Our clients - Auto insurers | Exponential Markets
Take back control
Financial solutions to manage vehicle price volatility
Accelerating change
Inflation, market volatility, and unprecedented uncertainty have collided to form a challenging time period for auto insurers. In an industry still recovering from pandemic-era market shocks, this development is particularly unwelcome.
Auto insurers face this challenge constrained by strict regulatory requirements and from a relatively inflexible business structure — making it difficult to respond effectively.
Evolving complexity
The increased price volatility of used vehicles will make it more and more difficult for auto insurers to accurately predict prices and model out replacement and repair costs. Without action, this escalating challenge could have unwelcome financial consequences.
This evolving complexity demands a new approach.
Back in the driver’s seat
With over 100 years of experience in the automotive and finance industries, we have a deep understanding of the risks and their implications. We’ve created a solution that not only helps manage risk in this volatile landscape, but brings new opportunities.
Our products offer stability in this new world of uncertainty. We offer you a solution where used vehicle price volatility does not have to translate to business instability.
Exponential Markets Used Vehicle Derivatives allow companies to lock-in wholesale vehicle prices and transfer the risk to financial market participants. We enable large automotive fleets to hedge residual value risk.
Protection
Against emerging risk and market shocks
Transparency
Transparent and efficient pricing of risks
Efficiency
Cap physical damage losses and smooth out physical damage loss ratio
Opportunity
Finding potential yield amid market volatility
Why derivatives?
Derivatives have been used for decades in industries as diverse as energy, finance, agriculture, and manufacturing. And used vehicle derivatives are already being used to successfully manage interest rate risks and currency exposure.
Used vehicle price volatility is also a critical risk - and opportunity.
Interested in learning more about derivatives?
How it works
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Get in touch
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We collaborate with you to optimize your risk management goals
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Balance your organization's risk management appetite with your company's asset exposure