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Warranty Consulting

Providing customized warranty solutions to help organizations build brand loyalty, strengthen customer relationships, and maximize revenue potential.

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Enhanced customer relationships

Long-term connections developed with your customers through post-sales support and product repair cycles.

Holistic program management

Dedicated and knowledgeable advisors who understand your business and where to integrate warranty solutions.

Additional revenue streams

Value-added services, such as extended warranty programs, provide additional revenue streams with favorable margins.

In a demanding and competitive marketplace, an organization’s success hinges on its ability to differentiate itself and foster long-term relationships with its customers.

Extended warranty programs are a way businesses can enhance customer experience, while also strengthening customer relationships. A customized warranty solution enables companies to influence the customer experience by establishing a program that provides meaningful insurance protection, maximizes revenue, and fosters customer loyalty.

How Marsh’s warranty team can help

Whether you are an organization interested in implementing a new warranty program or seeking to optimize an existing program, our experienced team of advisors can deliver tailored warranty solutions and long-term revenue growth opportunities.

As your trusted partner, we aim to help your organization better manage its exposures, while leveraging proven methodologies to stay ahead of risk and remain resilient.

Our knowledge and expertise span across multiple industries, from traditional users of extended warranty programs to new adopters.

Traditional sectors offering extended warranty programs:

  • Retailers — specialty and mass merchant
  • Automotive — dealerships, original equipment manufacturers (OEMs), electric vehicles, and power sports vehicles
  • Consumer electronics
  • Home goods, furniture, jewelry, health and fitness machines, and appliances
  • Mobile device and computer manufacturers and distributor
  • Associations and membership club

Sectors now realizing the potential benefits of offering an extended warranty program:

  • Medical, healthcare, and pharmaceutical equipment and devices
  • Green energy
  • Education institutions
  • Financial institutions
  • Consumer and commercial/enterprise solutions

FAQs

Extended warranties are service contracts offered to consumers in addition to the standard warranty on purchased goods and services. These service plans typically extend the time of coverage, but may also expand coverage to include things not provided by the original warranty. For example, extended auto warranties may offer ancillary plans such as tire and wheel, scratch and dent, and roadside assistance.

Insurance and extended warranties are both forms of protection for your assets, but they differ in a few key ways.

Insurance is a type of financial protection that covers you or your company against unexpected events, such as accidents, theft, or natural disasters. You pay a premium to an insurance company, and in exchange, the company agrees to pay for any covered losses that you may experience during the coverage period. Insurance policies typically have deductibles, which are the amount you must pay out of pocket before the insurance company starts covering the rest of the costs.

On the other hand, extended warranties are a type of service contract that provides additional protection for a specific product beyond the manufacturer's warranty. Extended warranties typically cover repairs or replacements for a set period of time, and they may also include additional benefits such as free maintenance or technical support. While manufacturer’s warranties are typically included in the purchase price, extended warranties are usually sold by the manufacturer or a third-party provider at an added cost, and they are often optional.

In summary, extended warranties typically cover the cost of service, repairs and/or replacement necessitated by mechanical failure. Insurance policies are more likely to cover damage and loss of property.

Setting up an extended warranty program can be challenging for a company for several reasons:

  • Cost: Offering an extended warranty program can be expensive, as it requires additional resources to manage and administer the program. The company must also consider the cost of repairs or replacements that may be covered under the program.
  • Risk: The company must assess the risk of offering an extended warranty program, as it may be difficult to predict the likelihood and cost of repairs or replacements. If the company underestimates the risk, it may end up losing money on the program.
  • Competition: The market for extended warranties can be highly competitive, with many companies offering similar programs. A company must differentiate its program from competitors and offer attractive terms to customers in order to be successful. 
  • Customer perception: Some customers may view extended warranties as unnecessary or a waste of money, which can make it difficult for a company to sell the program. The company must effectively communicate the benefits of the program and address any concerns that customers may have.
  • Regulatory requirements: Depending on the jurisdiction, there may be regulatory requirements that a company must comply with in order to offer an extended warranty program. These requirements may include licensing, disclosure, and reporting obligations.

 

Overall, setting up an extended warranty program requires careful consideration of the costs, risks, and regulatory requirements, as well as effective marketing and communication to customers.

A properly designed program provides your organization with greater control over the customer journey, and delivers a superior customer experience while maximizing your revenue potential.

Marsh’s warranty team offers comprehensive, a la carte, and tailored services to:

  • Help you navigate the complex regulation and compliance landscape in the US market.
  • Manage a procurement process of insurance and administration partners for warranty programs.
  • Handle all pricing and contract negotiations.
  • Oversee program implementation and launch.
  • Provide ongoing program management, optimization, and analytics.

 

Programs can be fully comprehensive where an insurance partner takes on all aspects of the program; a client may wish to do some of the servicing itself; or a client may include a host of marketing partners, insurers, service centers, and technology that Marsh’s Warranty Practice team can navigate and establish for the client.

Why Marsh

With a robust network of dedicated warranty consulting professionals well-versed in building, managing, and maximizing extended warranty programs for world-class client brands, our goal is to help you realize the benefits of a properly designed program.

Our knowledge and experience in the extended warranty space deliver best-in-class partners and tailored solutions across every aspect of your extended warranty program, which will ultimately provide a superior customer experience, while maximizing your revenue potential.

Client testimonials

The Bosch Group

"The Marsh Warranty Practice has been instrumental in the launch and development of the warranty program for which I manage. The level of expertise and the combined experience in the warranty business is unmatched by any other program any other insurance company could offer."

Octaviant Financial

"Extraordinary responsiveness and engagement."

Honda Canada Finance

"Excellent quality. Intelligent, knowledgeable and impressively responsive service. Marsh understands our business and the industry like no one else."

Our people

Troy Lewis

Troy Lewis

US Warranty Practice Leader

Sanja H.Abdic

Sanja H.Abdic

VP, Warranty Operations - Vehicle Programs Leader

Greg Gadbois

Greg Gadbois

Business Development Leader, Warranty Practice

Jennifer Blacklock

Jennifer  Blacklock

VP, Warranty Solutions Management

Paul Ruyle

Paul Ruyle

Business Development Manager, Warranty Practice

Our work

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Case Study

Restructured warranty program boosts performance for manufacturer

10/06/2023
Closed cardboard boxes and wrapped with adhesive on conveyor roller

Case Study

Manufacturer’s warranty program improves customer experience

10/06/2023
Business People Meeting to analyse and discuss and brainstorming the financial report chart data in office Financial advisor teamwork and accounting concept.

Case Study

Global media-tech's warranty program provides savings

10/06/2023

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