A turf war is developing in the burgeoning premium funding market. The funders are heavily reliant on brokers for their business, and any attempt to cut them out of the action is obviously important. So no one should be surprised at the kerfuffle that followed IBNA’s announcement of a deal with Alliance Finance.

IBNA is encouraging members to use Perth-based Alliance because it’s expected to bring IBNA more than $1 million over two years. It can do no more than encourage – Professor Fels is still around the place – but CEO Paul Serong says other premium funders are “robbing IBNA of income”.

The other premium funders have been offering IBNA members additional commission to stick with them. In some cases the inducements include an additional .5% over-riding commission.

While no premium funder we contacted was prepared to speak on the record about the IBNA situation, there’s plenty of behind-the-scenes activity going on to either secure similar deals with major broker groups or work out how to hold on to present broker clients. “I urge all IBNA members to support the joint venture,” Mr Serong said in a bulletin. “An adverse response to a short-term financial inducement will result in the fragmentation of a potentially great asset.”