Swann quits Ford Credit

SWANN Insurance has terminated its relationship with Ford Credit Australia, severing a two-decade-long alliance and leaving Ford Credit to find a new insurance underwriter before Swann ends "transitional" support on June 30.

Swann Insurance’s head of dealer business Stuart Chapman told GoAuto this week that it decided not to participate in a tender process for the renewal of the Ford Credit business – which covers the Ford Solutions-branded Motor Comprehensive, Payment Protection Plan and GapCover products – because of the costs involved in continuing the service.

He added that Ford’s decision to move to tender indicated that it was seeking to strike an even tighter business arrangement.

"Swann is committed to investing its resources in mutually beneficial partnerships with a focus on growth and development for both parties," Mr Chapman said.

"These are the relationships that provide the most value to the parties involved and where Swann will be focusing its business in future." Mr Chapman said Swann would continue to provide agents within the Ford dealer network, who form part of Swann’s 1500 active agents nationally, access to its generic range products. He also said the decision not to pursue the tender would not impact existing policy-holders insured through Ford Credit.

"Swann will continue to provide administrative and claims support to existing policy-holders, who will not be impacted by new arrangements," he said.

A Ford Australia spokesperson confirmed to GoAuto that it had called for tenders and intended to have a new insurance partner for Ford Credit in place before the transitional arrangements with Swann ended.