Reinsurance Costs: See the Full Breakdown
I spend a lot of time in dealerships where I’m told, “We’re already in a reinsurance,” or “Our owner has their own warranty company.” Most of the time, that statement is said with confidence, and it should be. Reinsurance can be a powerful tool when it’s structured correctly. This page isn’t about changing partners or disrupting long-standing relationships. It’s about giving you a clear way to understand what you’re paying, how those costs are structured, and whether you have the transparency you’re entitled to. At the bottom of this page, you’ll find a simple worksheet designed to help you clearly see the full picture.
Why Transparency Matters — Even in Strong Reinsurance Programs
Even well structured reinsurance programs benefit from transparency. Over time programs evolve fees get bundled and decisions made years ago may no longer reflect today’s goals or volume. Understanding how costs are layered including administrative fees ceding fees claims handling and other components does not weaken a strong program it reinforces it. Transparency is not about questioning partners or undoing what has been built it is about having clear visibility into how the structure performs today so you can manage it with confidence going forward.
Identifying What You Are Paying Today
Most dealers already pay these costs today. They exist whether they are clearly itemized or bundled into a single administrative number. Over time those details can live in different places including administrator agreements agent summaries pro formas or financial statements. The goal here is not to question those costs or suggest something is wrong. It is simply to bring everything into one place so you can clearly see what you are paying and how those costs fit together within your reinsurance structure.
Download the Reinsurance Cost Worksheet
The worksheet below is designed to help you organize the costs already associated with your reinsurance program in a clear and simple way. It walks through the total administrative fee per contract and breaks that number into the individual components that make it up. This process typically takes ten to fifteen minutes and does not require changing providers or involving outside parties. It is simply a tool to help you see the full picture of your current structure in one place.
What Happens After You Complete the Worksheet
Once the worksheet is complete most dealers have a clearer understanding of how their administrative fee is constructed and where costs are allocated within their reinsurance program. Some choose to stop there simply knowing they have visibility and alignment. Others decide to compare their structure to alternative administrators or agencies to better understand how pricing support and claims handling differ. Either path is valid. The purpose of this process is not to force a change but to give you the information needed to make informed decisions with confidence.
Optional Comparison Support Through Elite FI Partners
Some dealers choose to take the next step and compare their current structure to other administrative and reinsurance options available in the market. If that is helpful Elite FI Partners can walk through your completed worksheet with you and provide a side by side view of how different administrators structures and fee models compare. This does not require ending existing relationships or making a decision. It is simply an opportunity to see what alternatives look like using the same cost framework so the comparison is fair and easy to understand.