US Warranty Practice Leader
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.
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.
Traditional sectors offering extended warranty programs:
Sectors now realizing the potential benefits of offering an extended warranty program:
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:
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:
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.
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.
US Warranty Practice Leader
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