One in three commercial premiums is funded, but the $4 billion premium funding market isn’t being given the attention it deserves, a new study of the sector and brokers says.

The study has been compiled by Ross Hayward, director of Queensland-based Premium Funding.

He says the survey of brokers aims to draw back the curtain on the premium funding industry, because its importance to insurance isn’t being recognised.

“Huge numbers of clients rely heavily on what is one of the simplest forms of finance available to assist with payment of the annual insurance cost,” he said. “However, very little is known or reported about premium funding companies.”

Mr Hayward told insuranceNEWS.com.au falling premiums and conversion rates are putting funders under pressure.

He suggests more brokers should recognise the benefits of offering clients a funding option.

He also criticises arrangements among cluster groups and authorised representative networks that restrict which funders brokers can use.

Mr Hayward aims to release updates of the survey annually.

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