Advanced Markets 2025 On Demand: The Importance and Opportunity of Servicing In-force Premium Finance Portfolios

Managing in-force premium finance arrangements requires robust reporting and analysis so advisors can provide guidance on the best ways to optimize the program. This session takes a case-study-driven approach, analyzing actual client scenarios, where premium finance programs need to be actively managed. We will explore the impact of fluctuating interest rates, collateral requirements, policy performance, and loan details, and share ideas on how best to manage these components. Attendees will gain the insights and technical expertise necessary to proactively manage in-force premium finance portfolios and ensure long-term sustainability in dynamic economic conditions.

By the end of this session learners will be able to:

• Identify the key components of in-force premium finance portfolio management, including the roles of client cash flow, collateral, and loan terms.

• Evaluate the impact of interest rate changes on premium finance strategies and how to communicate those effects effectively in annual client reviews.

• Interpret performance metrics and spread analysis between loan rates and policy returns, and apply that analysis to assess the ongoing viability of financed insurance strategies.

• Compare baseline and downside projection scenarios to guide clients through strategic decision-making regarding additional funding, risk exposure, and policy performance.

• Implement best practices for client servicing and communication, including policy review cadences, underwriting updates, and managing evolving estate planning goals.