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Leasing & Financing

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Case Studies

See firsthand how organizations have achieved their goals with customized financing from First American.

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Technology Modernization with Flexible Financing

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Technology continues to transform the insurance industry, driving investments in AI, cloud platforms, cybersecurity, and other digital initiatives. This quarter's resource hub explores the trends shaping these investments, shares reports from leading industry research, and highlights how financing solutions can help insurance organizations invest in technology while preserving capital and financial flexibility.

Industry Insights

Featured Industry Insights

Technology Modernization Through Flexible Financing

According to Forrester, U.S. insurance technology budgets are projected to reach $173 billion in 2026, growing 7.8% year-over-year and representing 6% of total U.S. technology spending.1

As investment accelerates across hardware, cloud, and cybersecurity, organizations are under pressure to modernize while managing capital constraints. From device refreshes to infrastructure upgrades, leaders are rethinking how to keep pace with evolving demands while preparing for the next wave of AI-driven capabilities reshaping business value.

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Trending Tech Investments for Insurance Organizations

Insurers are deploying AI to streamline underwriting and claims processing, improve risk assessment, and enhance decision speed and accuracy across the policy lifecycle.

Assets: Guidewire AI, Duck Creek, CCC Intelligent Solutions, Shift Technology, Verisk Analytics

Cloud-based core systems are enabling carriers to modernize policy, billing, and claims platforms—improving scalability, data access, and operational efficiency while reducing legacy system dependency.

Assets: Guidewire Cloud, Duck Creek OnDemand, Microsoft Azure, AWS, Salesforce Financial Services Cloud

Investment in data infrastructure and cybersecurity remains critical to protect sensitive policyholder information, ensure regulatory compliance, and maintain business continuity across digital operations.

Assets: Data platforms, analytics tools, cybersecurity solutions, identity and access management, endpoint security, disaster recovery systems

Employees collaborating in the office sitting around a table.

Trending Tech Investments for Insurance Organizations

Insurers are deploying AI to streamline underwriting and claims processing, improve risk assessment, and enhance decision speed and accuracy across the policy lifecycle.

Assets: Guidewire AI, Duck Creek, CCC Intelligent Solutions, Shift Technology, Verisk Analytics

Cloud-based core systems are enabling carriers to modernize policy, billing, and claims platforms—improving scalability, data access, and operational efficiency while reducing legacy system dependency.

Assets: Guidewire Cloud, Duck Creek OnDemand, Microsoft Azure, AWS, Salesforce Financial Services Cloud

Investment in data infrastructure and cybersecurity remains critical to protect sensitive policyholder information, ensure regulatory compliance, and maintain business continuity across digital operations.

Assets: Data platforms, analytics tools, cybersecurity solutions, identity and access management, endpoint security, disaster recovery systems

Major technology manufacturers including Dell, Lenovo, and HP have warned of hardware price increases of 15–20% as memory shortages and component costs continue to rise.2 Financing can help firms lock in today's pricing and spread costs over the useful life of the technology.

Benefits of Financing Technology & Software Investments

As insurance companies move into execution, the focus shifts to funding strategy. Financing can support modernization while preserving liquidity and financial flexibility. Increasingly, organizations are using financing intentionally—not out of necessity, but to align costs with the useful life of technology assets and deploy cash where it can generate the greatest return.

Establish a Disciplined Refresh Cycle

Structuring hardware through Fair Market Value (FMV) financing helps create a consistent refresh cycle, reducing large capital spikes while helping ensure access to current, supported technology.

Optimize Software Spend

Financing annual or multi-year software commitments allows organizations to convert significant upfront costs into predictable payments—improving cash flow management and budget alignment.

Enhance Financial Efficiency

A more predictable cost structure supports smoother cash flow, preserves working capital, and better aligns technology spend with business value—while offering potential accounting and tax advantages.

Strengthen Risk & Security Posture

Aging infrastructure increases operational and cyber risk. A financing-led approach helps insurance companies keep security infrastructure current, strengthening data protection and supporting regulatory compliance.

Benefits of Financing Technology & Software Investments

As insurance companies move into execution, the focus shifts to funding strategy. Financing can support modernization while preserving liquidity and financial flexibility. Increasingly, organizations are using financing intentionally—not out of necessity, but to align costs with the useful life of technology assets and deploy cash where it can generate the greatest return.

 

Two laptops with arrows, indicating a refresh cycle icon.

Establish a Disciplined Refresh Cycle

Structuring hardware through Fair Market Value (FMV) financing helps create a consistent refresh cycle, reducing large capital spikes while helping ensure access to current, supported technology.

Cloud icon.

Optimize Software Spend

Financing annual or multi-year software commitments allows organizations to convert significant upfront costs into predictable payments—improving cash flow management and budget alignment.

Half pi chart with graphs showing increase.

Enhance Financial Efficiency

A more predictable cost structure supports smoother cash flow, preserves working capital, and better aligns technology spend with business value—while offering potential accounting and tax advantages.

Security and lock icon.

Strengthen Risk & Security Posture

Aging infrastructure increases operational and cyber risk. A financing-led approach helps insurance companies keep security infrastructure current, strengthening data protection and supporting regulatory compliance.

Prioritizing Flexibility and Lifecycle Management

Fair Market Value (FMV) leasing offers an adaptable approach. It allows technology investments to evolve alongside business needs, without the constraints of traditional ownership models.

 

Pay For Use, Not Ownership

Use not ownership example

FMV Leasing Can Enable:

  • Budget Predictability with Fixed Payments
  • Timely Equipment Upgrades
  • Lower Obsolescence and Data Security Risks
  • Costs Aligned to Equipment’s Useful Life

Extending Flexibility to Core System Investments

While FMV leasing is designed for tangible assets, the same financial principles can be applied to large-scale software investments. Financing multi-year core system implementations—including integration and consulting costs—allows organizations to spread significant upfront investments over time. 

From a statutory accounting perspective, many technology investments are non-admitted and reduce surplus upfront. Lease financing can provide an alternative that helps preserve surplus while still enabling organizations to move forward with critical technology initiatives.

This has been prepared for informational purposes only and is subject to change at any time without notice. It is not intended to be used as tax, legal, or accounting advice. Consult with a tax, legal, or accounting professional for guidance.

First American’s FMV Refresh Program Highlights

Flexible End-of-Term Options

Refresh only what you need—return, purchase, or keep renting individual assets, while maintaining continuity with your software.

Built-In Transition Support

To support technology upgrades, existing clients who initiate a replacement lease can take advantage of a 90-day free rent period on their current leased assets, helping reduce the financial impact of overlapping lease commitments.

End-to-End Asset Management

First American can provide packing, shipping, and logistics, helping reduce internal burden and support a more streamlined refresh process.

The First American Difference

Selecting the right financing provider plays an important role in how effectively an FMV strategy supports broader technology and financial objectives. 

With more than 30 years of experience serving sophisticated commercial borrowers, First American Equipment Finance is one of the top equipment finance companies in the nation.3 This experience, combined with deep industry knowledge, supports a clear understanding of the challenges insurance companies face, enabling leasing solutions that align with unique needs and long-term goals.

 

Strength & Stability

Ranked #12 among the largest bank-owned equipment leasing companies in the U.S.3

Proven Track Record

7,000 clients nationwide, including 130 insurance organizations.

Significant Financing Volume

$2.3B in equipment leases and loans funded in 2025.                                                       

Strength & Stability

Ranked #12 among the largest bank-owned equipment leasing companies in the U.S.3

Proven Track Record

7,000 clients nationwide, including 130 insurance organizations.

Significant Financing Volume

$2.3B in equipment leases and loans funded in 2025.     

Trusted by Leading Insurance Organizations

$1.8MM Technology Refresh | Mutual Insurance Company

A mutual insurance company needed to refresh their laptops, desktops and network printers. Rather than relying on large upfront purchases, the company sought a financing approach that would support ongoing upgrades while preserving capital for higher-priority investments. 

First American structured a 3-year FMV lease built around the organization’s financial and operational goals. The approach gave them a predictable technology refresh cycle, ensuring staff always has up-to-date tools without large upfront spend. And with First American’s pack-and-ship return program, the company transitioned out aging devices quickly and cleanly—no burden on internal teams, no disruption to productivity.

Laptops sitting on a table in a row.

$5MM Guidewire Software Implementation | Mutual Insurance Company

Over the past five years, a Midwest-based mutual insurance company has invested over $70 million to implement a Guidewire core system, transforming their operations. As the project entered its final phase and the total costs exceeded initial projections, the company needed a new financial strategy to stay on track.

First American, leveraging its deep understanding of the insurance industry, crafted a financing solution to meet the carrier’s specific financial objectives and statutory accounting requirements. Through lease financing, the company converted the software implementation costs into an admitted asset on their balance sheet, strengthening their surplus position. Additionally, First American’s financing solution featured three years of interest only payments during the long implementation timeline, helping the carrier manage expense ratio concerns.

Man typing on a keyboard and using software.

Join Us on the Road!

Looking forward to participating in some upcoming Insurance industry conferences and hope to see you there! 

  • NAMIC’s 131st Annual Convention | September 27-30
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Check out our upcoming webinar on July 21st

Join First American and RBC Capital Markets economist, Gerard Cassidy for a complimentary, CPE-eligible economic forecast. In this session, Cassidy explores the resilience of the U.S. economy, the impact of interest rates and inflation, and key economic trends shaping the market. Backed by real-time data and historical context, this webinar will deliver timely insights for businesses and investors alike.

Register now
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Commercial Card Program

First American presents City National Bank's Visa® Commercial Card that allows businesses to customize their program to meet their specific needs. Used as a business credit card for everyday expenses or a purchasing card for travel and entertainment, this card program offers convenient buying power along with the ability to easily monitor and manage employee expenses online. 

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Interested in Learning More?

Connect with Sonia

Tap into the expertise of one of the country’s largest equipment finance companies.3 Tell me your business needs and we can start exploring funding options today.

1Forrester, US Tech Forecast 2026: What It Means For Insurance

2Tech Radar, Experts warn PC prices could rise even more in 2026 as RAM costs set to soar higher

3Monitor, 25 Monitor 100 (as at October 31, 2025)

All transactions are subject to credit approval. Eligibility for a particular service is subject to final determination by First American. Some restrictions may apply.