Let Warrantech’s Extensive Industry Expertise Take Your Business Further

By: Jeff Hatch

November 29, 2016

There’s a lot to be said for experience. Having someone in your corner who has a greater understanding of what you are trying to accomplish can help you fully realize your goals and even uncover new opportunities that you never knew existed. That’s what we do best.  
 
Warrantech is comprised of service contract / insurance industry veterans and is led by a management team whose members each average more than 23 years in the business. Our executives are thought-leaders who serve as industry board members and conference speakers, and possess numerous industry designations and certifications. This expertise translates into a comprehensive perspective with vast insight that enables us to uncover hidden growth opportunities and structure programs that offer a high-value proposition for our partners and their customers. 
 
Our real-world experience also guides our team to help clients refine their sales strategies and create lucrative programs that build customer loyalty and enhance brand image. With a team of highly skilled underwriters, actuaries, legal/compliance professionals, marketing and management experts, Warrantech has the depth of knowledge to launch and administer your program successfully within your defined timelines. 
 
Our experienced team is masterful at driving large, complicated projects, based on years of integrating, developing and managing a variety of well-positioned acquisitions and meaningful, large-scale client programs. We are able to design, develop and implement a program with minimal strain on your team, while working within any desired parameters you establish. We typically focus on:
 
Optimization of price tiers and bands
Ensuring all eligible products are covered
Designing clear and concise customer terms and conditions
Continuous development of marketing materials and sales tools
Robust field and online training programs
Aftermarket and renewal marketing activities
Development of appropriate compensation and incentive programs  
 
The Warrantech team has the expertise to ensure that you receive a carefully coordinated program that integrates all aspects of your business, including sales, service and marketing. In turn, this ensures a perfect fit for both your business and your customers.
 
Visit warrantech.com or give us a call at 800.833.8801 to learn more about how we can help you.

Filed Under: business, expertise, industry, marketing, sales, service, Warrantech

Purposeful Transparency — Another Reason To Partner With Warrantech

By: Jeff Hatch

June 08, 2016

At Warrantech, we believe that the cornerstone of a successful relationship is the constant sharing of program information with our partners, including underwriting results and key performance indicators (for example: customer satisfaction, service levels and product reliability). We feel that this purposeful transparency — coupled with our unmatched flexibility, innovation and deep industry expertise — are the attributes that separate us from the competition. 
 
As a subsidiary of AmTrust Financial Services, a multinational property and casualty holding company that is one of the strongest and most financially stable companies in the industry, we are able to provide both global underwriting and administrative services. This vertical integration creates complete transparency and a level of insight into program performance that is unparalleled, which in turn leads to increased efficiencies and optimization for your business plan. 
 
During quarterly business reviews with our partners, we present key findings and can pinpoint issues right down to the part level. This gives us the opportunity to help alleviate any concerns with your program and give you deeper insight into its performance, which includes, but is not limited to:  
 
Industry observations and patterns
Best-in-class performance/benchmark analysis (including ROI and opportunity costs)
Brand leaders and industry innovations
Competitive intelligence (industry and market leaders)
Best practices
Marketing updates
Regulatory environment review
Contact center KPIs/SLAs
Experience reports
 
We also provide real-time access to our systems, giving each partner the ability to track program performance at any given time. Additionally, to ensure that the program is maintained in a manner consistent with your standards, we can structure your program so that your employees can be embedded at the Warrantech facility. This transparency enables us to provide you with profit sharing programs so that you are able to benefit even further from the ongoing success of your program. 
 
To learn more about Warrantech’s unparalleled transparency, visit warrantech.com or call 800.833.8801.
 
 Warrantech Program Transparency at a Glance
 
 Program Accessibility:
   • Open communication 
   • Real-time program performance
   • Complete system access
   • Embedded client employee options
 
 Program Design Customized to Meet Each Client’s Needs: 
   • Creation of policy and procedure handbook 
   • Personalized performance metrics
   • Customer satisfaction levels using
     - Customer surveys
     - Quality assurance
     - Net Promoter Score (NPS)
     - Social media

Filed Under: business, client, innovation, insight, integration, partner, plan, program, transparency

How Well Do You Know Your Service Plan/Warranty Administrator?

By: Jeff Hatch

December 23, 2014

Service contracts and extended warranties can be a great source of revenue for retailers, manufacturers and distributors. And their use as a customer satisfaction and retention tool can never be overstated. But what happens if your administrator ceases operations or is otherwise unable to service your business?

To be an approved administrator, certain licenses must be obtained along with proof of financial stability. Most administrators in the marketplace satisfy this last requirement by securing a contractual liability insurance policy (“CLP”) issued from an insurance company. This CLP requires the insurance company to “stand in” for the administrator in the event the obligations to the consumer have not been met. But what happens if the insurance company cancels the administrator, cannot provide administrative capabilities or ceases operations?

While the name of the administrator, and often the insurer, is listed in the service contract, when the customer seeks payment of a claim or a return of their funds, and the administrator and/or insurer no longer answer their phones, where does the customer turn?

Throughout the years, there have been numerous instances where either the administrator and/or the insurer of a service contract program have gone out of business or otherwise ceased operations. When this happens, your customers may not get their claims paid or their refunds processed and YOU will be their target of ire and will often be compelled to make good to the customer out of your own pocket.  How do you prevent this?

At AMT Warranty and its subsidiary Warrantech, we believe it is critical that you know and understand the capabilities and financial wherewithal of your administrator and your insurer. Conducting due diligence and asking the right questions can make all the difference between a service plan program that provides you with revenue and customer satisfaction and one that is a customer service and financial nightmare.

To ensure your service contract providers will be there when your customers need them most, we believe you should be asking the following:

• How long have they been in business?
• What is the experience and background of their management team?
• What is the size of their business?
• What is the ownership structure of their business?
• What is their Better Business Bureau rating?
• Who is their insurer?
• How many insurers have they had over the past 10 years?
• Are they and the insurer under common ownership?
• What is the insurance structure of the CLP (e.g., is the insurance company standing in on the “first dollar” of risk or are they simply providing an excess of loss policy)?
• If your administrator is using an “excess of loss policy,” is your administrator reserving sufficient monies needed for the potential risk not covered under the insurer provided policy?
• How long has their insurance company been in business?
• What is their financial size and A.M. Best rating?
• Are the respective companies compliant with SOX, PCI, SSAE 16, etc.?
• Do they have audited or public financials?
• Have you visited their facilities?
• Are they outsourcing any critical functions?
• Are you doing reference checks?

A well designed and maintained service contract is only possible if all of the parties to the transaction are fully capable of performing their various roles and can weather periodic or irregular changes to their business model or performance, especially if your provider is not vertically integrated with the insurance company.

Filed Under: administrator, business, claims, contract, financials, insurer, manufacturers, retailers, service, warranty

Tips For Buying A Vehicle Service Contract

By: Jeff Hatch

December 17, 2014

A vehicle service contract (VSC) is a smart investment. It can help cover the cost of unexpected repairs and keep your vehicle running at its best. But how do you know if the plan is right for you? Here are a few questions you can ask your VSC salesperson to make sure you know exactly what you’re getting.  

How Much Does The VSC Cost?
Obviously, money is one of the most important factors in the decision-making process. Is your vehicle worth the investment? If so, you’ll want more coverage, which means more money. However, the amount you pay now could add up to hundreds of dollars in savings later. 

What Does The VSC Cover?
Consider your driving habits and the make and model of your vehicle. For instance, if the company who manufactures your car is known for the quality of their interior components and you plan on keeping your vehicle in a garage, then you probably don’t need paint and fabric protection as part of your VSC. 

How Long Does The VSC Last?
Again, the way you drive has a big impact. If you plan on keeping the vehicle for several years or know you’ll be spending a lot of time on the road, then having a VSC makes a lot of sense. You’ll also want to know if your vehicle is currently under a manufacturer’s warranty since the VSC typically goes into effect after the manufacturer’s warranty expires.

Who Backs The VSC?
Make sure that the company behind your plan is reputable. Some good indicators to help determine credibility include an A.M. Best rating, which demonstrates financial strength and stability, and a Better Business Bureau rating, which assesses the company’s business practices. Also, look at how long the company has been in business and examine their background.

How Are Services And Claims Handled?
Find out if the company has a network of service providers. Are they in your area and readily available to work on your vehicle? Once this has been determined, inquire about claim submission and processing. Can you submit claims online? Does the company have a reliable customer service department to assist you? And do they provide fast and convenient service to help get you back on the road as soon as possible?

Don’t Be Afraid To Ask Any Other Questions You Might Have
You should never feel pressured into purchasing coverage that you don’t understand. If there is anything about your vehicle service contract that doesn’t make sense to you, don’t hesitate to ask. Always remember, it is the salesperson’s responsibility to assist you. If you don’t feel that you are getting the help you need to make a proper purchasing decision regarding your VSC, then you probably aren’t going to get the right help should something go wrong with your vehicle.

Got a question about one of our vehicle service contracts? Contact us online at https://warrantech.com/contact-us/ or call at 800.833.8801. We’re happy to help.

Filed Under: A.M., automotive, Best, Better, Bureau, Business, claims, contract, service, vehicle, VSC, Warrantech

Using the Better Business Bureau to Purchase Your Vehicle Service Contract

By: Global Administrator

January 21, 2014

A vehicle service contract is a great way to cover service repairs and maintenance costs that inevitably come with ownership. It not only allows you to protect your investment and increase your car's value, it provides you with a reliable way to make payments that fit within your budget so that you can avoid having any large or unexpected bills.

But do you know what you're getting with your vehicle service contract? Does it meet your exact needs and match your particular driving habits? And, most importantly, who is the provider? The Better Business Bureau has compiled a list of helpful questions for you to consider before purchasing your vehicle service contract:

  • Who backs the service contract? It may be the manufacturer, dealer, or an independent company. Many service contracts sold by dealers are handled by independent companies called administrators. Administrators act as claims adjusters, authorizing the payment of claims to any dealers under the contract.
  • What's the cost of the auto service contract? Usually, the price of the service contract is based on the car make, model, condition (new or used), depth of coverage and length of contract. The cost of the service contract can range from several hundred dollars to more than $2,000. In addition, you may need to pay a deductible each time your car is serviced or repaired.
  • What is covered and not covered? Few vehicle service contracts cover all repairs. Watch out for absolute exclusions that deny coverage for any reasons. For instance, if the contract specifies that only "mechanical breakdowns" will be covered, problems caused by "normal wear and tear" may be excluded.
  • How are claims handled? When your car needs to be repaired or serviced, some service contracts permit you to choose among several service dealers or authorized repair centers. Others require the car owner to return the vehicle to the selling dealer for service. Find out if you will need prior authorization from the contract provider for any repair work or towing services. Ask how long it will take to obtain authorization and whether you can get authorization outside of normal business hours.
  • What are your responsibilities? Under the contract, you may have to follow all the manufacturer's recommendations for routine maintenance, such as oil and spark plug changes. Failure to do so could void the contract. To prove you have maintained the car properly, keep detailed records, including receipts. Find out if the contract prohibits you from taking the car to an independent station for routine maintenance or performing the work yourself. The contract may specify that the selling dealer is the only authorized facility for servicing the car.
  • What is the length of the service contract? If the service contract lasts longer than you expect to own the car, find out if it can be transferred when you sell the car, whether there's a fee, or if a shorter contract is available.

Make sure that you read and thoroughly understand the agreement before you sign, and check to see that all verbal promises have been included. It is also a good idea to contact the Better Business Bureau for a reliability report on the business offering you the contract. A quick visit to the BBB website can tell you instantly whether or not a business meets their Accreditation Standards for integrity, honesty, transparency and responsiveness. http://www.bbb.org/us/Find-Business-Reviews/

Filed Under: Better, Bureau, Business, contract, service, Vehicle

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