The insurance industry’s answer to “Buy Now, Pay Later” just got a serious upgrade.
NIC Premium Finance has partnered with ePayPolicy to launch Finance Connect, a feature that lets insureds finance premiums right at checkout—mirroring the convenience that e-commerce shoppers have come to expect from fintechs like Klarna and Affirm.
The goal? Replace clunky, multi-step premium financing with a single online session that includes everything from quoting and down payments to e-signing the premium finance agreement (PFA). For insurance agencies and policyholders alike, it’s a faster, smarter, and more intuitive way to handle payments—especially in the commercial space, where large premiums often stretch cash flow.
BNPL, Meet PFC
Since the COVID-19 era accelerated digital payments, BNPL adoption has surged. The top five BNPL providers grew a staggering 970% from 2019 to 2021, according to the CFPB. And while the insurance industry tends to lag behind when it comes to customer-facing tech, the integration of financing at the point of sale is a game-changer.
That’s exactly where Finance Connect comes in.
“We’re always looking for ways to make purchasing commercial insurance more streamlined and efficient,” said Kris Gustafson, President of NIC Premium Finance. “Finance Connect is a great way for insurance agencies to offer their clients flexible payment options—without sacrificing security or operational control.”
Unlike new BNPL startups trying to prove their value to merchants, premium finance companies (PFCs) like NIC have long-standing industry relationships—and know the specific compliance, workflow, and regulatory pain points insurers deal with.
What Finance Connect Actually Does
Here’s what Finance Connect enables:
- Checkout-embedded financing: Customers see a “pay in full” option and premium financing at checkout, just like selecting payment terms on Shopify.
- Instant integration: It works with existing PFCs, so agencies don’t have to switch vendors or overhaul back-end systems.
- Faster agreements: Quotes, terms, and PFAs can all be completed digitally, in minutes.
- Streamlined operations: Finance Connect ties into popular industry management systems, helping reduce admin friction and missed payments.
For agents and brokers, this means fewer awkward conversations about payment options and better client retention. For insureds, it means avoiding a big upfront cost—without waiting on back-office approvals or paper forms.
Less Pain, More Conversions
Data from the retail world shows that BNPL at checkout can boost conversion rates by 20–30% and increase average order value by up to 50%. While insurance premiums aren’t sneakers or smartphones, the behavioral logic still applies: offering flexible payment terms at the decision point leads to better close rates and higher coverage acceptance.
Gustafson sees it as a win-win:
“Finance Connect will assist insurance agencies to streamline the payment process by integrating a financing option at the point of sale, creating efficiencies and reducing payment collection headaches.”
And for agencies competing in a saturated market, digitally enabled financing is quickly becoming table stakes—not a nice-to-have.
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