What Is Premium Finance Software?
A Complete Guide for the U.S. Insurance Market

Introduction

Premium finance is a critical part of the insurance ecosystem in the United States. It allows businesses to pay insurance premiums over time rather than in a single upfront lump sum.

As the U.S. market modernizes, insurance agencies, MGAs, and premium finance companies are turning to technology to reduce operational costs, eliminate manual workflows, and improve the customer experience.

That’s where premium finance software comes in.

With 35 years of global expertise and more than $10 billion in repayments managed annually, Red Planet Software (RPS) delivers one of the world’s most advanced premium finance software platforms, now expanding aggressively into the United States.

This guide explains exactly what premium finance software is, how it works, and why U.S. organizations are adopting it to scale faster and operate more profitably.

What Is Premium Finance Software?

Premium finance software is the technology that automates and manages the entire premium finance workflow for general insurance in the United States.

It handles:

• Quoting
• Agreement generation
• Repayment schedules
• Billing & payments
• Collections & arrears
• Compliance
• Reporting
• Integrations with agency & broker system

“Unlike a premium finance company, which provides the money, premium finance software provides the operational engine behind the financing process.” said Peter Williams, CEO, Red Planet Software.

Why Premium Finance Software Matters

in the U.S. Market

The U.S. premium finance industry is massive, but often built on:

• Spreadsheets
• Manual quoting tools
• Email-based follow-ups
• Disconnected payment systems
• High administrative costs
• Inconsistent compliance workflows

This makes scaling difficult and reduces profitability.

Premium finance software solves these problems by creating a single, secure, automated system for every step of the premium finance lifecycle.

How Premium Finance Software Works

A modern premium finance platform follows a structured, automated workflow:

1. Quote Generation

Agencies or finance companies:

• Input premium details or have the details transferred from their AMS via API
• Present multiple repayment options
• Auto-calculate terms, fees, deposit requirements, and APRs

2. Agreement & e-Signature

The software generates a compliant finance agreement, branded for the lender or agency. Clients sign electronically, creating an auditable, time-stamped record.

3. Funding & Disbursement

Once approved:

• The premium finance company pays the insurer or agency in the agreed settlement timeframe
• The repayment schedule activates immediately

4. Billing & Payments

The platform handles:

• Automated instalments
• Direct debit/ACH
• Credit card payments
• Refunds
• Bank file exchanges

5. Collections & Arrears Management

With automated:

• Reminder workflows
• Notices
• SMS/email triggers
• Cancellation timelines
• Recovery tasks

6. Reporting & Compliance

Premium finance companies and MGAs gain real-time visibility into:

• Loan book performance
• Outstanding balances
• Exceptions
• Cash flow
• Compliance events
• Audit trails

7. Renewals

The system auto-prepares renewal finance options, improving retention and cash flow.

Who Uses Premium Finance Software?

1. Premium Finance Companies

They use software to:

• Run their loans at scale
• Reduce operating overhead
• Increase portfolio performance
• Maintain compliance
• Offer a modern customer experience

2. Insurance Agencies & Broker Networks

Larger agencies (and many U.S. broker networks) use premium finance software to:

• Integrate funding into their insurance sales workflow
• Offer financing to clients instantly
• Reduce admin work for staff
• Improve policy retention
• Potentially run their own in-house premium finance entity

3. MGAs & Insurers

MGAs and carriers use premium finance integrations to:

• Gain visibility over financed policies
• Improve cash flow
• Streamline reconciliation
• Ensure policy and premium alignment

Premium Finance Provider vs Premium Finance Software

These terms are often confused, so here’s the clean distinction:

Premium Finance Software (the technology)

Responsible for:

• Automating operational workflows
• Managing agreements, payments, and collections
• Ensuring compliance
• Supporting integrations
• Scaling operations efficiently

Why U.S. Organizations Are Switching to Modern Premium Finance Software

1. Scale Without Adding Staff

Automation replaces:

• Manual quoting
• PDF repayment schedules
• Excel tracking
• Email-based collections
• Back-and-forth with clients

2. Reduce Errors & Operational Risk

Compliance steps become embedded into the workflow, not dependent on individuals.

3. Provide a Better Customer Experience

• Fast approvals.
• Easy payments.
• Clear communication.
• Modern digital experience.

4. Increase Profitability

Premium finance software helps funders:

• Improve collection rates
• Reduce arrears
• Strengthen portfolio performance
• Lower cost per loan

5. Improve Retention & Revenue for Agencies

When U.S. agencies offer financing at point-of-sale:

• Clients stay longer
• Coverage upgrades become affordable
• Renewal conversion increases

Key Features of Modern Premium Finance Software

Premium finance platforms often include:

Quoting & Origination

• Multi-option finance quotes
• Automated APR calculations
• Self-service broker/agency and client portals

Document Generation

• Branded agreements
• E-signature
• Automated notices

Billing & Payments

• ACH / direct debit
• Card payments
• Bank file processing
• Refunds

Collections Management

• Automated arrears workflows
• Pre-cancellation notices
• Recovery tasks

Reporting & Analytics

• Real-time dashboards
• Portfolio performance metrics
• Audit and compliance reporting

Integrations

• Agency management systems
• MGA underwriting systems
• Payment processors
• Accounting and GL platforms

Security & Compliance

RPS meets industry-leading security standards including:
ISO 27001, AICPA SOC2, and PCI certifications.

The U.S. vs Global Premium Finance Landscape

Different markets use different terminology:

• United States: “Premium Finance”
• Canada: “Premium Finance”
• Australia & New Zealand: “Premium Funding”
• United Kingdom: Both terms appear, shifting toward “premium finance”

Red Planet Software is one of the few platforms that operates successfully across all four regions, making it uniquely suited for U.S. organizations seeking a global-ready system.

Already processing more than $10 billion in repayments annually worldwide, our platform has been built specifically for insurers, MGAs, brokers and third-party funders.

Whether you’re a broker, funder, or insurance technology provider looking for a flexible payment solution that leads with purpose, let’s explore what’s possible. Discover precision, give back with purpose, and grow with confidence — powered by Odyssey, our Insurance Premium Finance Software.