Program Comparison Tool

It is a simple guidance tool that helps a dealer see which reinsurance structures may be worth reviewing based on contract volume and goals. This tool does not calculate profit or show dollar estimates. It points you toward the structures to discuss and to the pages that explain each one.

Volume is an important starting point, but it does not determine the best program on its own. Product mix, claims performance, reserve structure, control, tax and accounting strategy, and long term goals all matter. The tool uses volume to narrow the conversation, not to make a final decision.

Projected profit without full program details can be misleading. Claims performance, reserves, pricing, product mix, administrative fees, and the structure itself all affect outcomes. A proper review uses accurate dealer specific information rather than generic assumptions.

Lower volume stores often start by reviewing a Retro program, which is a lower barrier way to participate without forming a company. If long term ownership and wealth building are goals, CFC reinsurance may also be worth discussing. The right path is confirmed with a review.

Growing groups and higher volume dealers often review CFC, Super CFC, NCFC, and DOWC. Each offers a different level of ownership, control, and complexity. Adding rooftops or wanting more control usually points toward the more advanced structures.

A Dealer Owned Warranty Company may be worth reviewing when the goal is maximum ownership, a domestic structure, control, and long term enterprise value. It is more complex than many other structures, so it should be compared carefully against CFC and Super CFC.

A Retro program is a profit participation agreement with no entity to form. A CFC is a Controlled Foreign Corporation the dealer owns and controls. Retro is participation by agreement; CFC is participation by ownership, with more control and investment income in exchange for more setup.

A CFC is an offshore captive that reinsures eligible products under a premium cap. A DOWC is a domestic company that owns and issues its own warranty product with no premium cap and the most control, in exchange for more capital and administration. The CFC vs DOWC choice usually comes down to control and capital.

Yes. We help dealers compare their current structure against the alternatives on their real numbers, review fees and administration, and identify areas that may deserve additional questions. The review is educational, whether or not you ever change anything.

Yes. Reinsurance structures involve tax, legal, and accounting considerations that vary by dealership and by state. Nothing on this page is advice, and final structure decisions should always be reviewed with qualified tax, legal, accounting, and reinsurance professionals.