Description of Kingsway Financial Services Inc's Business Segments
Kingsway Financial Services Inc. operates primarily in two key segments: Insurance Underwriting Products and Insurance Services Products. Below is an extensive description of these segments, including the specific products and services offered within each.
Insurance Underwriting Products
The Insurance Underwriting segment is chiefly focused on the provision of automobile insurance, covering critical aspects of auto-related liabilities. The main categories of coverage include:
1. Liability Insurance: This type of insurance protects individuals who have been found legally liable for damages arising from automobile accidents. It covers: - Third-Party Bodily Injury: Liability arising from injuries sustained by other parties in an accident caused by the insured driver. - Property Damage: Covers costs associated with damage caused to another persons property as a result of an automobile accident.
2. Accident Benefits: Known also as Personal Injury Protection (PIP), this product provides coverage for policyholders who suffer injuries in an automobile accident, regardless of fault. It generally includes: - Loss of Income: Coverage for lost wages due to injury. - Medical Expenses: Payment of medical expenses resulting from the accident, regardless of who was at fault. - Rehabilitation Costs: Assistance with expenses related to physical rehabilitation therapies needed post-accident.
3. Physical Damage Coverage: This coverage protects the insured automobile itself from physical damage caused by various perils. It includes: - Collision Coverage: Protection against damages sustained in a collision with another vehicle or object. - Comprehensive Coverage: Protection against damages from non-collision events such as theft, fire, and vandalism.
Insurance Services Products
The Insurance Services segment primarily involves the marketing and administration of vehicle service agreements, which are crucial for consumers looking to protect their vehicle investments. The main offerings include:
1. Vehicle Service Agreements (VSAs): - These agreements provide a contract between Kingsway’s administrative services (IWS) and the vehicle owner, wherein IWS agrees to cover repair or replacement costs for specified vehicle parts due to mechanical breakdowns. - The agreements can range in duration from three months to seven years and may cover mileage limits ranging from 3,000 miles to 100,000 miles. - VSAs are designed to supplement manufacturer warranties while offering various extended coverage options that can be tailored to the vehicle and the consumers needs.
2. Guaranteed Asset Protection (GAP): - Kingsway also brokers GAP insurance, which is an essential product for car buyers. This insurance product provides coverage for the difference (or gap) between the amount owed on an auto loan or lease and the vehicles actual cash value in the event the vehicle is stolen or declared a total loss due to accident damage. - GAP does not involve taking on insurance risk; instead, Kingsway earns a commission on each GAP contract sold, making it a profitable ancillary service that offers significant value to consumers.
Conclusion
Through its Insurance Underwriting Products and Insurance Services Products segments, Kingsway Financial Services Inc. caters to a range of consumer needs in the automobile insurance and vehicle service agreement markets. Their offerings provide essential coverage and peace of mind for drivers and vehicle owners, ensuring protection against unforeseen financial burdens arising from accidents and vehicle-related issues.
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