MOVES by AWN Insurance to take control of the aftermarket insurance sales process means dealers no longer have to worry about compliance matters. They don’t have to worry about oversight by the regulator nor the conduct risk. That is all now the obligation of AWN Insurance.

The managing director of AWN Insurance, Damian Chadwick, told GoAutoNews Premium: “This update is great for dealers. All dealers need to do is obtain the customer’s consent, send through the referral, and we take care of the rest.

Damian Chadwick

“We only use the data provided for the agreed purpose (the insurance quote). Once the 15-day quoting period has expired, all customer quote details are redacted.”

Mr Chadwick said that instead of a commission, the dealer now gets a fixed referral fee based on the value of the quoted insurance.

“By limiting the dealers’ involvement to that of referral only, we can confidently address all the concerns of the regulator on exactly how the product is being sold. Our platform delivers a consistent customer experience utilising smart contract technology and document fulfilment,” he said.

“So, whereas in the past we were relying on an Authorised Representative (AR) model to govern the sales process, our platform now has a quoting application which provides an elevated level of compliance. This ensures that insurance products cannot be produced unless the customer has received and accepts the quote, acknowledging the product’s terms and conditions.”

“This level of sophistication is the first of its kind for add-on insurance. Allowing the insurer to address all regulatory concerns raised in the Haynes Royal Commission. The shift in conduct risk and sales obligation insulates dealers and provides a uniformed, compliant customer experience.”

“Another advantage is the streamlined and cost-efficient nature of the quoting process. The time required to provide a quote is far less than completing a full sales application. Our platform has been updated with a quote dashboard that tracks the life span of each quote in real-time.”

“System validations and tokens ensure that the strict DSM rules are followed, and no insurance product can be issued before the mandated 5-day wait period. By taking control of the sales process, all compliance headaches for the dealership have been removed.”

“The referral process for dealers is something that can be done manually in as little as 90 seconds.

“We also offer an Application Programming Interface (API). While the per-unit revenue is less than dealers have experienced in the past, the program has a higher ROI due to the minimal resources required and the efficiencies gained from quoting on a mass scale.

“Pilot dealers transitioning from selling to quoting warranty have experienced a significant increase in the uptake rate and that is expected to rise with the introduction of our subscription plan.”

Mr Chadwick said that apart from the referral fee, “dealers also insulate finance income”.

“When customers insulate themselves by selecting insurance, a by-product is that the dealer and finance company also receive a level of protection.

“Insurance customers are less likely to default on finance payments and more likely to return to the selling dealer in the event of a total loss for a replacement vehicle. Protecting car loans will become a growing concern as Australian households face further budget restraints and inflationary pressures.”

“I believe that our quoting application, together with our subscription plan, has answered the concerns that existed concerning the sale of insurance.

“We have gone to great lengths to ensure our products are fit for purpose. There are several feedback loops within AWN Insurance to maintain our standards. We are currently working on introducing AI agents into the claims assessment process to improve the claims experience. Claims data and customer experience are essential to ensuring continuous product development.”

“Vehicle technology is developing exponentially, and we are committed to ensuring that our products and systems keep pace. We have established and will continue to maintain strict guidelines to ensure a meaningful relationship between customer exposure and actual coverage.

“Our dealers have been requesting a dedicated EV and Hybrid warranty for some time. I am pleased to announce that both products are in development,.”Mr Chadwick concluded.

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