FIRST Insurance Funding Review

FIRST Insurance Funding, a Wintrust Financial Corporation subsidiary, has been changing the premium finance landscape for over 30 years. They are focused on innovation and flexibility by providing solutions to meet the unique needs of each insurance agent, broker, and client. FIRST utilizes its industry intelligence and partnerships to break through the complexities of insurance financing, turning barriers to entry into wins for growth and opportunity.

Company Overview

Founded in 1990 and based in Northbrook, Illinois, FIRST Insurance Funding has become one of the largest premium finance companies in North America. It specializes in premium financing for commercially funded property and casualty insurance policies.

Additionally, they provide similar services to Canadian agencies and insureds and through their Wintrust Life Finance division. They provide financing for life insurance premiums. FIRST Insurance Funding has over 200 professionals who have a firm philosophy of working with agents and brokers and provide sophisticated payment methods and specialized services to achieve a client’s specific goals.

Products and Services

FIRST Insurance Funding is committed to premium financing, allowing insureds to pay their property and casualty insurance premiums in installments that make sense for their situation, but removes cash flow concerns while continuing coverage. The core product, premium financing, makes a difference in the lives of insureds. It allows them peace of mind with coverage. In addition to premium financing, FIRST provides life insurance financing options for high-net-worth individuals and business owners, through Wintrust Life Finance, who require large policies.

In order to help insurance agencies grow and be successful, FIRST has agency lending programs for both acquisitions and working capital. The agency loans are meant to provide a strategic financial boost to its valued partner agencies. FIRST’s agency financing programs are designed to help agencies grow their operations, expand their capabilities, or simply transition to life after a long and rewarding career.

FIRST is also leading the way in providing technological solutions to make things easier. The delivery of options such as FIRST Insite and AMS integrations is showing brokers how to improve the premium finance process from one platform. Further, they also offer tailored billing and payment options to enhance client experiences and allow agency components from small firms to captive and program businesses to put flexible payment tools directly onto the agency’s website.

In a nutshell:

• Premium Financing
• Life Insurance Financing
• Agency Lending Programs
• Technological Solutions
• Customized Billing and Payment Options

Membership Benefits and Discounts

FIRST Insurance Funding has established exclusive partnerships with key industry organizations, providing members with unique benefits:

• MarshBerry: As the exclusive premium finance partner, they help clients in achieving their business potential.
• Council of Insurance Agents & Brokers (CIAB): A council partner since 1998, they provide financial solutions to CIAB’s broker members.
• Assurex Global: Since 2006, they have been the exclusive premium financing solution, including total financial solutions, i.e., premium financing, agency lending, and wealth management.
• Florida Association of Insurance Agents (FAIA): Preferred provider, extending benefits to FAIA members and their clients.
• Independent Insurance Agents of Nebraska (IIAN): Partnering to offer premium financing products.

Furthermore, these strategic alliances not only enhance their market reach but also affirm their credibility within the insurance community.

How the Company Works for Agents, Insureds, and MGAs

For Agents and Brokers:

FIRST Insurance Funding gives agents and brokers tools to enhance the service they provide, including:

• Customizable Payment and Billing Options: Custom solutions for various types of agencies.
• Technology Integrations: Technology and services like FIRST Insite, AMS integrations, etc., that simplify processes and tasks.
• Agency Lending Programs: Proceeds to help fund agency growth and improvement.
• Simplicity: Tasks such as processing contracts, collecting payments, and debt collections can all be a headache to manage.

For Insureds:

Clients have the benefits of:

• Improved Cash Flow: Installment payments are manageable, enabling businesses to maintain capital in their business for normal operations.
• Consolidated Payments: Ability to consolidate multiple insurance premium payments into a single payment plan.
• Fixed Interest Rates: Stability with fixed interest rates and payment amounts through the term of the loan.
• Coverage Options: Financial flexibility allows businesses to purchase a more complete/broad insurance plan.

For Managing General Agents (MGAs):

MGAs can leverage FIRST Insurance Funding’s services to:

• Enhance Product Offerings: Provide clients with flexible payment solutions.
• Streamline Operations: Utilize technological integrations for efficient workflows.
• Access Financial Support: Benefit from agency lending programs to support business growth.

Customer Feedback

Overall, FIRST Insurance Funding customer feedback is favorable; clients are responding well to their flexible and innovative approaches to business. However, there are a few customer comments regarding the length of time it takes for changes and advancements to be applied to their payment plans.

For example, a review on Yelp noted that a price adjustment for the sale of a vehicle could take up to 12 weeks to apply. (Yelp)

BBB and AM Best Ratings

Better Business Bureau (BBB):

FIRST Insurance Funding Corp has been accredited by the BBB since July 28, 2020, and has an A+ rating. This shows they are committed to trying to resolve consumer complaints and ensuring transparency in their business practices.

AM Best Rating:

The latest available information shows that AM Best has affirmed First Insurance Company’s financial strength rating of B++ (good) and its long-term issuer credit rating of “bbb+” (Good). This means they can meet their ongoing insurance obligations. Source

Conclusion

FIRST Insurance Funding has become one of North America’s premier premium finance companies due to our long history, large scale and capitalization from our banking partner, Wintrust. Our core business is premium financing for property and casualty insurance policies. We appreciate our long-term relationships with our insurance agent and broker partners. Our financing and service offerings extend beyond simple financing to provide a premium finance method of customized billing; agency lending and also provide services that are specific to our partners and clients.

There is a clear and strong dedication to technology and innovation through their use of platforms like FIRST Insite and their integrations with other industry systems that are designed to help make the premium finance process easier and more efficient. The value they provide to insurance professionals, including less administrative work and nicer relationships with their clients, and the value they provide to insureds, including cash flow and coverage they needed, speaks volumes about their value proposition in insurance.

They also have an extensive, exclusive network of partnerships with industry associations, which supports their positioning and credibility within the sector. It appears FIRST Insurance Funding represents a strategically important entity in the premium finance marketplace that is using its experience, financial capacity and technology to accommodate the emerging needs of the insurance industry.