How Arrowhead created a drive to excellence for auto dealers’ loaner vehicles
When leaders in Arrowhead’s Automotive Aftermarket Program saw a need in the marketplace to help auto dealers better organize and insure their loaner vehicles, the team stepped in with a solution: Daily Rental Program. Arrowhead is part of Brown & Brown’s National Programs, a family of MGAs and PAs offering insurance solutions in personal, commercial and specialty lines and services.
It’s a case study in innovation: How National Programs’ resources helped Arrowhead innovate a program for auto dealers’ loaner vehicles. And a case study in successful acquisitions.
Arrowhead was acquired by Brown & Brown’s National Programs in 2012. They, in turn, acquired management of Zurich’s Automotive Aftermarket Program when longtime Arrowhead carrier partner Zurich Insurance transferred operations, accounting, marketing, underwriting and customer service of their program to Arrowhead.
Zurich was looking for a better way to manage the large fleets of courtesy vehicles it insures for auto manufacturers.
“We’re customer-led, meaning we listen to what our customers are saying and work with them to deliver what they need,” says Ryan Whitney, vice president and head of programs and rental sales, Zurich Alternative Markets. “When Mercedes told us they wanted simplicity and ease of use, we turned to Arrowhead because we knew from experience that they could make it happen.”
For auto manufacturers and dealers, it can be an overwhelming task, keeping track of all the vehicles coming and going from their lots. Keeping records on loaner vehicles and managing accident claims is a huge investment of time and money, especially when an inefficient system is difficult to learn and still requires manual intervention.
“The dealers weren’t using the existing system, so there was a lack of compliance with DOI requirements for proof of insurance,” says Adam Weber, Arrowhead’s president of the Daily Rental Program. “Plus, the manufacturer didn’t know what was going on claims-wise, because data input was inconsistent.”
The solution? The Daily Rental Program, automated for ease, speed and accuracy
Working with Mercedes and Zurich, Arrowhead built an online portal where dealers can easily keep track of vehicle insurance and registration and download real-time reports. Manufacturers have an enterprise view of all loaners at every dealer and can quickly demonstrate compliance with DMVs and state insurance departments. Every party sees additional benefits:
- Dealer: The dealer reports a claim on the portal by answering a series of questions and uploading supporting documents. Arrowhead receives the report, contacts the dealer for verbal confirmation and tenders the claim to the driver’s insurer, while reporting it to Zurich.
- Manufacturer: The manufacturer sees a dashboard on all active and inactive vehicles, including claims information, so that they’re informed when they renew their coverage.
- Carrier: The system captures data in real time, giving Zurich the confidence that all program guidelines are being followed. Zurich can see where vehicles are unexpectedly spiking, when a dealer goes online and adds a vehicle and can pull rental agreements to see what information is being gathered from the driver.
Mercedes, with 116 dealers on the Daily Rental Program, went from sometimes waiting 30 days to report registration fees to having new vehicles populate the system within 24 hours.
“Arrowhead is our best vendor, especially as far as responsiveness is concerned; they have a can-do attitude,” says Dan Langford, Operations Manager, Daimler Insurance Services. “If we have an issue, the response is ‘let’s figure out how we can.’ They can’t always do everything, but Adam is always thorough in explaining why that’s not feasible.”
At Subaru, all 600+ participating retailers were on the Daily Rental Program within 90 days of launch, compared to about one-third who were using a previous system.
“About 20,000 vehicles flow through our system in a month,” says Matia R. Marks, insurance manager, Subaru of America, Inc. “Using outdated systems to keep track of that many vehicles is unthinkable, so we appreciate the certainty, ease of use and speed delivered by the Arrowhead system.”
At Hyundai, Theresa Blackburn says the COVID-19 crisis hit during onboarding, yet the transition was seamless.
“We’re making our service rentals available to hospitals, first responders and families during this crisis. It wouldn’t be possible without the partnership of Arrowhead and Zurich,” says Blackburn, who is assistant manager, Service Business Support.
“Dealers have so many systems, so the trick is to take the friction out of the process,” says Weber. “We continue to learn and that keeps us adjusting to fit their needs. The next need may be telematics, or electronic insurance cards. We’ve got to keep evolving in order to stay ahead.”
National Program’s focus on innovation
“National Programs – and in this case, Arrowhead, doesn’t invent the technology. We bring the technology and know-how to increase efficiency, reduce expenses and create a runway for profitable growth for our partners,” says Tom Kussurelis, Arrowhead’s chief operating officer and <title> of National Programs. “That’s exactly what we did for Zurich and it is truly a differentiator.”
This blogpost originally appeared on Arrowhead’s corporate blog. It has been modified and updated to better fit the needs and interests of National Programs.