EFG Launches Reinsurance Health Check to Address Dealer Volatility
Event summary
- EFG Companies launched the Reinsurance Health Check on May 12, 2026, a diagnostic tool for automotive dealers to assess reinsurance exposure.
- The tool evaluates six core areas, including product mix, coverage structure, underwriting discipline, and early claims signals.
- Eric Fifield, Chief Revenue Officer at EFG, highlighted that rising claims severity, higher repair costs, and delayed reserve adjustments are pressuring dealer reinsurance programs.
- EFG aims to help dealers stabilize performance and protect profitability amid volatile market conditions.
The big picture
EFG’s Reinsurance Health Check addresses a growing challenge in the automotive dealer space: the misalignment between traditional reinsurance programs and current market realities. Rising vehicle values, labor costs, and claims severity are creating conditions that legacy programs weren’t designed to handle. The tool aims to help dealers preemptively adjust their strategies to protect profitability, reflecting broader industry shifts toward proactive risk management.
What we're watching
- Market Adaptation
- How quickly dealers adopt EFG’s Reinsurance Health Check to mitigate reinsurance strain.
- Profitability Impact
- Whether the diagnostic tool can effectively stabilize dealer profitability amid rising costs.
- Industry Trends
- The pace at which rising claims severity and repair costs continue to pressure dealer reinsurance programs.
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