How the Expanding Automotive Aftermarket Creates Growth Opportunities for Producers

A Case Study in Smart Growth: How Arrowhead Scaled the Automotive Aftermarket Program

The automotive aftermarket has continued to grow rapidly in recent years, fueled by vehicle aging trends, supply chain shifts, and consumers holding onto their cars longer than ever. For producers, this means a surge in demand for reliable, tailored coverage — and an opportunity to expand their book by tapping into this high-potential segment.

Arrowhead has positioned itself at the center of this growth by taking a unique approach: partnering with carriers to “lift out” legacy programs that are operationally underperforming, yet full of opportunity.

How the Lift-Out Worked — and Why It Still Works

Back in 2012, Zurich asked Arrowhead to take over management of its Automotive Aftermarket program — a book of business originally developed by Universal Underwriters, then acquired by Zurich. Though the policies were profitable, the program’s operational costs were high due to outdated processes and resource constraints.

That’s where Arrowhead stepped in.

We assumed control of key operational functions including:

• Distribution

• Premium accounting

• Customer service

• Underwriting

• Marketing

Zurich team members moved into Arrowhead roles, and we transitioned the servicing model into our Centers of Excellence, modernizing everything from billing to claims workflows. The result: lower expenses, better service, and scalable growth.

Why Carriers Benefit from Arrowhead’s Program Management Model

Too often, carrier’s sunset profitable books simply because the cost of servicing outweighs the capacity or efficiency of internal systems. But there’s a better way:

“We can ‘lift out’ the expensive, resource-heavy portion of a book and turn it into a profitable, growing program,” explains Lisa Stahl, COO of Arrowhead’s Commercial Division. “The carrier keeps the capital and paper; we bring the scale, automation, and service.”

That’s the model we used to transform the Automotive Aftermarket book — and it’s still working today, now more than a decade later.

Program Enhancements That Help Producers Grow

Over the last several years, we’ve made significant upgrades to improve both the agent and customer experience. These enhancements directly help producers grow their book in the aftermarket space:

Opened to the Independent Agency Channel

Access for producers has expanded, creating new revenue opportunities nationwide.

Aftermarket Express

Our Express Package allows agents to quote and bind eligible accounts instantly online via Arrowhead Exchange — no delays, no paperwork headaches.

24/7 Self-Service Tools

Both producers and policyholders can manage payments, download forms, and update details at any time.

Integrated Claims Handling

Claims are now processed through American Claims Management, our in-house subsidiary, including oversight by an ASE-certified mechanic for specialty cases.

Value-Added Services

• SP-2 Automotive Training: A tool for customers to recruit and train automotive service professionals.

• 1moresecond: A free online driver safety course for insureds — helping reduce claims frequency.

Why This Matters Now

The automotive aftermarket is more dynamic than ever in 2025, with increasing demand for reliable coverage in:

• Repair shops

• Parts retailers

• Detailers

• Body shops

• Mobile services

At Arrowhead, we’ve modernized a legacy program into a high-performance opportunity for both our carrier partner and our producers. With the right tools, access, and innovation, we’re making it easier for agents to grow — and giving customers a streamlined, tech-forward experience.

Want to learn more about our Automotive Aftermarket program?
Explore the program here

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This blog was originally published here and has since been updated and repurposed for relevance.