How to Evaluate a Dealer Reinsurance Program and Avoid Costly Mistakes

Switching a dealer reinsurance program can protect long term value or destroy it if done incorrectly. This article explains when it makes sense to switch, when staying put is the better decision, and how dealers should evaluate structure, transparency, and risk before making a change.

Evaluating a dealer reinsurance program requires more than checking participation or volume. Fees, reserve methodology, reporting quality, control, and ongoing support all determine whether a program builds long-term value or quietly erodes profit. This article outlines a practical framework dealers can use to assess whether their current reinsurance structure is truly working.

Dealer reinsurance success is not determined by participation alone. Hidden fees, reserve assumptions, reporting quality, and control over structure all play a critical role in long-term performance. This article explains why two dealerships with similar volume can experience very different outcomes and how structural decisions quietly compound over time.

Many dealer reinsurance programs can be improved without being replaced. This article explains how side by side comparisons, administrator changes, and execution improvements can upgrade performance while preserving reserves and long term value.