Reinsurance Solutions: Programs That Drive Dealerships to Greater Success

If you own a dealership and you're thinking of ways to increase your profit, why not create your own reinsurance company? This way, you have more control over the F&I products that you sell to your customers. There are a good number of reinsurance solutions being offered by various F&I providers that you can choose from, which means you're bound to find one that fits your goals.

Reinsurance solutions in a nutshell

Reinsurance solutions are programs offered by an F&I provider that will allow dealerships to be fully in control of the after-sales products they offer like extended service contracts, Powersports GAP, tire and wheel protection, and so on. Where once these were offered through a third-party provider, this time around, the dealership will offer their own products; no longer acting as an intermediary of sorts between the provider and the customer.

What's in it for dealerships?

Apart from having more control over their F&I offerings, dealerships are now allowed to directly receive the premiums and distribute these according to the stipulations of the reinsurance program. A typical scenario would be the dealership receiving the premium, which they will then distribute for the claims reserve, for the third-party provider's fee, and administrative costs.

Dealerships receive a portion of the underwriting profits. Whatever isn't used in the reserve will be considered as the dealership's underwriting profit. It's up to the owner how they will use these reinsurance profits, but these are invested in various investment tools. This is how dealerships grow their assets/portfolio, and this is how they improve their financial standing.

Earn from premiums, not just commissions

Dealerships earn from the F&I products they offer usually on a commission basis where the third-party provider gives them a certain percentage for every product sold. With reinsurance solutions, they no longer rely on commissions alone. They not only get a share of the underwriting profits, but more importantly, they now have the resources to make other investments. Some dealerships also use their underwriting earnings to increase and/or improve their offerings or open a second branch.

Reinsurance gives dealerships the authority and flexibility needed to make decisions that will benefit their business and customers.

Torque Group Reinsurance Solutions

Torque Group is a trusted provider of various F&I products. Now you can partner with them to build your own reinsurance company.

Call Torque Group at (800) 859-0590 to discuss reinsurance programs tailored to your dealership's financial goals and customer base.