Tricolor tapped a new leader to oversee the insurance offering the company announced last month.
Tricolor, one of the nation’s largest used-vehicle retailers focusing on the sale and financing of vehicles to Hispanic consumers, on Monday named Archie Gall as chief executive officer of its affiliate company, Tricolor Insurance. The provider of affordable insurance for subprime vehicle owners will begin rolling out its new insurance offering throughout all of its markets in Texas and California.
“I am thrilled to welcome Archie to the Tricolor team,” Tricolor chief executive officer Daniel Chu said in a news release. “He shares our vision to make car buying and ownership a trusted and affordable experience for everyone.
“His experience creating and expanding insurance solutions for consumers will be vital to our commitment to transform the nonstandard auto insurance industry on behalf of underserved customers,” Chu continued.
With 30 years of experience in the insurance industry, the company highlighted Gall brings an impressive track record of launching, growing and operating successful insurance agencies in Texas. Between 2005 and 2014, Gall grew his Austin-based operation to more than 20 locations before it was acquired by Confie Seguros, a national non-standard auto insurance company operating more than 800 locations in 22 states serving the Hispanic market.
“I’m eager to become the best value provider in the market, providing transparency and eliminating unnecessary fees for deserving car owners,” Gall said. “We can build on Tricolor’s impressive brand and reputation, leveraging their innovative lead generation strategies, technology stack, and back-office capacity to quickly scale this initiative and create a meaningful component for the company’s broader financial services platform.”
Tricolo estimated the nonstandard auto insurance industry comprises approximately 30% of the $140 billion personal auto insurance market. Agencies serving this customer segment often offset perceived cancellation risk by charging high origination fees.
Tricolor said it can eliminate agency fees — including point of sale, endorsement and cancellation fees — by using risk insights gained from its data-driven underwriting models.
Tricolor Insurance Agency, an affiliate of Tricolor Auto Group, currently serves as an agent for 10 nonstandard carriers and markets its services throughout Tricolor’s 28 dealerships and through its eight Ganas dealerships in southern California.
Currently available only to Tricolor auto purchase customers, the company plans to extend its insurance offering to all vehicle owners later next year.
On a combined basis, Tricolor and Ganas have served nearly 50,000 customers and originated nearly $1 billion in contracts by using its proprietary model to segment risk.