Dealer Reinsurance

The obvious advantage of ownership of a reinsurance company is the opportunity to realize a greater share of the profits form the vehicle service contract business they produce.  There are three distinct areas from which these increased profits generally arise: Underwriting Profit, Investment Income, and Taxation

Administration Services Provided

 

  • Formation of the Reinsurance Company
  • Quarterly Cession Reports
  • Annual Renewal of Company
  • Annual Tax Planning Meeting
  • Tax Returns
  • Financial Statement
  • Books and Records
  • Claims Administration
  • Underwriting
  • Insurance
  • Product
  • Point of Sale
  • State Approval and Updates
  • Cancellation Processing
  • Transfer Processing
  • Training and Education

The number of companies forming or considering forming producer owned reinsurance companies has grown significantly in the past several years.  The movement to marketing insurance through producer owned reinsurance companies is not a fad or a temporary aberration, but is a natural response to changing market conditions.

 

Click here to view a memo regarding dealer reinsurance.