The Future of Premium Collection: A Conversation with Fulcrum’s Tech Team

In this insightful discussion, Tony sits down with Jade Jensen, Managing Director of Fulcrum Group South Africa, and Dave Stevens, Chief Technology Officer, to discuss the challenges and solutions within premium finance. Together, they explore Fulcrum’s cutting-edge Air Collect model, a solution designed to revolutionise the way premiums are collected and disbursed within the insurance industry.

Jade explains how Air Collect emerged from a need to mitigate financial risks for insurers and reduce the administrative workload for brokers. By combining multiple premium collections into a single debit order, Air Collect makes it easier for brokers to reconcile monthly transactions while ensuring insurers have immediate access to funds. This consolidated model enhances cash flow transparency and minimises manual errors, benefiting both brokers and insurers.

On the technical side, Dave describes Fulcrum’s seamless integration process with popular broker management systems, enabling brokers to work efficiently within their existing workflows. He details how Fulcrum collaborates with Capitec Bank to facilitate the collection and disbursement process, securely handling funds and splitting them according to predefined instructions. The result is a simplified, efficient premium collection process that allows brokers to avoid multiple debits and complex reconciliations, saving time and reducing potential errors.

The discussion also highlights the early successes of Air Collect and the expansion plans underway to onboard more brokers across South Africa. With Air Collect, Fulcrum is setting new industry standards by making premium finance simpler, safer, and more manageable. This episode offers a comprehensive view of how technology can streamline complex processes and reduce financial risks in the insurance industry, making it a must-listen for brokers, insurers, and anyone interested in financial innovation in insurance.

Key Points

• Role of Air Collect in Premium Finance:

Air Collect is a new premium collection model by Fulcrum, designed to streamline and simplify the premium collection process for brokers and insurers. The model consolidates multiple payments into a single debit, easing monthly reconciliations for brokers.

• Risk Reduction for Insurers:

Air Collect addresses insurer concerns about premiums being held outside their balance sheets by allowing direct collection into insurer-owned bank accounts. This shift helps mitigate financial risks that insurers face when premiums are held by third parties.

• Seamless Integration with Broker Management Systems:

Fulcrum has integrated Air Collect with leading broker management systems (BMS) like Cardinal’s C360 and Integrity. This integration enables brokers to automate and streamline their premium collection processes, reducing administrative burden and potential errors.

• Efficiency and Transparency:

The Air Collect model allows for real-time data transfer between brokers, Fulcrum, and their banking partner, Capitec Bank. This enhances transparency, reduces errors, and consolidates multiple premium components (such as broker commissions and VAT) into one collection, reducing the likelihood of discrepancies.

• Broker Benefits and Ease of Use:

Air Collect simplifies brokers' processes by handling disbursements automatically. The system only requires brokers to submit a single monthly file that includes all necessary disbursement information, eliminating multiple manual steps and reducing errors.

• Future Rollout and Expansion:

Fulcrum is gradually rolling out Air Collect, initially stabilizing it with a few brokers and then expanding to more across South Africa. The company plans to integrate with additional broker management systems to reach a broader network of brokers in the near future.  These points highlight Air Collect as an efficient, risk-reducing solution that enhances both the broker and insurer experience in premium finance.