Dealer Reinsurance Programs Built for Long-Term Dealer Control
A Transparent Perspective on Reinsurance From Michael Aufmuth, Elite FI Partners
My name is Michael Aufmuth, and I built this site to provide dealers with a clear, transparent resource for understanding dealer reinsurance and automotive reinsurance programs the right way. After years spent inside dealerships and working directly with F&I teams across the country, I have seen how often reinsurance structures are presented without full clarity around fees, administration, claims handling, and long-term profitability. This website exists to change that.
Our focus is simple: transparency, education, and structure. Dealer reinsurance is not a one-size-fits-all solution, and programs such as DOWC, Super CFC, Reinsurance Plus, and other profit-sharing models require careful evaluation to ensure they align with a dealership’s operations, F&I products, and long-term goals. When reinsurance is structured correctly and supported by strong processes and training, it becomes a powerful tool for dealer profit sharing and wealth building. When it is not, it can quietly erode value.
This platform will continue to grow with regularly updated content designed to help dealers make informed decisions. We will be publishing in-depth articles, practical breakdowns of common reinsurance structures, and real-world insights around F&I products, claims performance, and administrative components that impact profitability. In addition, we are launching a video and podcast series where I sit down with respected industry professionals to discuss one core topic: how dealer profit-sharing and reinsurance programs truly work in today’s automotive environment.
Everything you will find here is built to help dealers ask better questions, understand their options, and evaluate reinsurance programs with confidence. Whether you are exploring dealer reinsurance for the first time or reviewing an existing automotive reinsurance structure, this site is designed to be a trusted, transparent resource—focused on clarity, not sales pressure.
Understanding Dealer Reinsurance Beyond the Sales Pitch
Dealer reinsurance is often introduced as a concept rather than explained as a structure. Many dealers are shown illustrations, participation percentages, or high-level projections without ever receiving a clear breakdown of how their reinsurance program actually works. Over time, this lack of clarity can lead to confusion around fees, claims performance, administrative costs, and the true profitability of the program.
At its core, dealer reinsurance is a long-term strategy tied directly to the performance of F&I products, claims management, and the underlying administrative framework supporting those products. The structure matters. Program design, product selection, ceding fees, claims adjudication, administrative costs, tax treatment, and compliance all play a role in whether a reinsurance or profit-sharing program creates real value or simply looks good on paper.
Automotive reinsurance programs such as DOWC, Super CFC, Reinsurance Plus, and similar structures are not interchangeable. Each model carries different levels of risk, capital requirements, cash flow timing, and long-term control. Without understanding how these structures function and how costs are applied within each, dealers may unknowingly accept programs that limit flexibility or reduce profitability over time.
This platform is built to go deeper than surface-level explanations. Through written content, video discussions, and interviews with industry professionals, we focus on breaking down how reinsurance programs are structured, where fees and costs exist, and how profit-sharing models perform in real-world dealership environments. The goal is not to promote a specific program, but to give dealers the information they need to evaluate options with clarity and confidence.
When dealer reinsurance is approached with transparency and supported by proper education, it becomes a powerful tool for long-term planning and dealer wealth creation. When it is not, it becomes just another line item that is rarely reviewed. Our objective is to help dealers understand the difference.
Breaking Down Dealer Reinsurance Fees and Costs
One of the most overlooked aspects of dealer reinsurance is not the structure itself, but the fees and costs embedded within it. Many automotive reinsurance programs appear similar on the surface, yet vary significantly once administrative fees, claims costs, and structural expenses are fully understood. Without visibility into these components, it is difficult for dealers to accurately evaluate the true performance of a reinsurance or profit-sharing program.
Reinsurance programs typically include multiple cost layers that impact profitability over time. These may include administrative fees, ceding fees, claims adjudication costs, premium taxes, and the cost of additional benefits or services tied to F&I products. How these fees are calculated, where they are applied, and whether they are fixed or variable can differ dramatically depending on the reinsurance structure being used, such as DOWC, Super CFC, Reinsurance Plus, or other automotive reinsurance models.
Transparency matters because even small percentage differences can translate into meaningful dollars over the life of a program. A fee that is bundled, capped, or applied at the wrong point in the structure can quietly erode long-term dealer profit sharing. Understanding where costs exist and how they impact cash flow, reserves, and risk is essential for making informed decisions.
This site breaks these components down in detail. Each major cost category has its own dedicated explanation, including how fees are typically structured, common areas of confusion, and questions dealers should be asking when reviewing a reinsurance proposal. These resources are designed to help dealers move beyond surface-level comparisons and evaluate reinsurance programs with clarity and confidence.
Evaluating Your Current Reinsurance Program
Many dealers enter reinsurance programs with the right intentions, but never take the time to fully evaluate how their program is performing once it is in place. Over time, assumptions replace understanding, and important details around fees, claims performance, and long-term profitability can go unreviewed. A periodic, structured evaluation is essential to ensure a reinsurance program continues to align with a dealership’s goals.
An effective evaluation begins with understanding the structure of the program itself. Dealers should have clear visibility into how premiums flow, where reserves are held, how claims are adjudicated, and how administrative and ceding fees are applied. Without this clarity, it is difficult to determine whether a dealer reinsurance or automotive reinsurance program is operating efficiently or simply following the path it was set on years ago.
It is also important to assess how the program interacts with your current F&I products and processes. Product mix, claims frequency, cancellation activity, and training all influence reinsurance performance. A program that once made sense may no longer be the best fit as a dealership’s volume, product offerings, or operational model evolve.
This site provides tools and educational resources to help dealers ask the right questions when reviewing their existing reinsurance programs. From understanding how fees and costs compare across structures such as DOWC, Super CFC, and Reinsurance Plus, to evaluating cash flow timing and long-term control, the goal is to replace assumptions with facts. A well-informed evaluation creates the foundation for better decisions, greater transparency, and stronger long-term dealer profit sharing.
Request a Transparent Program Review
A transparent review of your current reinsurance program starts with clarity, not assumptions. Many dealers have never seen a complete breakdown of how their dealer reinsurance or automotive reinsurance program is structured, where fees are applied, or how profit-sharing performance is truly calculated. This review is designed to change that.
When you request a program review, we take a structured, side-by-side approach to evaluating your existing reinsurance model. This includes reviewing program structure, fee components, claims administration, and how your current F&I products interact with the reinsurance framework. The objective is not to recommend change for the sake of change, but to provide a clear picture of how your program is operating today.
This review focuses on transparency across common reinsurance structures, including DOWC, Super CFC, Reinsurance Plus, and similar profit-sharing models. Dealers receive a clear explanation of where costs exist, how cash flow and reserves are handled, and how long-term control and profitability are impacted by program design.
There is no cost and no obligation associated with this review. The goal is simple: to give dealers the information they need to make informed decisions based on facts, not assumptions. Whether you continue with your current structure or explore alternatives, clarity is the starting point for long-term success in dealer reinsurance.
Frequently Asked Questions About Dealer Reinsurance
What is dealer reinsurance?
Dealer reinsurance allows a dealership to participate in the underwriting profit of certain F&I products by assuming a portion of the risk through a structured reinsurance or profit-sharing program. When properly designed, dealer reinsurance can support long-term profitability and greater control over F&I performance.
How is dealer reinsurance different from traditional profit participation?
Traditional profit participation often provides limited visibility into how profits are calculated. Dealer reinsurance involves a defined structure where premiums, claims, fees, and reserves are managed within a reinsurance framework. The level of transparency and control depends heavily on the structure used and how the program is administered.
What fees and costs are typically involved in a reinsurance program?
Reinsurance programs can include multiple cost components such as administrative fees, ceding fees, claims adjudication costs, premium taxes, and costs tied to ancillary benefits. How these fees are applied and disclosed varies by structure and administrator, which is why transparency is critical when evaluating any automotive reinsurance program.
Are all dealer reinsurance structures the same?
No. Structures such as DOWC, Super CFC, Reinsurance Plus, and other automotive reinsurance models differ significantly in terms of risk, capital requirements, cash flow timing, and long-term control. Understanding these differences is essential before comparing projected results or participation percentages.
How do F&I products impact reinsurance performance?
The performance of a dealer reinsurance program is directly tied to the underlying F&I products, including product design, claims frequency, cancellation rates, and administrative oversight. Training, compliance, and product selection all play a meaningful role in long-term outcomes.
How often should a dealer review their reinsurance program?
Dealers should periodically review their reinsurance program, especially when volumes change, product mix evolves, or market conditions shift. A structured review helps ensure fees, claims performance, and profitability still align with the dealership’s goals.
What happens during a transparent program review?
A transparent program review focuses on understanding how your current reinsurance structure works today. This includes reviewing fees, claims handling, administrative components, and how profit sharing is calculated. The goal is clarity, not pressure to change.
Is dealer reinsurance right for every dealership?
Dealer reinsurance is not a fit for every dealer at every stage. Volume, product mix, risk tolerance, and long-term objectives all matter. Education and transparency are essential before determining whether a reinsurance or profit-sharing program makes sense.
