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EFG Aims to Help Dealers Face Rising Reinsurance Volatility

Rising claims severity, higher repair costs and delayed reserve adjustments are putting new pressure on auto dealerships' reinsurance programs.

May 20, 2026
Eric Fifield, Chief Revenue Officer of EFG Companies, smiles in a blue suit and glasses against a red gradient background. The graphic features the headline “EFG COS.” and the AutoDealer Today logo.

EFG Chief Revenue Officer Eric Fifield says that, 'Over several years, competitive pricing decisions, rising vehicle values, and increasing labor and parts costs created conditions most reinsurance programs weren’t built to absorb.'

Credit:

EFG Cos. | Auto Dealer Today

2 min to read


EFG Cos. has launched a Reinsurance Health Check, which it describes as a concise, practical diagnostic designed to help retail automotive dealers identify exposure, stabilize performance, and protect profitability.

Dealer principals across the industry are feeling renewed pressure on their reinsurance programs as rising claims severity, higher repair costs, and delayed reserve adjustments converge. EFG said its program evaluates whether today’s market conditions are quietly weakening their reinsurance performance and where adjustments can still make a meaningful difference.

While past contracts and products can’t be changed, what comes next is still within a dealer’s control. For more information, visit its website.

“What many dealers are experiencing now didn’t happen overnight,” said EFG Chief Revenue Officer Eric Fifield.

“Over several years, competitive pricing decisions, rising vehicle values, and increasing labor and parts costs created conditions most reinsurance programs weren’t built to absorb. The Reinsurance Health Check helps dealers step back, understand their exposure, and focus on the areas that matter most going forward.”

Six Areas Dealers Should Review

The Reinsurance Health Check walks dealers through six core questions that often signal reinsurance strain well before it shows up in pricing:

  • Product mix and volatility: Is your product mix balanced to reduce volatility while still driving income and customer satisfaction?
  • Coverage structure alignment: Are coverage terms, deductibles, surcharges, and limits aligned with today’s market realities, not legacy assumptions?
  • ​Underwriting discipline: Are underwriting standards guiding performance, or are adjustments happening reactively after losses occur?
  • True reinsurance risk exposure: Do you have clear visibility into how much risk remains on the books and where profitability may be leaking?
  • Early claims signals: Are early claims treated as warning signs that point to process, product, or training issues?
  • Lender and financing effectiveness: Are lender rates and loan structures supporting both customer affordability and dealership goals?

A misconception is that reinsurance pressure starts with pricing. However, pricing is often the last signal. The real drivers usually appear earlier in product mix decisions, program structure, underwriting discipline, and early claims activity.

The Reinsurance Health Check is intended to highlight underlying issues and identify steps dealers can take to bolster portfolio performance and protect profitability.

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