DOWC Reinsurance

Q: What is a Dealer-Owned Warranty Company (DOWC)?

A Dealer-Owned Warranty Company (DOWC) is a domestically formed corporate entity that allows a dealership to issue and manage warranty contracts through its own corporation, participating directly in underwriting performance.

Q: How does DOWC differ from CFC reinsurance?

Unlike CFC reinsurance structures, a DOWC operates as a U.S.-based corporation and positions the dealer as the warranty obligor, resulting in greater domestic compliance responsibilities.

Q: Who is a good candidate for a DOWC structure?

A DOWC structure is generally appropriate for dealerships seeking domestic control and direct warranty participation and prepared to manage regulatory and capital requirements.

Q: Does a DOWC provide financial advantages?

A DOWC structure allows dealerships to retain underwriting profits and control investment income within their own entity, subject to regulatory and tax considerations evaluated with qualified advisors.

Serving independent and Franchise Dealers Across the U.S.

DOWC Structure

Dealer-Owned Warranty Company Model

ARC’s Dealer-Owned Warranty Company (DOWC) structure provides dealerships with the opportunity to participate directly in warranty and F&I profit through a domestically formed entity. Unlike offshore reinsurance models, a DOWC operates as a U.S.-based corporation, typically structured as a C-corporation, and positions the dealer as the warranty obligor.

Under a DOWC reinsurance model, the dealership assumes responsibility for warranty contracts issued through its own entity. This structure allows for direct participation in underwriting results and investment income while maintaining full operational control within a domestic regulatory framework.

Because the dealership acts as the obligor, the DOWC structure requires disciplined compliance oversight, financial reporting, and capital management. ARC works alongside dealership leadership to coordinate formation, administrative support, and regulatory alignment to ensure the structure operates effectively.

Explore the sections below to determine whether a Dealer-Owned Warranty Company structure aligns with your dealership’s operational capacity and long-term financial strategy. It could be that other ARC Reinsurance Programs suit your dealership better so contact ARC to determine the best fit.

ARC Warranties

Training & Consulting

ARC 20 Groups

Operational Framework

Domestic Warranty Governance Model

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Together, ARC’s Dealer-Owned Warranty Company (DOWC) structure provides a domestically controlled framework for direct warranty participation, underwriting oversight, and long-term financial alignment.

Common Questions

About DOWC Reinsurance

What is a Dealer-Owned Warranty Company (DOWC)?

- A Dealer-Owned Warranty Company (DOWC) is a domestically formed corporate entity that allows a dealership to issue and manage warranty contracts through its own corporation. In this structure, the dealership acts as the warranty obligor and participates directly in underwriting performance and related financial results.

How does DOWC differ from CFC reinsurance?

- Unlike a CFC reinsurance structure or a Super CFC Program, which typically involve offshore or separate reinsurance entities, a DOWC operates as a U.S.-based corporation and positions the dealer as the direct warranty obligor. This creates a more operationally involved structure with increased domestic compliance responsibilities.

Who is a good candidate for a DOWC structure?

- A DOWC is generally best suited for dealerships seeking domestic control and direct warranty participation, and who are prepared to manage the associated regulatory, reporting, and capital requirements. It is often appropriate for operators with stable F&I production and a disciplined operational framework.

Does a DOWC provide financial advantages?

- A Dealer-Owned Warranty Company structure allows dealerships to retain underwriting profits and maintain control over investment income within their own entity. However, regulatory, tax, and capital implications should be evaluated with qualified advisors to determine strategic suitability.