Market research by consultancy firm Finaccord has found a global discrepancy in the sale of financial services and insurance by car dealers and manufacturer brands.
The research, covering 38 countries between 2010 and 2012, has found the average value of additional financial services exceeded 3% of the value of the car in only five nations: Canada (4%), Portugal (3.7%), France and the UK (both 3.6%) and Australia (3.5%), with an average across the 38 countries of just 1.4%.
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In contrast, Canadian dealers do not sell motor insurance and the UK, Australia and France only made between 0.8 – 1.4% of the car value through insurance premiums, compared to a global average of 3.3%
David Parry, managing consultant at Finaccord suggested this was because "motor insurance is generally sold by other channels and where the automotive trade has had more success in selling ancillary insurance, warranty and assistance policies.
"Car dealers are a primary distribution channel for motor insurance in Asian countries such as China and South Korea."
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