Profit Participation Programs
Warranty Solutions offers several programs that are designed for dealers to share in the profits generated from the sales of their Vehicle Service Contracts. A dealer may elect to participate in a Retro Program or a Reinsurance Program.
With Earnings Plus Elite 3, the current Retro Program, dealers have the opportunity to profit in three unique ways:
1) A bonus based on the volume of Vehicle Service Contracts written, which increases as the written volume grows;
2) A profit-sharing bonus based on the underwriting profits on the business a dealer submits; premium allocation will grow as the dealer's written volume grows;
3) Investment income on the reserves held to pay claims.
Through the Dealer Reinsurance program, a dealer owned Reinsurance Company assumes the full experience of the underwriting performance on the book of business the dealer writes. In doing so, the dealer has the opportunity to maximize his underwriting profits, plus earn investment income on the reserves held to pay claims. We can help facilitate the set-up or formation of the Reinsurance company if needed or alternatively offer a Non-Controlled Foreign Corporation solution.
The benefits of these programs include profit sharing, key financial elements that make Warranty Solutions a great Vehicle Service Contract provider. Contact us today at 800-828-1392, and we can provide you with the resources to help you determine which financial solution is best suited for your dealership.