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Does Reinsurance Make Sense For You?
Feel free to edit any section in yellow. This section is for monthly volume of Vehicle Service Contracts and Limited Warranties.
Key points to look at:
Reserves - Money allocated from each contract to pay for claims. This number can fluctuate depending on vehicle make and miles. Vehicles that have higher losses have higher reserves.
Loss Ratio - This is the average losses. These numbers can also fluctuate based on the type of vehicles you sell. Some dealers run at a 20% loss ratio. Others run at 80%. Anything under 100% is profit for you.
Investment Income - All of the money is invested. You control the risk factor. Reinsurance companies generally see a 4%-7% return.
We decided to add a ProForma to our website because no one else does. These reports are shrouded in secrecy. We believe in total transparency and that starts with giving you access to our online ProForma. If you would like a custom ProForma based off of your specific store, please reach out to us.
We make reinsurance easy. We have a ProForma below so you can see how much money you can make with reinsurance.