Premium finance used to be little more than a functional checkbox in the insurance journey, an administrative afterthought that simply enabled policyholders to spread the cost of their cover. But in 2025, it has evolved into one of the most strategic and scrutinised elements of the customer experience. As inflationary pressures and shifting consumer behaviours reshape how people manage their money, premium finance has stepped into the spotlight.
Today, more than 40% of UK policyholders choose to pay monthly for their insurance and that number continues to climb. What was once regarded as a fallback option for those needing affordability is increasingly becoming the default. For many consumers, the ability to pay monthly is no longer a convenience, it’s an expectation, tightly woven into the way they budget, compare providers, and ultimately make purchasing decisions. This shift has profound implications for insurers and intermediaries alike, challenging them to re-evaluate how they design, communicate, and deliver their finance offerings within the broader insurance journey.
With price comparison sites ranking products on Total Instalment Cost (TIC), not APR, the difference between being seen or skipped often comes down to how well you structure your monthly offering.
Too much focus on APR might tick a regulatory fairness box but it won’t get you seen. A high TIC, even if justified by a low APR, can push your product down the rankings or off the radar entirely. On the flip side, optimising for TIC not only boosts your visibility on PCWs but also helps build consumer trust and demonstrate value in a cost-conscious market. And crucially, it aligns with regulatory expectations around clear, customer-first pricing.
💥 Focus on APR? You might look fair but lose the visibility battle.
🔥 Nail your TIC? You win customer trust, regulator approval, and conversion on PCWs.
And it’s not just younger, financially stretched Motor customers driving this change. Home insurance is also seeing significant growth in monthly uptake, this time from financially savvy customers seeking flexibility, not credit.
In both segments, the message is clear: premium finance is no longer a sideshow. It’s a central feature of the modern insurance proposition and one that demands both strategic design and careful execution.
Our latest Total Instalment Cost Benchmarking Report is designed to give insurers, brokers, and pricing teams a data-driven edge. Inside, you’ll uncover:
✅ How TIC is reshaping PCW rankings and customer expectations
✅ Why 0% APR isn’t always fair—or even legal-risk free
✅ Who’s using premium finance and how it’s impacting brand perception
✅ Tactical benchmarking: Where your TIC ranks vs competitors
✅ What Consumer Duty really means for monthly payment models
✅ How new players (especially banks) are setting a new bar on fairness
Premium finance isn’t a bolt-on, it’s a core product feature, a margin driver, and a compliance hotspot. If you're not tracking how you stack up on TIC, you're flying blind.
Our report cuts through the noise and gives you the facts because in a market where 40%+ of your customers pay monthly, your premium finance strategy could be the difference between growth and decline.