QBE Automotive Protection Harwoods case study

Creating an Extended Warranty product

Harwoods, which turns over more than £630m a year, had been with the same GAP and Warranty insurance provider for 14 years.

But with the Financial Conduct Authority’s decision to withdraw support for GAP insurance, the firm found that it had lost a key generator of customer loyalty – and a not-insignificant revenue stream – almost overnight.

A new approach was required. They turned to QBE Automotive Protection to create a new Extended Warranty programme for their customers.

“We needed coverage close to the manufacturer's warranty and a partner committed to our growth,” explains Clare Freemantle, Sales Director at Harwoods Group.

“We also needed a dedicated account manager to support both sales and aftersales with transparency, and a warranty product that could shift from being a cost centre to a profitable asset that will drive end customer loyalty.”

Building brand loyalty

Such is the size and the profile of Harwoods that many major insurers made pitches; but ultimately, Harwoods chose to end a 14-year relationship with the incumbent and place its customers’ financial security in the hands of QBE.

As Jamie Stidwell, National Sales and Development Manager at QBE Automotive Protection explains, “Harwoods were familiar with the brand, but less so with our proposition.

“But we were confident that once we explained our approach to business and how our products build brand loyalty, Harwoods would see the benefit of partnering with us.

“In fact, once a dealer partners with us, they're usually hooked for life. Our dealer retention rate is over 95% each year, which speaks volumes.

“I genuinely believe that we are the industry’s best-kept secret.”

An industry-leading claims process

Much of that retention is due to QBE’s claims service, which can process claims in under seven minutes.

That timeframe is the result of years of investment in technology. QBE Automotive Protection has created one of the leading underwriting and claims services in the sector – and Harwoods is already seeing the benefits.

“The support we've received from QBE has already exceeded our expectations,” says Clare.

But the claims service is more than just tech. “We want to pay the claims,” says Jamie. “That’s where we prove the value of our product.

“If there is any kind of ambiguity around a claim, we will always work with our partners to see how we can make the policy respond in some way or another. The attention to detail we give to every claim really sets us apart.”

Automotive expertise with everything in-house

It may come as no surprise that what really convinced Harwoods to partner with QBE Automotive Protection was the people.

“All of our operations are managed in-house,” explains Jamie.

“We are entirely in control of our own destiny. We don’t rely on third parties to provide any part of the service we deliver to clients, so whatever happens in a client’s world, we can respond quickly and effectively.”

Each member of the team has years of experience in the automotive sector, so when dealerships partner with QBE, it’s always a real meeting of minds.

“When dealerships sit down with us, they know they’re talking to someone who understands what it’s like to be in their shoes – because we really have been in their shoes,” he adds.

A partner dealers can rely on

All that expertise, experience and technical ability does not come for free, of course, but for Harwoods and an increasing number of dealerships across the country, the investment in quality, loyalty and protection programmes is worth every penny.

“QBE Automotive Protection was not the cheapest option, but it was the one we felt confident in, knowing they would deliver on their promises,” says Clare.

“I’m looking forward to a long and fruitful partnership.”