Affinity insurance transforms the service experience and growth for an auto dealer

The challenge

A leading luxury automotive dealer sought to enhance its service experience and diversify revenue streams through a digital affinity insurance solution. The dealer required a partner who could deliver a comprehensive affinity insurance program based on extended warranty products for high-net-worth consumers as well as digital capabilities to streamline operations across their showrooms and outlets.

The solution

After a competitive tender process, the Marsh Affinity team partnered with the dealer to design and implement an extended warranty program powered by Bluestream, Marsh's proprietary digital insurance platform. The solution centered on several key requirements:

Custom product design: Marsh leveraged its extensive knowledge of both local and international auto extended warranty markets to develop a competitive product coverage and rates tailored specifically to meet the needs of high-net-worth customers.
Seamless digital capabilities: In 2024, Marsh deployed Bluestream, providing dealers and service advisors with a modern, user-friendly digital insurance platform that seamlessly integrated into their existing technology and service ecosystem. The platform delivers:
- Digital point-of-sale capabilities for extended warranty products
- Automated claims management for vehicle repairs and replacements
- Real-time analytics for monitoring performance metrics and claims data
- Campaign management tools for targeted marketing initiatives
Consistent customer experience: The platform was purpose-built and branded for the dealer, ensuring a consistent customer experience across all touchpoints while maintaining their premium brand identity.

The results

The implementation of the extended warranty program through Marsh’s Bluestream platform delivered significant benefits:

Projected increase in extended warranty sales: Using Marsh’s Bluestream campaign functionalities, the dealer is projected to increase extended warranty sales from 30% to 45%. Through the analytics capabilities, the dealer can identify the most successful extended warranty products for specific vehicle models and series.
Simplified claims process: The service advisors at the dealer submit and manage claims for vehicle and parts repair or replacement directly through Marsh’s Bluestream reducing the administrative burden. Additionally, the insurer reviews the claims information in real-time via the platform accelerating the resolution time.
Expanded product offerings: By leveraging the performance data, the dealer successfully expanded their product range to include used cars and options with longer coverage periods.
Improved customer satisfaction: The streamlined claims processes and faster resolution times enhanced the overall customer experience.
Data-driven decision making: Valuable insights into program performance, claims monitoring, and loss ratios led the dealer to identify new trends and develop targeted marketing campaigns.

Key products and services

The Marsh Affinity team provided the dealer with:

Extended warranty products: Comprehensive coverage options for both new and used vehicles
A digital insurance platform via Marsh’s Bluestream, comprising:
- Digital sales and a policy management system
- Automated claims processing and tracking
- Advanced analytics and reporting capabilities
- Integrated campaign management tools
Strategic consulting: Ongoing analysis and enhancement of program performance to support negotiations with insurers during renewals.

Conclusion

By implementing an affinity insurance program on Marsh’s Bluestream platform, the dealer has positioned itself for significant growth in extended warranty sales while improving operational efficiency and customer satisfaction.

The data-driven insights enable ongoing enhancements of product offerings and marketing strategies, creating a foundation for sustained growth. The success of this implementation demonstrates how Marsh's digital insurance capabilities can transform traditional warranty programs into a modern, efficient, and revenue-generating business.