Close Brothers Premium Finance plans to “double down” on commercial insurance as part of its strategy to 2030, following its decision to withdraw from high-volume, aggregator-led personal lines business.
Speaking to Insurance Post, Colin Wallace, commercial director at Close Brothers Premium Finance, said the shift reflected a review of where the business could add the “most value”, taking into account servicing costs and regulatory requirements.
It comes after the lender announced on 9 July 2025 that it would exit high-volume, aggregator-led personal lines premium finance, notifying around 100 brokers that it would end its relationships with them.
“These steps start in an aggregator where there’s little to no contact with the customer through that process,” Wallace said.
However, he noted that the withdrawal does not represent a complete exit from personal lines, but a reduction in emphasis on a particular segment.
Affected brokers were given six to 12 months to transition to alternative providers.
Responsible lending
Speaking about the importance of regulatory compliance and customer outcomes, he said it remained central to the business, regardless of whether a customer fell within the FCA’s definition of a regulated customer.
He highlighted obligations around Consumer Duty, affordability assessments and the wider responsibilities placed on consumer credit lenders.
The business has also invested in supporting customers experiencing financial difficulty, including through its collections and recoveries operations.
“It’s how we deal with that, and it’s how we deal with vulnerable customers. It’s how we give customers with accessibility issues the information they need to make decisions about their finances.”
Close Brothers has also introduced “real-time affordability checks” at the point of sale and is developing a more seamless onboarding process.
“When we speak to brokers, we ask, what do they want? They want to be able to onboard customers as seamlessly as possible.”
Regulatory scrutiny
Wallace detailed how Close Brothers has a clear plan heading into 2030.
This comes despite a period of regulatory scrutiny of premium finance, including the FCA’s market study, which examined the sector during 2024 and 2025.
Wallace said the review had provided an opportunity to clarify the role premium finance plays in the insurance market.
“We’ve said a lot through the market study, and that gave us a real opportunity to reset and educate a lot of people on what premium finance brings to the insurance ecosystem.”
Premium finance has faced criticism over borrowing costs and the impact of instalment payments on customers.
However, Wallace argued that its wider value should also be recognised, particularly for businesses seeking to manage cash flow and retain capital for investment.
Making the case for finance
Wallace said spreading insurance premiums could help businesses manage their finances more effectively.
“If you’re a small factory manufacturer, paying that out in one go is quite an outgoing. You need to plan for that. You need to understand how that impacts your cash flow.
“But if I can spread that over 10 or 11 months for a small cost, you could probably do a lot with that money in terms of other investments that create value and generate growth.
“Ultimately, we want to get premium finance in front of every commercial customer we deal with.”
Future growth
Wallace said Close Brothers was investing in technology and operational processes to support its next steps, while hoping to improve efficiency across the business.
The lender expects its loan book to begin growing again as the remaining personal lines business runs off and its commercial strategy takes effect.
Wallace also pointed to the strength of the lender’s existing broker relationships as a foundation for future growth.
“We’ve been in the market for a long time, and we’ve got a lot of really strong contact relationships with brokers.”
