How it works
From first call to a reinsurance company you own
Four steps
The short version
Discovery call (20 minutes)
We look at your monthly contract volume, products, pricing and state. If it doesn’t make sense for your store, we’ll say so.
Program design
We recommend the right structure, a retro program or your own company, and walk you through the economics in plain language.
Setup
We form your reinsurance company, open the trust and operating accounts, load your contract forms into your DMS or menu, and connect claims administration and reporting.
Launch & run
Your F&I team sells as usual. We run the company: books, filings, claims coordination and reporting. You review a short performance report each quarter.
Where the money goes
Same sale. Different ending.
Today
- A customer buys a service contract Sold by your F&I team, as usual.
- Your markup stays in the store Front-end profit.
- Your dealer cost goes out Sent to an outside warranty company.
- Their reserves pay the claims Held and managed by someone else.
- What’s left over is their profit You never see the back end.
With your own reinsurance company
- A customer buys a service contract Same products, same sales process.
- Your markup stays in the store Front-end profit, unchanged.
- Your dealer cost goes to your company Your own reinsurance company.
- Your reserves pay the claims Held in a trust account, protecting customers first.
- What’s left over stays with you Underwriting profit belongs to your company.
Simplified illustration. Actual results depend on claims, cancellations, products and program costs, and are not guaranteed.
The full lifecycle
Ten stages, start to finish
- QualificationYour volume, products and history.
- StructureChosen to fit your state and your volume.
- AgreementsSigned between you, Quantum Re and your reinsurance company.
- FormationYour company is formed, with its governance documents.
- AccountsThe trust and operating accounts are opened.
- SystemsSoftware and reporting access are set up.
- Contract formsState-specific forms are activated in your DMS or menu.
- SellingContracts are written and reserves are deposited.
- ClaimsClaims are administered under each customer’s contract.
- ReportingQuarterly reports, annual filings, and distributions once the book has seasoned.
Two accounts, simple rules
Where your company’s money sits
- Reserve / trust account. Holds the reserves that back your customers’ claims.
- Earned-premium account. Receives premium as it is earned over each contract’s life.
The reserves protect your customers first. Profit is what’s left after claims are covered.
Who does what
Your job is short
| You | Quantum Re and partners |
|---|---|
| Sells contracts as usual | Forms your company and opens its accounts |
| Decides on coverage, pricing and claims philosophy | Contract forms and state compliance |
| Reviews the quarterly report | Books, records and annual filings |
| Claims coordination through our partner administrator | |
| Carrier, bank, software and vendor coordination | |
| Reporting and portfolio monitoring |
Find out what your service contracts are really worth to you.
Book a 20-minute call with Andrei. We’ll look at your volume, your products and your state, and tell you plainly whether your own reinsurance company makes sense.