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Tougher times a plus for premium funders

Brokers’ clients are returning to premium funding as their preferred method of paying for insurance, according to Macquarie Premium Funding CEO Gary Seymour.

Announcing that Macquarie has “moved quickly” to pass on from today the latest interest rate reduction from the Reserve Bank, he told insuranceNEWS.com.au the current economic climate is presenting challenges to brokers and their clients.

“We’re keen to support them in our pricing,” he said.

Mr Seymour sees the premium funding market emerging from several troubled years caused mainly by low premium rates.

“The insurance market is showing signs of hardening,” he said. “Increasing premiums are likely to make premium funding an increasingly viable option.”