To date, I have not been able to Google a definition that simplifies its relevance to the auto industry. Yet, franchise auto dealers, along with a growing number of independent auto dealers rely on reinsurance portfolios as their primary vehicle to ensure their long term wealth.
The layman definition is that you are allowed to participate in the underwriting profit of the F&I product policies your dealership sells to consumers. You participate in both the profits and assume the risks. This is a broad explanation of an extremely powerful and profitable process that allows auto dealers, executive managers, and general managers control a very lucrative part of their automotive sales success. I encourage you to reach out to one of our team members for a complete analysis of your dealership.