Do you currently have, or are you in the course of developing customer insurance programs?
Likely that you are using a local insurer to underwrite and provide service with perhaps a commission to the company?
In the environment of possible commission disclosure (UK, Germany) and capping (Australia and US), how sustainable is the commission?
Are you missing out on underwriting profits as well as claims reserves and investment income?
Commission/Fee Income from leveraging channel Insurance related sales and administration activity Reinsurance participation in underwriting risk Full underwriting and administration platform Increasing activity and complexity Life Cycle of Customer Programs
By 2002 GM had $25 million quota share premium from European customer auto programs reinsured to the captive
The potential to grow this business was significant – and to capitalize on the opportunity a new unit was established
By 2003 GMAC Insurance had its own class 3 Bermudian reinsurer with General and Long-term licenses focusing on the GM and GMAC customer programs
The new segregated accounts company has the added advantage of writing business for affiliate companies in separate cells – which in turn enables amended income flow to the affiliates
Process Flow Customer buys vehicle Customer is offered GMAC insurance products Local Insurance Company GMAC Finance Contract GMAC IICL Bermuda Finances vehicle with GMAC Policy and Claims administration GMAC IIS UK Product development, underwriting analysis and benchmarking Consultancy and administrative services Auto Insurance GMAC Life Försäkrings Credit Life Insurance Provided by Provided to Provided to Reinsured to Reinsured by Mandatory in some regions
ITALY Masterlease Customer Auto UK Vauxhall Customer Auto Saab Customer Auto Vauxhall Employee Auto Vauxhall Rental SWEDEN Saab 3 Year Auto Opel 3 Year Auto Chevrolet 3 Year Auto Customer Auto GERMANY Opel Customer Auto CHINA GMAC / SGM Buick Auto GMAC Credit Life GMAC Wholesale AUSTRALIA Holden Customer Auto Holden Customer Gap GMAC Credit Life CHILE Chevrolet Auto Credit Life Hospital Cash ECUADOR Credit Life COLOMBIA Credit Life MEXICO GMAC Credit Life VENEZUELA Chevrolet Wholesale Credit Life CANADA RFC Credit Life ARGENTINA Chevrolet Credit Life GMAC LF GMAC Credit Life in 11 EU countries The GMAC Insurance Experience