Updated May 2019

The lack of IRS guidance on how dealers should view their reinsurance programs in light of the Tax Cuts and Jobs Act of 2017 has created some uncertainty this tax season. This isn’t the first nor is it likely to be the last time dealers will face ambiguity from changes in the tax code.

That’s why it is important for dealers to look beyond taxes to take a well-rounded view when evaluating participation structures. In general, dealers should only consider switching if another model makes better sense to the overall business and goals. For any tax-related issues, dealers should always consult a tax expert.

Tax implications are but one of several important considerations including cashflow, risk, investment and claims goals.

Each participation structure has certain strengths and each dealer has their own personal needs and objectives. For this reason, Assurant provides a variety of participation vehicles and is flexible and transparent in partnering with dealers to find the best options that meet their needs today and tomorrow.

There’s temptation in the market currently to use the absence of IRS guidance to manufacture fear and push dealers to certain options without regard to a dealer’s goals and objectives. That will never happen at Assurant.

At Assurant, we don’t promote one reinsurance structure over another.

Instead, we provide multiple participation structures and help dealers find the right solution based on their risk, tax, cashflow, investment and other goals. And we continue to help dealers adjust their position as their needs change, without any switching costs or loss of productivity at the dealership.

Times change, goals change and we make sure our dealer clients can change with them.

Assurant forms, manages and cedes to a variety of participation vehicles: NCFC, Self-Insured, CFC, Retro and DOOC. We have multiple options and can put dealers into the best model that matches their goals and adjust as necessary without any switching costs or loss of productivity at the dealership. And we’re fully confident in the viability of all our reinsurance participation models.

See our reinsurance page for a primer on the main benefits of several participation programs.

Have any questions? Schedule a simple pro forma consultation to see if you are getting the most value out of your current plan.