Just a couple more weeks and the Industry’s largest F&I conference will be underway. The Vehicle Service Contract Administrator Conference (VSCAC), one of three conferences composing the Industry Summit being held September 26 through 28, has come a long way from its debut back in 2004.

Review of 2010

The 2010 conference covered many workshops and panel sessions examining topics relevant to the dismal economy, technological changes in the industry, compliance issues, and even opened the door to addressing F&I product categories outside of vehicle service contracts.

The Hot Buttons for the year included the following:

The Danger Inside the Data – discussing how the prior two years had impacted the data that companies depend upon to set their business strategies. Further discussion reflected upon whether, and if so how much, does historical data really predict the future.

The New World of F&I – which provided an overview of the F&I industry and the role of technology and internet has on opportunities available. The impact of demographic shifts and new legislation was also discussed.

Dealership Reinsurance – the challenges and opportunities regarding reinsurance were discussed as well as ideas for providers on how reinsurance could be made an integral part of their product offerings.

Panel discussions covered Web Services including e-Quoting, rating and contract generation and the impact the economy had on business, and Workshops focused on “The Importance of a ‘Bag’ of Products,” and compliance issues.

Focus for 2011

So, where has the focus changed to over the course of a year? Has it changed, and if so how much?

VSCAC this year still covers the same important categories as in prior years, but as the world and economy is ever-changing, so do the technology, laws, business strategies, and product offerings that this industry operates within.

Technology

Technology is a huge topic as it is an integral part of almost every segment of a business’ operations – providers and administrators not withstanding. A large portion of the conference focuses on technological changes, not only in the market place, but also within the industry. So, how these changes have affected our product offerings, how we do business, and the changes that we have made to remain competitive, accurate, reliable and efficient are a huge result of technological changes and processes.

Technology-based workshops and panel sessions include:

• Two panel sessions covering the 4-part series based on “connecting providers, administrators, and dealers” that P&A Magazine has been covering over the past few months. The first panel session, moderated by Adam Kimber with Agent Entrepreneur and P&A Magazines, will be held the first day of the conference, Tuesday, from 10:00 – 11:15. The second panel session, moderated by David Trinder with F&I Administration Solutions, will be held the second day of the conference, Wednesday, from 11:30 – 12:30.
• An afternoon keynote address from 2:00 – 3:00 on Tuesday given by Jim Pratt with Wright Express, covering issues regarding making VSC claims payments faster, cheaper, and more efficient with electronic payments.
• A Wednesday morning panel session from 10:05 – 11:15 moderated by David Trinder titled “Agents Sound Off on What They Need.”

Compliance

Trying to keep abreast of most current laws, what is and is not permitted and conducting business within the “not-so-black-and-white” areas of compliance issues can be very tricky. Event planners and coordinators have made sure that attendees of this conference have not left without having ample opportunity to catch up with what is going on in the industry and what to keep in mind while going about your everyday business schedule.

Panel sessions and presentations that delve into this area of interest include:

• Monday evening’s Welcome and evening keynote address given by Damon Wiener with Safe-Guard Products International about doing business the right way (without breaking the bank). This legal-fee free session precedes the conference’s Welcome reception held at 6:15 – 7:45 that evening.
• A Wednesday morning panel session from 9:00 – 10:00 presented by Michael Benoit with Hudson Cook LLP titled “Compliance Watch: The Industry’s Newest Threats.”
• An afternoon panel session from 3:05 – 4:00 on Wednesday moderated by Lewis Kuhl with Pathman Lewis LLP will cover Emerging Claims Issues with VSCs.

The Economy, Business Strategies and Product Discussions

For the past few years it’s been hard for many to escape the effects the economy has had on businesses. Although many of the Technology and Compliance panel sessions and workshops will include ideas and information relating to general business processes, several workshops and a Keynote Address have been included on the agenda that are more focused on these topics. Included in the agenda are the following:

• An opening keynote address held on Tuesday from 9:00 – 10:00 presented by Mike Frosch with The Warranty Group discussing Strategies for a Rebounding Market.
• A workshop on Tuesday afternoon from 11:30 – 12:30 presented by Gary Fagg with CreditRe on Limit the Inherent Risk of Too-Good-to-be-True Products.
• A second workshop on Tuesday afternoon from 3:05 – 4:05 on Keeping Tire and Wheel Viable – trends that are impacting current and future programs.
• A workshop on Tuesday from 4:30 – 5:30 presented by John Kerper with Kerper-Bowron will examine Month-to-Month Renewal Service Contracts and provide key insights on how to manage this reemerging product segment.
• On Wednesday from 2:00 – 3:00 a workshop co-presented by Lee Bowron with Kerper-Bowron, and Guy Koenig with AmTrust will cover Carrier/Administrator Relations Best Practices and elaborates on what practices need to be implemented to ensure the goals held by both parties are achieved.

The full VSCAC agenda can be viewed at http://www.vscac.com/Program/Conference-Program/”

If you are a provider or administrator, this conference is THE place to be from September 26 through September 28. Not only does VSCAC offer great insight and best practices for professionals in the industry, there are also several Networking Breaks scheduled throughout each day and a reception following the day’s events that will be open to all attendees and participants from all three conferences included in the Industry Summit. What better way to break-up or end your day by catching up on the latest conference events, networking, socializing, and putting names to faces that we conduct day-to-day business with from all areas of the country.

It’s hard to believe another year has passed and the 2011 VSCAC is less than a month away! A few months back, I was invited to be the emcee, and I am looking forward to another great show. For those who have never attended, I would strongly urge you to make it a priority. It is an invaluable opportunity to network, hear from the experts about technological innovations and learn about how you can be more efficient as a businessperson.

A lot of time and energy has gone into putting together what will be a stellar agenda. At P&A Magazine, we have been covering many of the topics that will be discussed. In particular, I am looking forward to moderating a panel that centers on the four-part series we have been running in P&A Magazine on Connectivity (connecting providers, administrators and dealers).

At NADA earlier this year, I asked people to propose various topics they thought would be of interest for us to cover. While there were a number of good suggestions, there was one common question everyone had: How is everything connected today? In other words, which companies connect where? What new technologies are out, or coming soon, that will make everything seamless? How are the administrators communicating with the inspectors? How do dealers communicate with the administrators? Is there something in the works right now that will somehow connect all of this together?

Needless to say, it has been tough for us at P&A Magazine to ascertain precisely what all the companies in the industry are able to do, versus what they are trying to do. At the VSCAC there are two panels dedicated directly to these questions. Each member of the panel will be able to speak about what they are doing, and those in the audience will be able to ask questions. It will be a great opportunity to get a grasp on where the industry is headed. The first panel will be held on Tuesday from 10:00 to 11:15 a.m. and will feature the following people:

Moderator:

Adam Kimber, Agent Entrepreneur and P&A magazines

Panelists:

Brent Allen, StoneEagle.com; L’Tonya Carr, Carr Appraisals, Inc.; Kumar Kathinokkula, F&I Administration Solutions; George Laurie, LKQ Corp.

The second panel will occur on Wednesday from 11:30 a.m. to 12:30 p.m. and will involve the following people:

Moderator:

David Trinder, F&I Administration Solutions LLC

Panelists:

Patrick DeMarco, Ristken Software Services; Jim Maxim, MaximTrak Technologies; Brian Reed, Intersection Technologies Inc.; Mark Virag, Provider Exchange Network (PEN)

In addition to these panels there are a number of other keynote speakers, workshops and panels that will be of great value. We are pleased to have Damon Weiner, Esq., Safe-Guard Products International, LLC deliver our evening Keynote Address. Many times legal fees can be overwhelming, but what most people do not realize is that there are ways to ensure your company is in compliance without breaking the bank in the process. Damon will explain how this is possible.

We are also pleased to have Mike Frosch of the Warranty Group as our Opening Keynote Address, who will speak to Strategies for a Rebounding Market. Times have been tough during the last few years, but it appears as if we are slowly on the comeback. Mike has many years of experience and will speak to the issues we need to be aware of moving forward.

Jim Pratt of Wright Express will address emerging trends in electronic payments and implications for vehicle service contract administrators, how electronic payments are redefining claims processing and how it can improve efficiencies and results and best practices from case studies of multiple live implementations.

A new panel for VSCAC will also occur entitled, “Agents Sound Off on What They Need.” From technology to product programs, nothing will be off the table when representatives from some of the top agencies in the business converge for this very special panel discussion. Get a frontline perspective on what F&I products dealers need, which plans are working and how to successfully propel eBusiness adoption among dealers.

Gary Fagg of CreditRe will talk about why products like return-of-premium-VSC, lifetime powertrain warranty and other “too good to be true” lifetime promises have a high failure rate. Dealers, agents and administrators need to be able to manage the risk associated with such offerings.

We are also glad to have John Kerper of Kerper Bowron, back to discuss month-to-month programs that offer several key benefits, from allowing dealers to reconnect with past customers whose warranty is about to expire to being easily added on as a separate plan when there isn’t room in a loan for a standard service contract. Hear from one of the leading experts in this product category as he offers key insights on how to manage this reemerging product segment.

There are many other topics that will be discussed as well – making VSC contract claims payments more efficient, keeping tire and wheel viable, examining month-to-month renewal service contracts, emerging claim issues with VSC’s and others that can be seen in greater detail at www.vscac.com.

I am looking forward to the show and hope that you are too. This truly will be an incredible opportunity to network and learn more about what is going on in our industry. Safe travels, and see you in Vegas!

We are pleased to announce that the 7th Annual Vehicle Service Contract Administrators Conference will be held at the Hilton Hotel in Las Vegas on September 26-28, 2011. Please mark this on your calendar now and plan to attend so you can benefit from networking and learning from others in the industry.

One of my favorite teachers in school made this comment before I graduated: “You never stop learning. The day you think you’ve learned everything you need to know is the day you stop growing.” Now, as a Kindergartner I did not fully understand this, but I knew I needed to keep learning!

All kidding aside, in my opinion one of the biggest obstacles most people need to overcome is getting out of the rut of doing business the same way they’ve always done it. So many, day in and day out, use the same methods without giving any thought or consideration to new ways that might be more effective. Do you see how this can limit potential growth?

People who understand that ongoing education and learning are essential will find themselves prospering as their businesses grow. Professionals who constantly dedicate themselves to brainstorming ideas and gathering knowledge from those who are even more successful tend to become leaders in their industry.

This is where VSCAC comes in. This is one event you cannot miss!

Our industry is constantly evolving; legal issues are always changing, new technologies are being developed that will streamline the way we do business and product offerings are expanding. Are you completely up-to-speed on all of these? VSCAC is the perfect opportunity for you to gain the tools necessary to be successful in the future.

Attendees at the last VSCAC filled out a post-show survey and shared what they felt was most beneficial about the event. These were the top three responses:

1. Networking with other industry professionals.
2. Seeing the newest products and services available.
3. Learning valuable information that can be put to use immediately.

We greatly appreciate those who gave us this feedback, and we are glad VSCAC provides you an opportunity to become more successful in the future. However, we want to constantly improve and learn from you so we can provide the most beneficial experience possible. All of the sessions were well received, but these three in particular were highly praised:

1. Dealership Reinsurance
2. Web Services
3. A Customer’s Perspective for Service Directors

What other topics would be of interest? If you could put the agenda together yourself, what subjects do you feel would make for a stellar agenda? Please email me your input or leave your comments below.

Last, there is a change we have made to VSCAC 2011 that was based on the feedback we received from all of you. In years past the VSCAC has had separate networking receptions (apart from the F&I Conference), and we know this has been a frustration to some of you. This year, VSCAC will maintain its own educational track just like in years past, but it will share the networking reception with the F&I Conference. We believe this is a very welcome change.

In the end, we are grateful to all of you who support VSCAC. We listen to your input and value your perspective. Our goal is to make the show a unique opportunity that provides an essential benefit to you as a professional. With your involvement, we can make this happen. We look forward to seeing you in September!

It has been a couple of months since we were given the opportunity to hear from some of our service department clients who presented a brief but pointed “report card” on how we are doing as an industry and what we could do better (from their viewpoint). I am referring to the panel discussion at the Vehicle Service Contract Administrator’s Conference (VSCAC) in Las Vegas titled “A Customer’s Perspective – From Service Directors.” Has anyone brought new insights back to their administration as a result of the feedback?

For the past five years we have been gathering at the F&I/VSCAC Conference and Expo for a variety of reasons including, but not limited to, networking opportunities, launching new products and partaking in workshops and presentations by industry experts in an effort to gather new ideas to take our businesses to the next level. We have talked to other industry professionals, allied industry experts, a variety of technology vendors, parts providers and inspection agencies.

And yet, while we continue to do a lot to grow and improve our products and services, it seems that we don’t really ever ask our dealership clients how our service and performance rank from the perspective of the service department. Even while acknowledging that an unhappy service department can get us tossed out of a dealership at warp speed, we somehow tend to ignore this very important partner.

During the planning of this year’s conference, the VSCAC Advisory Board (comprised of the principals and high-level executives from several prominent TPAs, underwriters and technology providers) proposed the idea of inviting a panel of service directors to the conference to ask them the following: How are we doing? What can we do better? How can we add value for you and our product offerings?

I was thrilled when David Gesualdo and the folks at Bobit Business Media involved in developing the conference contacted me to ask if I would be interested in recruiting and moderating a panel of this nature. The concept suited me as I have been a longstanding advocate of developing cooperative, all-inclusive relationships versus those that exclude any of the key members of the business organization.

However, we wondered if this would be the right environment for this type of discussion and whether any of the conference attendees would be interested in listening to service department folks possibly “complain” about how we treat them? We talked about how the VSCAC had always been limited to those in or directly affiliated with the business of selling and/or administering vehicle service contracts and other related products. Now we were contemplating opening the conference up to our dealer clients. Could we be running the risk of divulging some of our “secrets” concerning industry claims adjudication methods, or worse – would we be creating a potentially hostile environment?!

Furthermore, would we be able to find anyone from a dealership service department that would be interested in taking the time from their busy schedule to participate in such a panel? We pressed forward thinking that more positive than negative results could come from this fresh concept. Heck, we might even learn something new!!
Through combined efforts we were able to find four willing participants to come and talk with us: Bill Buckley, Roger Camperi, Paul Knotts and Scott Ramer.

We polled the Advisory Board and came up with a number of topics of interest:

• Online/electronic claims submission
• Service drive sales and menus
• Training and technology
• Independent inspections
• Claim reimbursement levels

Although the panel session was scheduled for 45 minutes, there was so much interest that we ran long (thanks to David Trinder and F&I Solutions for sharing their sponsored break time). A number of attendees indicated that we could have spent even more time delving deeper into some of the more salient subjects. As a matter of fact, after the hour-plus session concluded, five or six attendees “rushed the stage” to engage the panelists and ask further questions.

An overview of our panelists’ viewpoints relating to some of the more notable topics is listed below:

Online/Electronic Claims Submission

It was widely accepted that online claim submission would be the best overall solution compared to some of the traditional faxing or phone methods used today. However, while the dealership representatives agreed that they were able and willing to proceed with this method of claim reporting, no administrators that they do business with are currently offering this technology. The primary advantages from the dealership’s point of view were:

1. More accurate and confirmed claim submission; when claims are faxed the repair facility is never really sure the fax was received and if the fax was legible.
2. Faster and more accurate tracking of the claim status and/or payment status; the time savings for both parties would be tremendous if the dealership could go online and view the status of the claim.

Service Drive Sales and Menus

The timing couldn’t be better for offering service contracts and other products from the service drive considering people are keeping their vehicles longer (9.4 years average age for cars and 7.2 years for SUVs according to Ramer) and they are looking for ways to minimize their risk by purchasing extended coverage. Ramer said his dealership has recently placed a dedicated sales representative on the service drive to act as a greeter and to lead the customer into conversations about these types of products. They also have notices and reminders posted that these products are available.

The other panelists whose dealerships offer service contracts on the service drive revealed what most of us already know: the absence of consistent sales/marketing and compensation plans usually causes this venture to falter or fail completely. Additionally, the lack of effective training and technology creates issues when trying to establish an on-going endeavor in this arena.

The panel indicated that the most important thing to remember when implementing any service drive program is to make sure that all parties in the dealership involved in the process are informed from the very beginning as to what the arrangements and agreements are and buy in to the concept. It is especially important that information relating to procedures, responsibilities and commission arrangements is communicated to the proper parties.

Training and Technology

There was universal consensus that the service department is most often forgotten when it comes to training, especially in the area of service drive sales of service contracts. While their agent may come to visit on occasion or work with them when claim issues arise, there isn’t much attention in the way of training or ongoing support. It would be a welcomed change if the agent and/or administrator offered the service department personnel some additional guidance.

Independent Inspections – Dealer Self-Inspections

While the current inspection system works relatively well, the processes could be greatly enhanced according to Knotts. Under current procedures, the downtime varies dramatically depending on the circumstances but it is always a significant disruption.

While most inspectors possess satisfactory mechanical knowledge, issues can arise when they are questioning a technician that is fully trained on specific vehicle makes and performs repairs on them on a daily basis. In some cases, claims are denied due to deficient inspections. The possibility of an inadequate decision is greatly increased if the inspector arrives when the technician is not present and the inspector makes a decision without any communication with the technician regarding diagnosis or teardown.

The issue of inspectors’ attitudes was also mentioned. Camperi said he has had some of the best and some of the worst experiences with inspectors. The biggest hurdle is trying to find someone to contact about inappropriate attitudes and behavior.

The introduction of a dealer self-inspection process would be beneficial as it would certainly help to decrease service bay downtime and the length of time the customer’s vehicle is in the shop. As new car/truck dealerships, this is they are already accustomed to performing factory warranty repairs in this way. However, comments from an administrator attendee indicated that a self-inspection program would not be desirable as it could be like the “fox watching the henhouse” and an independent assessment would be necessary to satisfy their underwriter’s requirements. Certainly more discussion on this subject is warranted.

Claim Reimbursement Levels

Reimbursement amounts for parts, labor and sublet items are acceptable and dealerships are generally satisfied with the various pricing arrangements, according to Buckley. The main issue in this area occurs when administrators insist on the dealership using aftermarket parts. Most dealerships understand the need to save money and they would be willing to discount their OEM parts down to factory warranty pricing but they shouldn’t be forced to install non-OEM parts they can’t warranty. However, if this pricing structure is going to be required, it should be set up in advance so the dealership doesn’t have to call in for every claim and negotiate with the administrator.

The dealers have a valid point; however, I am not recommending that we discontinue claim cost savings initiatives such as the reduction of parts and labor reimbursement levels when dealing with loss control issues. I am proposing that when remedial action or loss control plans are implemented, it is done only after the appropriate due diligence is performed to determine all the factors involved in causing the unacceptable loss experience. It is also important to communicate the plan of action to the service department management and let them know that they can and will go back to normal reimbursement levels when the losses come into line. This communication will make them true partners in your efforts and will remove some of the adversarial attributes of implementing these cost reduction initiatives.

In closing, I wonder if anyone has modified their approach or any of their procedures or philosophies as a result of the feedback from these service professionals. Did any of it make an impression? Are you planning to amend any processes relating to communication with your service department client partners?

Should we conduct a similar panel during the 2011 VSCAC to expand on some of the topics discussed this year? Should we add other topics? I welcome your thoughts and your feedback will be forwarded to the VSCAC advisory board, which will allow us to remain involved in creating the agenda for our next conference.

Touting an expanded agenda and a host of educational sessions touching on the industry’s hot-button issues, the Vehicle Service Contract Administrators Conference (VSCAC) is coming to Paris Las Vegas Hotel & Casino next week, Sept. 14-15. 

For the first time in its seven-year history, the conference will explore product categories outside of vehicle service contracts, providing attendees with insights into the industry’s newest vehicle protection products and services. Here’s a look at some of the other hot-button issues on this year’s agenda:

• The Danger Inside the Data: In this session, Tony Wanderon, president of Allstate Dealer Services, will look at how the last two years have impacted the data companies rely on to set their business strategies, and will answer and detail whether historical data can really predict the future..
• The New World of F&I: Today’s Realities and Tomorrow’s Promise: Forrest Heathcott, president of JM&A Group, will provide administrators with an overview of the F&I industry. He will talk about the role of technology and the opportunities available in today’s online marketplace. He also will how demographics shifts among buyers and new legislation could impact the industry.
• Dealership Reinsurance: Scott Allen, president and CEO of Oceanic International, will delve into the world of insurance litigation. He also will address the challenges and opportunities that lie in reinsurance, and will offer his take on how providers can make reinsurance an integral part of their offerings.
• A Customer’s Perspective from Service Directors: Administrators will hear from a select group of service directors and F&I managers on what they expect from providers. These dealer representatives also will provide feedback on what providers do well and where improvements are needed.

Also featured on this year’s agenda are two panel discussions on Web services and the economy’s impact on business. Attendees will hear from panelists about their experiences with Web services for real-time quoting, rating and contract generation, as well as gain insights from a team of experts on the economic downturn’s impact on cancellations and regulatory issues.

Workshops filling out this year’s agenda include: “The Importance of a ‘Bag’ of Products and What Constitutes a Full Bag?” “Controlling the Bad Guys: How to Deal with Players that Abuse the System,” and a limited warranties workshop that will focus on how companies are navigating the host of regulations governing that segment of the industry.

Attendees will also have access to an exhibit hall filled with F&I-related products and services. For more information or to register, visit www.VSCAC.com or call (800) 576-8788.

The collapse of US Fidelis will take center stage at this year’s Vehicle Service Contract Administrators Conference, as attendees will hear the untold story about the company that symbolized the direct-to-consumer movement for F&I product sales.

Occurring on day one of the conference – scheduled for Sept. 14-15 at the Paris Las Vegas hotel and casino, “The Inside Story on US Fidelis” will dive into the inner workings of a company that once claimed to be the largest marketer of service contracts before it filed for bankruptcy in March with the US Bankruptcy Court for St Louis.

Terry M. Keating, managing director of Amherst Partners, was part of the team selected by the US Bankruptcy Court to lead US Fidelis through bankruptcy proceedings. He will take attendees through an hour-long presentation that detail how the company became the subject of more than 33,000 inquiries and more than 1,100 complaints received by the Better Business Bureau.

Keating also will discuss the company’s operational and financial issues, and will lend his insight on what the company’s debacle could mean for the F&I industry.

In its seventh year, the conference, which will run concurrently with the F&I Conference and Expo, has been revamped to include topics addressing F&I product categories outside of vehicle service contracts. And as in years past, event organizers have gathered the industry’s leading experts to lead attendees through a host of educational sessions on topics such as: managing business strategies; improving internal operations; increasing product offerings; key issues impacting the vehicle service contract industry; and the changing regulatory environment.

Rounding out this year’s roster of keynote speakers are Tony Wanderon, president of Allstate Dealer Services, Forrest Heathcott, president of JM&A Group, and Oceanic International’s president & CEO, Scott Allen.

Wanderon will present “The Danger Inside the Data,” a session that will answer and detail whether historical data can really predict the future. Heathcott will then dive into “The New World of F&I: Today’s Realities and Tomorrow’s Promise,” an address that will provide administrators with an overview of the F&I industry, the role of technology and the opportunities that lie in today’s online marketplace. He also will talk about the demographics shift among today’s car buyer, and will detail how recent legislation could impact the industry.

Allen, a legal expert in insurance litigation, also will deliver an address centering on the challenges and opportunities that lie in reinsurance. His focus will be on how providers can make reinsurance an integral part of their offerings.

Administrators in attendance will also hear from service directors and F&I managers on what they expect from providers. These dealer representatives also will provide feedback on what providers do well and where improvements are needed.

This year’s agenda also touts two panel discussions on Web services and the economy’s impact on business. Attendees will hear from panelists about their experiences with Web services for real-time quoting, rating and contract generation, as well as gain insights on the economic downturn’s impact on cancellations and regulatory issues.

Workshops filling out this year’s agenda include: “The Importance of a ‘Bag’ of Products and What Constitutes a Full Bag?” “Controlling the Bad Guys: How to Deal with Players that Abuse the System,” and a limited warranties workshop that will focus on how companies are navigating the host of regulations governing that segment of the industry.

Those who register for the conference before Aug. 27 will save $100 on a full conference pass. Conference organizers are also offering a reduced room rate for those who book their room at the Paris Las Vegas hotel and casino before Sept. 3. A hotel block raffle will also be held for those who book their rooms before the early bird deadline.

For more information or to register, visit www.VSCAC.com or call (800) 576-8788.