Sustainable Success
Vince Santivasi
Head of Direct Markets,
Zurich North America
How Zurich North America is helping drive a greener tomorrow
As the adoption of electric mobility grows worldwide, the largest automotive markets are predicted to be fully electric by 2035. This shift represents the high-tech future of transportation, initiating a necessary step in lowering carbon emissions produced by gas-powered vehicles. As a result, the auto industry is looking for ways to meet the evolving needs of its electric vehicle (EV) customers.
How did Zurich first start working with the auto industry?
January 1, 2022, officially marked the 100th anniversary of Zurich Direct Markets (DM). Our business started as Universal Underwriters Group (UUG) in Kansas City, providing 85 Ford dealers with fire insurance. Since then, Zurich has become one of the most extensive finance and insurance (F&I), as well as property and casualty (P&C), providers to U.S. franchised auto dealers. To put that in perspective, we have been serving car dealers since just after the Model T was built, and now, we’ve seen the first electric vehicle roll off the assembly line. We’ve helped dealers through the Great Depression, World War II, and now, the global COVID-19 pandemic.
What does this 100th anniversary milestone mean to the company?
This milestone means a great deal to us because it represents our commitment to customers. From our early days, and the 100 years that followed, we have worked alongside our customers, listened to their unique perspectives and ideas, and used their insights to innovate, problem-solve, and ultimately, develop solutions to help their businesses thrive. We’ve been there for our customers, providing protection for their properties and businesses from a liability perspective. Still, this milestone also reminds us of our evolution in the F&I side of the business—providing protection solutions for car buyers.
Vehicle protection products help car buyers maintain and repair their vehicles, preserve their appearances, and address specific risks—from theft to environmental damage. These products can help handle the unforeseen costs of vehicle ownership that the traditional protections of manufacturers’ warranties and auto insurances often aren’t enough to cover. From an F&I perspective, we have grown exponentially, and as we’ve grown, we’ve become a leader
in the industry—an achievement of which we are most proud.
The global insurer is paving the way for a more sustainable and reliable future for electric vehicle dealers and drivers.
BACK TO HOME
BACK TO HOME
How does this growth benefit your customers in the auto industry?
We’ve evolved from simply being an insurer that helps protect business losses to becoming a thought leader and advocate for our customers. Our customers are at the center of everything we do. Our customer council, for example, is one of our most valued channels for consumer insight and learning. For more than 25 years, Zurich has convened this council, made up of 12 to 15 auto dealer leaders from around the U.S, to serve as a think tank, contemplating an industry facing continuous and rapid change. The group exchanges ideas that help dealers solve problems, think differently about aspects of their businesses, and transform their operations. What we learn during our time with the council helps us clearly understand the industry’s concerns and challenges and leads us to solutions that best serve our customers. This experience represents a depth of knowledge and expertise that makes us a trusted partner for dealers, one that can provide the guidance and solutions dealers can rely on to help them prepare for, and make the most of, the challenges and opportunities that lie ahead.
One of those challenges is climate change. How do Zurich’s sustainability commitments help address this critical issue?
Zurich has been a decade-long advocate for energy transition and climate resilience. We believe we must lead the charge toward achieving a net-zero economy. We were one of the first insurers to sign the UN Global Compact in 2011 and the Principles for Sustainable Investment in 2012. In 2019, we announced our commitment and launched a plan to fully decarbonize our investment portfolio by 2050, and on March 31, 2022, Zurich announced that we’re bringing our targets to achieve
net-zero emissions in our operations forward by 20 years.
Climate risk is a business risk, as well as a risk to society. We all benefit when that risk is managed. Sustainable business practices are good both for a company’s bottom line and the world in which we live. As insurers, we’re aligned with our customers in the desire to minimize the financial impacts of climate-related risk. Our clients demand action and solutions—and Zurich does too.
How do these commitments impact how you work with your auto customers?
Zurich has successfully provided products for the mission-critical sectors of energy, construction, and transportation, including EVs. These products have allowed our customers to be protected as they build toward a low-carbon future while generating incentives for new, sustainable business practices. EV products for F&I provide the opportunity to increase sales of EVs over those with internal combustion engines, playing a role in lowering emissions and protecting our planet. They also offer the chance to grow an auto dealership’s bottom line as its consumers, many of whom are first-time EV owners, are looking to protect themselves against unexpected repair costs.
Another important aspect of Zurich’s sustainability approach is our customer advocacy in regulatory and legislative affairs. Focusing on key issues, state and federal regulatory changes, and notable events, Zurich’s Government & Regulatory Relations team provides timely, actionable insight into governmental policy and regulatory developments that may impact customers. We work in partnership with our government affairs colleagues to inform and guide our customers in these areas and to develop training solutions that help them respond, adapt, and remain compliant.
How is Zurich reducing reliance on combustion engine vehicles and helping meet these
sustainability goals?
Zurich has been focused on sustainability initiatives for more than a decade, with fuel efficiency considerations being top of mind since 2011. In 2019, Zurich set targets in the framework of the UN Global Compact Business Ambition Pledge, aimed at limiting global temperature rise to 1.5°C above pre-industrial levels. Our commitments now include using 100% renewable power in all offices by the end of 2022 and a move to a 100% electric car fleet globally.
EVs are often viewed through a personal ownership lens, but workforce adoption seems crucial. What’s your advice for fleet managers looking for sustainable options?
Making this transition ourselves, we understand the magnitude of this undertaking. The move to electric fleets will require a shift in the way we think about our vehicles and driving needs. We have a long way to go in the U.S. to prepare for this transition, and there are still many challenges to solve. In addition to addressing the need for expanded infrastructure, the increased use of power grids and availability of energy on a larger scale, charging vehicles during peak and non-peak hours, fire risk from high-voltage batteries, and insuring properties from fire will all be vital to a successful migration.
Having said that, we know this is the way forward, and the time is right. Auto manufacturers are giving every indication they are committed to zero-emission models. Government influence is at a level not seen before and is accompanied by the promise of broad infrastructure to support the transition. There are considerations related to our reliance on oil, not to mention our collective desire for a cleaner planet.
Looking forward, how will Zurich serve auto dealers into the next century?
Our steadfast commitment to auto dealers fuels our focus on introducing innovative products and services that help dealers evolve and thrive in this dynamic industry. The tradition of innovation and responsiveness to customers is the cornerstone of the Zurich brand. We’re committed to a greener future and playing a critical role in helping consumers with climate resilience.
In addition to developing innovative solutions, we’ll continue to help auto dealers anticipate change and capitalize on the opportunity change presents. For example, over the past few years, we’ve seen an acceleration in consumer shopping online and an influx of online retailers. Even before these trends took hold, we worked with dealers on their digital transformations, offering F&I product information to consumers on dealers’ websites and training dealership employees on providing a great virtual selling and delivery customer experience. So, we’ll continue to help auto dealers anticipate change and be a trusted partner alongside them as they take on new challenges.
Over the past 100 years, global insurer Zurich North America has worked alongside its auto dealer customers to meet these new challenges and to develop solutions that help accelerate growth and protect their business. Today, that means offering EV-tailored solutions that will help make zero-emission transportation more affordable, reliable, and sustainable, from covering the replacement or repair of high voltage batteries to offering drivers roadside assistance benefits, such as a towing service to the nearest charging station.
We spoke with Vince Santivasi, head of direct markets for Zurich North America, to learn how the company is addressing the emerging and evolving needs of the auto industry—and why these efforts are so critical now.
To use fewer parts and reduce emissions related to automotive repair, Zurich purchases green parts, including remanufactured, used, and recycled components. Using green parts prevents the need for new parts to be manufactured, resulting in significant energy and resource savings worldwide.
In 2020, Zurich was named the insurance leader in the Dow Jones Sustainability Index, one of the most highly regarded measures of sustainability performance of industry, evaluating the sustainability of thousands of publicly traded companies. The fact that Zurich was ranked ahead of so many other financial institutions clearly shows that our commitment to sustainability is real and that our efforts to be known as one of the most responsible and impactful businesses in the world are beginning to be recognized.
What other ways is Zurich working to meet the needs of current and future EV owners?
While momentum behind EVs is evident, there is still uncertainty about technology, reliability, and ownership costs. In addition, consumers are expressing "range anxiety"—worry created by concern over a lack of charging stations across our roads and highways and the potential to run out of power between destinations. So, the pace of infrastructure needed to support EV power needs to move forward rapidly, and consumers will need confidence in EV technology and reliability.
Zurich’s EV protection products address uncertainty about the technology, reliability, and costs of ownership by covering the replacement or repair of most parts, including big-ticket items such as high-voltage batteries. Additionally, Zurich’s EV service contracts include roadside assistance benefits, such as recharging EV batteries that run out of power midtrip and tow service to the nearest charging station.
As the adoption of electric mobility grows worldwide, the largest automotive markets are predicted to be fully electric by 2035. This shift represents the high-tech future of transportation, initiating a necessary step in lowering carbon emissions produced by gas-powered vehicles. As a result, the auto industry is looking for ways to meet the evolving needs of its electric vehicle (EV) customers.
Over the last 100 years, global insurer Zurich North America has worked alongside its auto dealer customers to meet these new challenges and to develop solutions that help accelerate growth and protect their business. Today, that means offering EV-tailored solutions that will help make zero-emission transportation more affordable, reliable, and sustainable, from covering the replacement or repair of high voltage batteries to offering drivers roadside assistance benefits, such as a towing service to the nearest charging station.
We spoke with Vince Santivasi, head of direct markets for Zurich North America, to learn how the company is addressing the emerging and evolving needs of the auto industry—and why these efforts are so critical now.
What does this 100th anniversary milestone mean to the company?
This milestone means a great deal to us because it represents our commitment to customers. From our early days, and the 100 years that followed, we have worked alongside our customers, listened to their unique perspectives and ideas, and used their insights to innovate, problem-solve, and ultimately, develop solutions to help their businesses thrive. We’ve been there for our customers, providing protection for their properties and businesses from a liability perspective. Still, this milestone also reminds us of our evolution in the F&I side of the business—providing protection solutions for car buyers.
Vehicle protection products help car buyers maintain and repair their vehicles, preserve their appearances, and address specific risks—from theft to environmental damage. These products can help handle the unforeseen costs of vehicle ownership that the traditional protections of manufacturers’ warranties and auto insurances often aren’t enough to cover. From an F&I perspective, we have grown exponentially, and as we’ve grown, we’ve become a leader in the industry—an achievement of which we are most proud.
How did Zurich first start working with the
auto industry?
January 1, 2022, officially marked the 100th anniversary of Zurich Direct Markets (DM). Our business started as Universal Underwriters Group (UUG) in Kansas City, providing 85 Ford dealers with fire insurance. Since then, Zurich has become one of the most extensive finance and insurance (F&I), as well as property and casualty (P&C), providers to U.S. franchised auto dealers. To put that in perspective, we have been serving car dealers since just after the Model T was built, and now, we’ve seen the first electric vehicle roll off the assembly line. We’ve helped dealers through the Great Depression, World War II, and now, the global COVID-19 pandemic.
Vince Santivasi
Head of Direct Markets,
Zurich North America
How does this growth benefit your customers in the auto industry?
We’ve evolved from simply being an insurer that helps protect business losses to becoming a thought leader and advocate for our customers. Our customers are at the center of everything we do. Our customer council, for example, is one of our most valued channels for consumer insight and learning. For more than 25 years, Zurich has convened this council, made up of 12 to 15 auto dealer leaders from around the U.S, to serve as a think tank, contemplating an industry facing continuous and rapid change. The group exchanges ideas that help dealers solve problems, think differently about aspects of their businesses, and transform their operations. What we learn during our time with the council helps us clearly understand the industry’s concerns and challenges and leads us to solutions that best serve our customers. This experience represents a depth of knowledge and expertise that makes us a trusted partner for dealers, one that can provide the guidance and solutions dealers can rely on to help them prepare for, and make the most of, the challenges and opportunities that lie ahead.
One of those challenges is climate change. How do Zurich’s sustainability commitments help address this critical issue?
Zurich has been a decade-long advocate for energy transition and climate resilience. We believe we must lead the charge toward achieving a net-zero economy. We were one of the first insurers to sign the UN Global Compact in 2011 and the Principles for Sustainable Investment in 2012. In 2019, we announced our commitment and launched a plan to fully decarbonize our investment portfolio by 2050, and on March 31, 2022, Zurich announced that we’re bringing our targets to achieve net-zero emissions in our operations forward by 20 years.
Climate risk is a business risk, as well as a risk to society. We all benefit when that risk is managed. Sustainable business practices are good both for a company’s bottom line and the world in which we live. As insurers, we’re aligned with our customers in the desire to minimize the financial impacts of climate-related risk. Our clients demand action and solutions—and Zurich does too.
How is Zurich reducing reliance on combustion engine vehicles and helping meet these sustainability goals?
Zurich has been focused on sustainability initiatives for more than a decade, with fuel efficiency considerations being top of mind since 2011. In 2019, Zurich set targets
in the framework of the UN Global Compact Business Ambition Pledge, aimed at limiting global temperature
rise to 1.5°C above pre-industrial levels. Our commitments now include using 100% renewable power in all offices
by the end of 2022 and a move to a 100% electric car
fleet globally.
To use fewer parts and reduce emissions related to automotive repair, Zurich purchases green parts, including remanufactured, used, and recycled components. Using green parts prevents the need for new parts to be manufactured, resulting in significant energy and resource savings worldwide.
In 2020, Zurich was named the insurance leader in the Dow Jones Sustainability Index, one of the most highly regarded measures of sustainability performance of industry, evaluating the sustainability of thousands of publicly traded companies. The fact that Zurich was ranked ahead of so many other financial institutions clearly shows that our commitment to sustainability is real and that our efforts to be known as one of the most responsible and impactful businesses in the world are beginning to be recognized.
