NORCROSS, Ga. -

APCO Holdings is looking to cater to the wide array of approaches to retailing vehicles with its latest strategy for reinsurance programs.

The provider and administrator of F&I products and home to the EasyCare and GWC Warranty brands said this week that it now is offering dealerships a consultative approach designed to match dealers’ unique business situations and goals with an appropriate reinsurance program structure.

The company explained the approach aims to educate dealers amid an increasingly complex reinsurance market, so they can better understand options and increase the probability of success.

“Multiple factors come into play when choosing a reinsurance program structure, but many dealers are presented with a one-size-fits-all approach that is not appropriate to their unique business models as well as their short-, medium- and long-term goals,” said Dave DeCredico, senior vice president of business operations at APCO Holdings.

In the past several years, APCO Holdings acknowledged significant activity has affected dealer F&I participation programs, including an increased number and variations of reinsurance program structures available, tax law changes that require disclosure on multiple levels, and increased market misinformation.

With APCO’s Consultative Approach, the company said a dealer receives an in-depth consultation from a reinsurance expert to determine which equity participation program best fits their individual needs.

APCO noted that the discussions can evaluate many factors including anticipated volumes, risk tolerance, programs to be written, income objectives, anticipated distribution plans and investment strategies.

APCO offers a variety of reinsurance program structures to dealerships, including non-controlled foreign corporation (NCFC), controlled foreign corporation (CFC), dealer owned warranty company (DOWC), retrospective premium program as well as a hybrid structure combining more than one of these options.

APCO’s consultative approach also includes recommendations and training for aligning a dealership’s F&I product strategy with its reinsurance strategy, in order to maximize profitability.

“This is an area of missed opportunities for many dealers,” DeCredico said. “The close alignment of F&I and reinsurance strategies is key to maximizing program profitability.”

DeCredico added that APCO’s consultative approach also includes an up-front evaluation, quarterly reinsurance statements and an in-depth, annual review of reinsurance positions to discuss new opportunities and areas for improvement.

For more information about the APCO Holdings’ family of brands, visit apcoholdings.com.