Zurich Financial Services has entered into the dealer insurance market, with a decision to partner up with Toyota Financial Services (TFS) and Aioi Nissay Dowa Insurance Company to launch a new dealership insurance product.

The TFS Account dealer insurance product is said to support TFS-affiliated dealers by removing the complexity and expense associated with insuring their dealerships, freeing them up to concentrate on the core function of running their dealership.

Zurich general manager of underwriting – corporate, Sean Walker, said the deal enables Zurich to enter the dealer insurance market. “It’s wonderful for us to be a part of a disruptive business strategy, which is truly innovative in the market,” he said.

Walker added: “Dealership insurance has been one of the missing links in the value chain, and TFS’ House Account dealer insurance is fundamentally a customer-focused product that allows dealers to focus on managing their business risks rather than being distracted by the administration of their insurance renewals.”

Dealership insurance has been seen “as a high exposure and volatile business by some insurers”, according to TFS general manager for insurance and operations, retail finance and insurance, Don Rossell, and market consolidation has meant there are fewer insurance solutions in the market.

“We believe our dealers should not be bound by the conditions some insurers were pressuring them into and, by tapping into the buying power of the Toyota dealer network as a group, we’ve been able to create real value for our network with this product,” he said.

 “We wanted to challenge the status quo of dealership insurance and offer a better product, with the right amount of cover for the right price,” Rossell said.