The evolution of technology is reshaping the financial services industry including insurance and dealerships. Recently, dealerships manually entered all the information into administration portals which took more time and created more errors. Even today integration cost are high for smaller independent dealers.
Implications of manual processes:
Manual processes create more errors. This leads to lost time making corrections to contracts and needing to do re-contracting. Slows down the funding process to get paid for vehicles. Takes time away from income producing activities. Customers are inconvenienced with having to come back to the dealership to make the corrections.
Administrators years ago would provide a rate book and you would have to look up each vehicle rate manually and enter it into the system. From personal experience, there were mistakes and errors that cost everyone time. E-Rating has saved a few trees and also reduced the errors when it comes to properly rating a contract, but is that where it stops?
Are there other manual processes that cause errors that if technology was leveraged it would reduce errors and lost productivity. DealerAdmin.io believes that technology can be the key to reducing errors in many areas of administration and dealership operations.
Measure risk accurately:
One of the keys to a successful reinsured program to properly rate policies. To do this the administrator needs to accurately measure the risk. To do this it is all about good data. If the data has errors, your program is flawed and it will either cost you in lost sales due to reserves being too high or if a reserve is too low, it will have a negative impact on your programs. With the use of a.i. and machine learning risk can be measured more accurately reducing errors in rates.
The dealership and the administration are constantly working for the benefit of their customers. It is about having useful data at your fingertips that help you make better decisions. Two Examples:
- Claims: If you are selling used vehicles and reinsuring your program you probably begin to look at claims differently as compared to when you just sent money to an administrator. If your claims are high and you are able to see that 33% of your claims are within 35 days after the vehicle is sold and it is 50% of the dollar amounts, how could you use that information? What is it telling you? Either you have a reconditioning problem or you buying the wrong vehicles.
- Repossessions and Mechanical Failures: I think it is fair to say most people do not want to pay payments on a vehicle they can’t drive. If you are a BHPH Dealer and you knew a certain model vehicle had mechanical problems 12 months into the loan and ended up being a repossession, would that impact your decisions? Of course, it would!
My good friend Richard Tucker provides insight to his clients regarding which models to buy and where to buy them from. It has helped his dealers increase profitability by having good data to make better buying decisions.
To learn more about what Richard does, you can go to www.customizeddfs.info are call Richard at 972.854.88056..
- At DealerAdmin.io believe that technology can help dealers mitigate errors and provide better data quicker so you are not wasting valuable resources on the wrong things or the wrong vehicles.
The DealerAdmin.io is all about establishing a better connection with the customers and the dealerships. It helps streamline the system, automation, easier process, and better tools to extract more out of your programs. The administration makes sure that with fewer errors, it is possible to cover stronger gross profits.