Premium finance benchmarks

Evaluate financed insurance premiums, payment obligations and supported recoverable exposure.

Use the premium-finance agreement, insured party and underlying policies as linked objects. Keep borrower installments, insurer premium and any contractually recoverable premium amounts separate.

Financial-risk measures

Measure	Definition and comparison rule
Financed exposure	Outstanding principal and documented financed charges at the observation date.
Payment burden	Scheduled installments relative to supported household or business cash flow.
Arrears	Unpaid contractual amounts and days past due, including valid adjustments.
Recoverable-premium coverage	Supported recoverable premium divided by outstanding exposure, only where policy terms and applicable rights establish recoverability.
Recovery timing	Elapsed time from a defined event to actual receipt, retaining partial receipts and unresolved cases.
Net loss	Exposure remaining after observed recoveries, with fees and costs identified.

Do not assume that the unexpired policy period implies a fully refundable premium. Minimum-earned terms, taxes, fees and contractual rights can change the recoverable amount.

Public benchmark sources

OSFI’s public financial returns provide insurer context, not a matched borrower-level premium-finance repayment panel. This collection does not derive a universal premium-finance loss rate from those returns.

A usable benchmark needs an authorized agreement ledger, policy terms, due dates, actual payments and observed recoveries. It must distinguish a calculated recoverable amount from money actually received.

AMLOK evaluation

Measure policy-to-agreement matching, installment extraction and calculation of supported exposure. Test whether the model identifies missing or conflicting recoverability terms instead of assuming a value.

Hold out borrowers and policy periods. Compare arrears and net-loss performance only after the defined outcome horizon has matured. For Signal, evaluate supported payment, cash-flow and coverage changes. Keep insurer or lender policy administration and intervention outside AMLOK’s assessment workflow.

Follow the financial analysis methods and benchmark contract. These policy-related measures do not change AMLOK’s own service-credit or account-cancellation terms.