Markerstudy has announced the launch of a dedicated premium finance division, a strategic move aimed at enhancing its oversight and delivery of financing services across the group’s operations.
To lead the new division, the company has appointed Cristian Jackson as Premium Finance and Lending Director. Jackson, who brings over three decades of experience in the premium finance sector, will report directly to Emma Rawlinson, CEO of Markerstudy Distribution.
In his new role, Jackson will focus on improving customer experience and ensuring optimal outcomes for policyholders. A key part of his strategy includes the introduction of innovative lending products tailored for both commercial and retail segments, complementing the group’s existing offerings.
Responding to Regulatory Scrutiny
The formation of this specialist division comes as the Financial Conduct Authority (FCA) intensifies its scrutiny of the premium finance market. In November, the FCA initiated a market study to assess whether customers using credit to pay for motor and home insurance are receiving fair value. The review includes an evaluation of product transparency, competitive pricing, and the role of commissions in shaping customer outcomes.
This regulatory focus is influencing how insurers and finance providers, including Markerstudy, structure and manage their premium finance operations to ensure compliance and deliver fair value.
Evolving Market Dynamics
Recent data from consultancy Pearson Ham indicates that while the cost of financing insurance premiums has declined, it remains a critical consideration for consumers. In September 2024, the average cost of paying for motor insurance in monthly instalments stood at 10.7%, down from 11.9% in October 2023. Home insurance financing costs also fell, averaging 8.3% compared to 10.0% a year earlier.
However, the market continues to show wide variability in premium finance charges. For motor insurance, rates have ranged from 1.9% to 20.2%, while home insurance rates have spanned from 0% to as high as 36.8%. These disparities have raised concerns about transparency and consistency in the pricing of finance options, with regulators and industry stakeholders increasingly focused on ensuring consumers receive fair value.
Strategic Growth and Expansion
The establishment of the premium finance division also follows Markerstudy’s acquisition of Hughes Insurance in November 2024. The deal added approximately 85,000 customers to the group’s distribution network and strengthened its presence in Northern Ireland.
Hughes Insurance, known for its capabilities in motor, home, van, travel, and business insurance, bolsters Markerstudy’s product portfolio and enhances its competitive positioning in these core areas.
As regulatory expectations evolve and customer needs become more complex, Markerstudy’s investment in premium finance infrastructure signals its commitment to responsible growth and value-driven financial services.
