial institutions.

The same cannot be said of bank-owned entities, where federal regulations limit their ability to finance a number of emerging risk categories, like Cannabis.

“Stonemark’s team has really become an extension of my own,” said one of our Smart Choice agents that has a longstanding relationship with Stonemark.

“They take the time to get to know us, to understand our needs and then recommend the solutions that work best. We have been impressed by Stonemark’s ability to utilize premium financing as an important resource to sell more policies.”

The company has developed a reputation for its service standards, honed over the last four decades.

“Insurance is a relationship business and we view our partnership with agents as far more than just transactional financing,” said Elizabeth Davies, President, Stonemark. “Our cancellation rate is less than 4%. We are proactive in communicating with agents and insureds when required. It results in happy insureds and appreciative agents who earn more commissions.”

Stonemark Delivers Seamless Experience for Agents with Industry-Standard Software and Flexible Payment Options Across Commercial and Personal Lines.

Stonemark also focuses on delivering a seamless experience for its agents. The company provides agents with access to the Input1 system, now the industry standard in premium financing software. Input1 enables agents to easily quote, make payments and run reports on their accounts.

Insureds are also able to use multiple forms of payment including recurring payment processing through credit cards and ACH.

Stonemark is an H.W. Kaufman Group company, a global specialty insurance organization that spans the industry’s top insurance and risk management companies. Kaufman’s footprint includes more than 60 offices in the U.S., Canada, U.K., Europe and South America. Privately held, family owned and operated for three generations, Kaufman provides Stonemark with the financial freedom, flexibility and security to seamlessly deliver for its clients across the U.S. and Canada.

“Our independence really powers our competitive advantage,” added Davies. “With so much consolidation in the industry, we recognize the value independent agents offer their clients given the freedom they have to offer them a variety of risk management solutions.”

Davies notes that independent agents enjoy working with like-minded independent organizations, like Stonemark.

“We share a commitment to high standards of service and in simply getting the job done.”

Over the past several months, Stonemark has significantly transformed its presence, adding top premium financing professionals in Florida, Louisiana, Texas and California.

“Our teams are sitting down with agents, reviewing their books of business and strategizing on the best financing solutions to assist the agent in writing more policies,” said Davies. “Stonemark’s expertise is now truly nationwide – we have teams that understand the risk profiles in California, Louisiana or Florida because that’s where they have worked and lived for decades. I am proud of the partnerships being forged with agents and the opportunity to continue growing together.”

Recently Davies attended a Smart Choice conference in Atlanta. Among the feedback received, agents noted their appreciation for the Stonemark rates, especially considering rate increases across the board in nearly every sector. Additionally, areas such as Workers Compensation, coupled with emerging risks like Cannabis, will continue to be areas for growth within premium financing.

We share a commitment to high standards of service and in simply getting the job done."

-Elizabeth Davies, President, Stonemark