Insurance = Spreading the risk of loss across the pool of individuals as not to cause financial hardships upon the individual facing the actual loss.
Over the past few months, as many of my loyal readers will know, I have been trying to find ways to make my small, leasing and finance company more profitable and increase the ROI while decreasing the ROI timescale.
So far every penny invested into this company has come from my pocket, and it is beginning to wear thin. In search for increased profits, I have decided to get my California insurance license. I am on my third lesson in my training, and I feel like a starving student back in college. I realize now how much I have been taking for granted. I do not miss those days all. But, here they are again.
It is my rationale that since I am financing equipment and that insurance is mandatory on every pieces of equipment that is on my books, that I should be able to offer insurance products as well. Not only will this increase my profits. But theoretically it should also decrease my risk as well since I will be immediately notified, if not intimately involved in the cancellation of an insurance policy.
One of the risks of a Finance and Leasing company is collateral loss due to expired insurance. Unfortunately, many insurance companies fail to notify secured parties, if there is a lapse in coverage. If the end-user chooses to purchase my insurance coverage, then that should alleviate this issue. If not, then at least I will be able to speak the same language as the other insurance agents.
To me, this is another product that I may offer my vendors and customers to ensure a streamlined single point of service. The more product and service offerings that I am able to efficiently provide, the lower the chance that my end user will shop multiple finance companies and dealerships. Well, that's the theory, anyway.
How many of you include insurance as part of your product offering?
Have you seen a good return on your investment?
Are you effectively using this as a profit center?
What advice can you offer that would streamline my efforts?
As always, thank you for reading my ramblings and I hope that you continue to have a good day!
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