F&I Industry

The Finance & Insurance (F&I) industry is composed of a variety of organizations that are responsible for processing the financing and insurance programs in the vehicle sales processes. Within the basic F&I structure, there are organizations, collectively referred to Providers & Administrators (P&A), who service the F&I industry by providing the following funtions:

  • Process financial products, such as various loan and long term leasing programs related to the purchasing of vehicles.
  • Manage and provide third party administration activities for various insurance products including basic vehicle insurance programs, vehicle maintenance, vehicle wear and tear type insurance programs and many other types of unique or specialized insurance products.
  • Provide insurance and banking organizations with both monetary and program services in addition to the basic programs provided within the F&I department at the vehicle point of purchase (i.e. car dealerships).
  • Provide Third Party Administrator (TPA) services. These services can include the management of client contracts, the payment of dealer F&I management activities, and the management of insurance products provided.
  • Provide services to support the above organizations. This could include claims payment services, software applications to manage various processes, and storage of client contracts.

Many times, these above service providers maybe working independently or in concert to provide services and programs. As such, all of these service providers are subject to performing their own SSAE 16 audit report. For those instances in which these companies use other services providers, those providers also typically need an SSAE 16 audit.

Why is the SSAE 16 Audit Necessary?

Outsourcing such important tasks to various service provider organizations carries a huge risk to the various organizations and customers who are all a part of the F&I processes and programs. The SSAE 16 audit report provides an independent review of the internal and operational controls related to the all aspects of these services. This is vitally important to both your customers and the other F&I industry organizations you partner with. Also, the SSAE 16 audit provides transparency around the internal and operational controls of the various organizations within the F&I industry in relation to the product and process offerings made available to the vehicle purchaser. In fact, many organizations within the F&I industry are not outsourcing to a service providers who cannot provide a SSAE 16 independent audit report.

Contact Us

SSAE 16 Professionals has assembled top tier leadership to help our clients through the SSAE 16 (SOC 1) and SOC 2 audits. For further information regarding SSAE 16 reports or to request a fee proposal from SSAE 16 Professionals, please visit our Contact Us page to submit an informational form or call 866.480.9485 today. We look forward to hearing from you!