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Fulcrum’s seamless premium finance and collections offerings 

The Fulcrum Group of Companies is South Africa’s foremost independent provider of premium collection and premium finance to the insurance industry.

Our brand promise is “We see it differently” – and our track record illustrates that we certainly do.

Years of experience

Although our roots stretch back nearly three decades, we first took the Fulcrum name in 2012 and officially launched to the market in March 2013. Our leadership who come from diverse backgrounds in the insurance and finance industries have years of experience and have developed a thorough understanding of both industries, particularly the niche where they overlap.

From the start, Fulcrum has provided specialist financial and back-office support, through our two core businesses Fulcrum Collections and Fulcrum Premium Finance, to brokerages, UMA’s and insurers, helping them to optimise and de-risk their operations, save money and focus on what they do best: providing their customers with advice and service.

“Fulcrum Premium Finance through the facilitation of the brokers allow the policyholders to maximise their return on their cash without impacting the cash flow of the broker and insurer. Premium finance is a product that can assist corporates to achieve their targets and grow their businesses hassle-free. Fulcrum’s dedicated and experienced team are here to assist the brokers and insurers to provide the policyholders with the best possible options.” says Sachin Govender, Managing Director of Fulcrum Premium Finance.

Fulcrum Premium Finance Q and A

Q: How do brokers decide whether insurance premium financing is right for their clients?

A: Small, medium, and large corporates from all sectors can benefit from premium financing. Fulcrum Premium Finance is a specialist in premium finance and has been able to put together solutions that are tailored to each of our client’s needs. We find that once a client is aware of premium financing, they are eager to take up a solution that suits their needs. We welcome brokers to contact Fulcrum Premium Finance to determine how best we can assist their clients with paying their insurance premiums.

Q: What are the reasons to choose Premium Finance?

A: There are numerous benefits to Premium Finance, but the following are some of the key reasons to choose Fulcrum Premium Finance:

  1. Improved cash flow – businesses can release substantial cash flow by paying off annualised insurance through premium finance. The improved cash flow can be used for investment opportunities or used for the rising costs in the current market.
  2.  Collateral and cost-effective – The interest rates for premium finance are competitive and act as an attractive banking alternative. There are no additional securities required other than the insurance policy.
  3. Claim substantial VAT input upfront – premium finance enables businesses to claim VAT input credits at the beginning of the policy. This frees further cash and generates a substantial time-value-of-money saving.
  4. A simplistic insurance portfolio- All policies are aggregated into one monthly repayment with insurers and brokers receiving their annual portion upfront.
  5. Preferential to rescheduling with the insurer – premium finance costs typically allow the policyholder to obtain the benefit of having an annual premium compared to a monthly policy.
  6. Reduced administration -Fulcrum handles the collection of repayment from the client and the payment of the premium to insurers and brokers.

“We’ve always taken the innovative route, developing premium collection systems that meet legal and regulatory requirements, to future-proof and de-risk our clients, and provide them with efficiency, convenience and cost savings,” says Jade Jensen, Managing Director at Fulcrum Collections.

“Fulcrum has embarked on a project to improve the Legacy and Fulcrum CollectDirect collection processes with the soon-to-be-launched cloud-based Cirrus system. The Fulcrum AirCollect model, which will allow Fulcrum to split debit order collections ‘in the air’ as such, will be the most exciting addition to the new platform,” adds Jensen.

Fulcrum Premium Collections Q and A

Q: I am an Intermediary, what will Fulcrum Collections do for me?

A: Fulcrum Collections is an independent licence-agnostic premium collection facility enjoying relationships with broker-facing insurers and broker management system (BMS) providers. The Fulcrum AirCollect model will be fully integrated with all participating BMSs, creating a seamless interface between systems and data being transmitted in real-time.

File submission via API not only greatly enhances security and efficiency, the often-challenging reconciliation between BMS-produced bordereaux and Fulcrum’s ‘cash’ bordereaux, is automated and simplified. The intermediaries’ valuable time is freed up.

The additional data being shared between systems provides analytics allowing more meaningful management of client portfolios and the underlying potential opportunities and risks.

Q: I am an Insurer, why should I go with Fulcrum Collections?

A: Although the Fulcrum CollectDirect model significantly de-risked insurers by collecting premium from the policyholder directly into an insurer owned bank account, Fulcrum recognised the need for a method to split premium collection at source. The Fulcrum AirCollect model imports granular detail from intermediaries allowing the various components making up the debit order to be paid directly into the relevant insurer, intermediary or VAP provider’s bank account. Only the net premium is collected into the insurer’s bank account. The model accommodates co-insurance policies, premium deposits and annuals, providing an all-encompassing collections solution.

The additional information gained allows for more transparency ensuring that data is presented to the insurer in a meaningful manner, which is particularly useful in meeting regulatory and legislative reporting requirements. In addition, this data-rich environment gives insurers accurate information on their underlying risk book and the performance of individual intermediaries.