'It remains incredibly important to keep accurate data across the business'
As we head on into 2026, data and artificial intelligence (AI) has become the cornerstone of smarter, more strategic decision-making, shaping processes from premium finance to customer retention. Leading this shift, Close Brothers Premium Finance leverages real-time insights to help brokers better understand client behaviour, manage risk effectively, and build resilient client relationships.
In a recent conversation with Insurance Business, Allen Seldon, (pictured), product director at Close Brothers Premium Finance, discussed how data-driven strategies are revolutionising premium finance. From enhanced risk assessment to predictive analytics and customised solutions, Seldon shared how these innovations are meeting the diverse needs of today’s insurance customers.
“Data, essentially information, has always been central to insurance,” Seldon told IB. “What’s changed is the sheer scale of data and the use of AI, which significantly increases the speed at which it can be analysed and made available to the business. Today, Close Brothers Premium Finance share insights in real-time, enabling brokers with capabilities such as affordability decisions at the point of application and live updates on their book performance.”
And when asked what types of data really are the most valuable when assessing risk and determining premium finance rates, Seldon doesn’t mince his words.
“Premium finance is not dissimilar to insurance. It is important for brokers to identify potential fraud - where a customer uses a false address for example - cancellation and bad debt risk. When customers spread their premiums over monthly payments, data is vital to enhance the decision making required to reduce the risk that the full premium is not repaid.”
For policyholders looking to navigate these turbulent and unknown waters in 2026 and beyond, Seldon revealed that there’s some key trends they need to keep an eye on.
“While insurance premium costs have dropped recently, they remain significantly higher than they were a few years ago, following a sustained period of sharp increases, resulting in customers opting to spread the cost through monthly credit agreements,” he told IB. “This trend is common among individuals seeking to manage their budgets, as well as small businesses - such as sole traders - looking to manage their capital more effectively. Default rates, however, are not one-size-fits-all, as they vary across different demographics and behaviours.
“For instance, brokers working in Commercial Lines often encounter clients seeking greater flexibility in managing cash flow, particularly those with complex risk profiles or seasonal revenue patterns. Pre-approval processes and data-driven insights into a client’s propensity to use premium finance are becoming critical tools for brokers to deliver tailored solutions. To support this, Close Brothers Premium Finance have their unique Focus 360 tool, a comprehensive dashboard that enables brokers to monitor their default rates throughout the year and benchmark performance against peers in similar market segments, helping them make informed decisions and strengthen client relationships.”
Looking ahead to what the future holds for AI and its impact on the use of data in the Premium Finance world, Seldon told IB that data really is the underlying fuel for AI.
“It remains incredibly important to keep accurate data across the business. Where AI excels, though, is in making the evaluation of that data so much quicker and easier. Incorporating AI into our business processes allows us to filter information, analyse it, and resolve decisions more rapidly. For instance, the time taken to process customer due diligence and underwrite risks is improving all the time, and the more we can do to improve turnaround times, the better it will be for the broker and end customer.”
Close Brothers Premium Finance empowers brokers to make well-informed decisions, improving client retention and creating products that better match client needs. As Seldon shared, the future of premium finance lies in harnessing data and AI to provide brokers with the insights needed to thrive in a competitive and data-driven marketplace.
