The new program’s setup process is similar to a traditional reinsurance program while offering tax advantages akin to a Protective DOWC.
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Protective Asset Protection is unveiling another wealth-building program option with its Protective DOWC Re Program. The solution merges the best of traditional reinsurance with the benefits of a Protective dealer-owned warranty company, or DOWC, giving auto dealers a new tool to super-charge their wealth-building strategies.
The Protective DOWC Re Program’s simple setup process is similar to a traditional reinsurance program while offering tax advantages akin to a Protective DOWC. With the flexibility of Protective DOWC Re, the program can benefit a wide range of our customers, making it an effective option for our wealth-building product offerings. Protective acts as the obligor for all products offered under the program.
Available in throughout the U.S. except in Florida, Washington and Puerto Rico, the Protective DOWC Re Program supports a variety of products, including vehicle service contracts, roadside assistance, ancillary products, maintenance, and limited warranties. Protective is currently seeking additional product options to enhance the Protective DOWC Re offering.
Advantages of the Protective DOWC Re Program include its low capitalization requirement, the ability to leverage third-party investment advisers, and the availability of quota shares. While it shares some similarities with the traditional Protective DOWC, such as taxation structure and commission handling, it differs in aspects like domicile, contract obligor, and earnings patterns.
“The Protective DOWC Re Program is a game-changer for auto dealers looking to optimize their wealth-building strategies,” said Tim Blochowiak, vice president-sales, client wealth, financial institutions, and training for Protective Asset Protection. “It combines the simplicity of traditional reinsurance setup with the tax advantages of a Dealer Owned Warranty Company, all while requiring minimal initial capital. This innovative hybrid solution allows dealers to maximize their financial potential, offering flexibility in investment allocations and supporting a wide range of products. In today’s competitive market, the Protective DOWC Re Program provides dealers with a powerful tool to enhance their long-term financial success while maintaining the ease of operation they need to focus on their core business.”
Dealers interested in the Protective DOWC Re Program are encouraged to click here or consult with their Protective representatives to determine if this wealth-building program aligns with their financial goals.
