A smiling Sarah Kerslake, Allianz Automotive State Manager

Sarah Kerslake, Allianz Automotive State Manager (QLD), explains how our Premier Motor Insurance policy can provide dealerships with a reliable, long-term source of income.

Business Managers can sometimes forget that motor insurance can provide a significant source of income for their dealership over an extended period.

There’s a good reason why many dealership CEOs and Dealer Principals turn their attention to offering insurance to their customers. Dealerships that offer the Premier Motor Insurance product to their customers don’t just receive a financial benefit for the policies they sell. Giving customers a quality insurance product can also deliver a long-term benefit to both the customer and the dealership itself.

Allianz is one of the few insurers who guarantee their dealer partners the right to supply a new vehicle replacement in the event their customer’s vehicle is deemed a total loss and less than 3 years old from its first registration.1 We also use genuine manufacturer replacement parts in our Premier Motor Insurance product.2 We're passionate about keeping our partners informed and trained in the industry, and our Account Managers provide regular training sessions with our partners. Additionally, we’re in the process of trialling several programs designed to improve customer retention and promote profitable growth within our partners’ Motor Vehicle Insurance portfolio.

We aim to keep the customer in the Dealership ecosystem

We recognise that our dealer partners currently face two significant challenges regarding how they offer motor insurance to their customers.

The first is how best to offer a policy to a car buyer whose vehicle may not be delivered for some time.

The timing challenges in the market are forcing dealerships to consider when the insurance conversation should be had with a customer and when the best time is to quote.

The second relates to regulations brought about by the Royal Commission into the financial sector – specifically, anti-hawking.

While Business Managers may obtain their customer’s consent to be contacted about the financial product (insurance) when the customer is purchasing a car, that consent may no longer be relied upon in one to two years’ time when their vehicle is ready to be delivered.

Addressing both challenges requires Business Managers to educate their customers on the merits of dealership insurance and find innovative ways to offer an insurance product. When customers understand that the dealership offers Original Equipment Manufacturer-branded insurance, and that an up-to-date quote can be organised close to their vehicle delivery date, they may be motivated to take out a Dealership policy when the time comes.

We find ways to bolster dealer revenue

The benefits our dealer partners may enjoy when they provide Premier Motor Vehicle Insurance products to their customers, go far beyond the commissions paid to dealerships.

Our attractive replacement vehicle guarantee ensures dealerships receive repeat vehicle sales whenever a vehicle purchased from the dealership is written off or stolen.1 Every year, we oversee millions of dollars’ worth of replacement vehicle sales in Australia.

There is also a significant opportunity for dealerships to bolster their income stream through our genuine parts offering.2 If a dealership is a parts wholesale dealer, repairers will source parts from them.

We have an eye on the future

I’m excited about the initiatives we’re putting in place to help dealerships grow income streams and build sustainable customer portfolios.

Dealerships know all about our Premier Motor Insurance product but not many know we offer a used car insurance product. This product provides many dealerships with incremental revenue once they offer both products and can capture 100 per cent of the market.

We recognise that our customers increasingly want to transact online, so we’re working on some improvements to cater for this growing need. We’re currently working on enabling customers to purchase insurance directly from the dealership website. It’s still our product, but the customer has the opportunity to quote the insurance within the dealership’s digital environment.

We’ve also rolled out a new campaign to drive renewal rates for our partners. In the past, we would send a renewal notice to our customer – now we start a conversation with them earlier to remind them of what’s included in our product. That way, when they get their renewal notice, they understand our product benefits, and the increase in conversion flows-on benefit to the dealership.

I'm passionate about what Allianz does to keep customers within the dealership ecosystem and can’t wait to see the impact our new initiatives have on customer retention and dealership revenue - Sarah Kerslake, Allianz Automotive State Manager (QLD).

1 If your vehicle was purchased new or as a demonstrator model by you, and becomes a total loss within three years (for Premier Comprehensive Insurance) or two years (for Allianz Motor Insurance) of the starting date of the original registration, we will replace your vehicle with a new vehicle of the same make, model engine size, features and paint type if such a vehicle is available in Australia..

2 If we are unable to repair the part, new genuine manufacturer parts will be used where locally available or genuine reconditioned or recycled manufacturer parts where a new part is not available. Where a genuine new or used part is not locally available we may use parts that meet Australian Design Rules..

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 (“Allianz”). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past, present and emerging.