A single Size Won&#039;t Match All Relating To Your Enterprise

August 10, 2016 06:36

Warrantech Announces New Service Network Updates

Warrantech is proud to announce that we have made several updates to our service network, starting with a new field service network management team. Effective immediately, David Velasquez will provide enhanced partnering and direct support as the West Regional Manager, along with Brian Schlepp, Central Regional Manager, and Brian Weaver, East Regional Manager.

We are also excited about the implementation of software solutions from ServicePower, who will provide mobile workforce management tools to drive efficiency and streamline how Warrantech dispatches service centers and schedules appointments with customers.

“One of the many benefits of ServicePower is the transparency it provides our customer service staff with our field, enabling us to provide real-time updates on the status of repairs,” said Ricardo Pina, Warrantech Customer Service Manager. “I am confident that ServicePower will greatly reduce service turnaround times and minimize escalations and complaints.”

ServicePower, which goes live on August 10, will allow customers to pick calendar dates and times, and automatically dispatch service. The program will also report when a service order has not been completed within three days, at which point a servicer will get an alert and the customer will be given an update as well.

Additional support functions being implemented to provide enhanced customer/servicer follow-up include:

• Enrollment available for direct deposit (ACH) for payment of repairs and replacement.

• Completed claims will be processed for payment within 7 business days.

• Warrantech will cover trip/service calls for non-validated repairs (i.e., No Problem Found).

• Implementation of a Parts Order guarantee: Parts Orders through Warrantech’s parts portal are guaranteed for 90 days. In the event the part fails within 90 days, Warrantech will pay servicer for second service call.

• The current market environment dictates the ability to promote increased repair opportunities; we may, as required, opt to use a non-OEM part(s) to complete the service event.

• Improved call center staffing and training to promote a world-class experience.

• Upcoming implementation of the following ServicePower solutions: ServiceDispatch, ServiceStats and ServiceOutsourcing

Warrantech is always seeking ways to improve our business model so that customers and service providers are made a priority and given preferential treatment. We are confident that these new positive changes do just that and will continue to help build stronger partnerships and continued growth.

Article Resource:-https://warrantech.com/blog/august-2016/warrantech-announces-new-service-network-updates/

July 11, 2016 06:08

Turn A Negative Into A Positive With Warrantech

Product failures are inevitable. There’s no way to avoid them. But when they do happen, the way in which they are handled can have a far greater impact and help turn a bad experience into a positive, long-lasting impression.

Warrantech‘s overall philosophy regarding service contract programs is vastly different from the competition. Our belief is that service contracts are a means of building trust and loyalty with customers who have experienced a product failure, in addition to increasing profitability for our partners. We view every claim as an opportunity to turn a negative product mishap into an affirmative relationship-building event. An outstanding claim-handling experience is a micro-marketing opportunity that yields macro-marketing effects with customers and their circle of influence.

“When products break, customers can lose confidence in the product manufacturer and ultimately the retailer that sold it to them,” says Warrantech President and CEO Sean Stapleton. “However, if a rapid and convenient resolution is provided, a higher level of trust and loyalty is often developed with the customer.”

We understand the importance that a positive service experience can have for our partners and feel that our employees are extensions of our clients on every call and every transaction. That’s why we provide our employees with the knowledge, training, skills, resources and environment needed to provide an exceptional service experience with every customer they interact with.

This approach creates a customer who is not only satisfied with the outcome of the transaction, but a customer who walks away from the experience with a positive outlook on the service contract, Warrantech and, most importantly, our partners. Through continual contact center associate training and monitoring, Warrantech is able to maintain consistency in responses and a positive customer experience.

“We have a unique opportunity to affect customer loyalty,” says Stapleton. “Customers recognize and accept that product breakdowns can happen to even the most reliable products. The customer’s perception of the product issues are more often driven by our responses. I see service contracts and warranty programs as one of the most powerful loyalty solutions out there. It actually is a game changer.”

Article Resource:-https://warrantech.com/blog/july-2016/turn-a-negative-into-a-positive-with-warrantech/

June 20, 2016 07:52

Purposeful Transparency — Another Reason To Partner With Warrantech

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.

Article Resource:-https://warrantech.com/blog/june-2016/purposeful-transparency-—-another-reason-to-partne/

May 10, 2016 06:27

Warrantech Featured In The March Issue of Dealerscope Magazine

Guy Koenig, Chief Strategic Officer for Warrantech, recently took part in Dealerscope magazine’s roundtable discussion regarding companies that sell extended service plan programs to consumers through retailers. Here is what he had to say in response to the following question:

“What major initiatives/strategies has your company planned to help CE and appliance dealers make more money from warranty sales in 2016?”

Warrantech continues to develop unique products and solutions that meet the changing needs and demands of our retail partners and their customers. Most recently, significant focus has been placed on launching our Connected Life program to provide coverage and services for multiple devices under a single protection plan. This customizable program encapsulates everything from automotive, mobile devices, consumer electronics, and consumer appliances. The flexibility of our solutions gives CE and Appliance dealers an opportunity to expand their markets and reach new profit levels, while providing their customers with added value on their most important purchases.

Article Resource:–https://warrantech.com/blog/march-2016/warrantech-featured-in-the-march-issue-of-dealersc/

May 4, 2016 06:39

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One Size Does Not Fit All When It Comes To Your Business

Selling your customers something straight off the shelf can be fast and convenient. But it can also mean that you’re running the risk of offering a run-of-the-mill product that wasn’t necessarily designed for them or for your business. The best way to differentiate yourself and drive business growth is to offer something that no one else has — something that everyone will want.

In concert with your team, Warrantech can build a truly unique set of protection offerings for your customers that provide value and drive loyalty. Our mission is to provide our clients’ customers with the flexibility to purchase service contracts and obtain service on their terms and on their timelines, while reinforcing the long-term relationship between our clients and their customers.

Warrantech offers a full-stop solution for the various aspects of a successful program and can also utilize a “menu-style” approach where you pick and choose what functions we would provide — at the outset of a program or during its life cycle. Moreover, Warrantech can tailor a program with benefits and terms that meet the unique needs of your customer base. Alternatively, or in parallel, we can leverage our existing programs to ensure speed-to-market for the program.

Lastly, and unlike many competitors in the service contract administration industry, we are able to provide protection solutions beyond the standard extended service plan solution, including, but not limited to:

• Missed point-of-sale/renewal programs

• Loyalty/membership programs

• Concierge services

• Price/return guarantee programs

• Monthly payment/subscription plans

• International coverage and service

• Deductible and no-deductible options

• OEM programs

• Value pack options (multiple products under one service plan)

• Identity protection and fraud resolution

• Employee benefit packages

Warrantech offers unmatched flexibility, complete administrative support and a holistic approach to service contract programs. So whether you’re a retailer, dealer, distributor, or manufacturer in the consumer or automotive market, we have a customized solution that will work specifically for you.

To learn more, visit warrantech.com or give us a call at 800.833.8801.

Filed Under: customized, flexibility, plans, service, solutions, unique, warrantech

April 14, 2016 06:15

Why Should You Consider An Extended Service Plan?

1. Financial Strain

If you feel that having to purchase an entirely new item or making costly repairs would drain your bank account or leave you with a mountain of credit card debt, then you should definitely look into an extended service plan (ESP). It can actually enhance the value of your product as opposed to being a financial burden in the event that something does go wrong. With an extended service plan, you’re essentially transferring risk to the company that sold it to you and trading it in for peace of mind. Regardless of the product’s cost, having a smaller monthly ESP payment instead of an unexpected, large repair bill is a wise investment that can help keep you from breaking the bank.

2. Time Constraint

Another key consideration is time. An extended service plan can help: 1) Take the guesswork out of searching for a quality repair company to fix your damaged merchandise on short notice. 2) Find a replacement product and have it shipped to you in a timely manner if repair is not an option. 3) Provide you with on-site repair in many instances.

In short, a good extended service plan is designed to provide you with immediate assistance. If you are having trouble with a product, you’ll have instant access to an authorized service professional, via a toll-free number, who can diagnose the problem and help you get on with your day – right away.

3. Product Reliability

No matter how well designed a product is, nothing lasts forever. Failure is inevitable. That’s why it’s always a good idea to go online and research the potential shortcomings of the particular product you intend to purchase. Check into the long-term durability of that brand to determine its reliability and what type of coverage would be most beneficial to you.

Also, think about the implications of being without your favorite consumer appliance – whether it’s a refrigerator, television, dishwasher, washer/dryer or other durable good. If you feel that being without this specific item would be a burden to you, then an extended service plan serves as a good complement.

4. Accidents Happen

Consumer electronics have become more mobile over the years, which means that they are more susceptible to accidental damage from typical everyday use. Keep your habits and behaviors in mind as to how you use products like these. If you travel a lot or are constantly on the go, then your mobile devices could be at greater risk. And if you depend on a smartphone, computer tablet or laptop for important things like work or college assignments, just imagine how difficult it would be if you didn’t have coverage and had to spend a lengthy amount of time without them.

5. Long-Term Investment

It is human nature that we would treat a car that we intend to purchase and drive for a long period of time differently than we would a car with a short-term lease. If it belongs to us we’re more likely to keep it cleaner, buy higher-grade gasoline and go out of our way to avoid bad roads. The same can be said of any product. If you view something as a long-term investment more than simply a fleeting purchase, you’ll want to keep it operating at its very best for as long as possible.

An extended service plan is a must-have in situations like this and can be useful for items that depend on steadfast service. As always, be sure to read the coverage terms of your extended service plan to be certain that it meets your needs, and make sure that it includes a reliable repair plan to help keep your most important appliances working longer and to the best of their abilities.

For more information regarding extended service plans, visit warrantech.com or contact us today at 800.833.8801.

Filed Under: consumer, electronics, extended, finance, investments, plan, reliability, service, time

Article Resource:-https://warrantech.com/blog/april-2016/why-should-you-consider-an-extended-service-plan/

January 22, 2016 03:01

Blogger

Warrantech Named As A Finalist In The 2015 Stevie Awards For Sales & Customer Service

Warrantech was named as a finalist today in the Award for Innovation in Customer Service category in the 9th annual Stevie® Awards for Sales & Customer Service. This marks the third straight year that Warrantech has been recognized as a Stevie Award winner.

Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction.

More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014.

Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.

More than 100 members of several specialized judging committees will determine the Gold, Silver and Bronze Stevie Award placements from among the finalists during final judging, which will take place January 26 - February 4.

"The Stevie Awards for Sales & Customer Service continues to be the fastest-growing of our international awards programs," said Michael Gallagher, president and founder of the Stevie Awards. "The sheer number of nominations is matched by the increasing quality of those nominations. We congratulate all of this year’s finalists and wish them well in the next phase of judging."

The final results will be announced during a gala banquet on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are expected to attend.

Article Resource:- https://warrantech.com/blog/january-2015/warrantech-named-as-a-finalist-in-the-2015-stevie/

To know more click link:- http://extended-warranty-services-review.toptenreviews.com/warrantech-review.html

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January 19, 2016 23:29

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Dos and Don’ts — A Warrantech Customer’s Perspective

The following advice comes from a Warrantech customer who purchased an extended service plan for a tablet. All claims are handled differently – depending on product, problem and usage – but hopefully this provides you with some insight as to what to expect and how you can be prepared in the event that you need to file a claim.

I had to use this extended service plan on a previous tablet I bought – all went smooth. After it broke I made a claim, got a prepaid label, mailed the broken one in, and they sent me a check in the mail to cover what I paid for it. I’ve bought it again for another tablet I got my daughter. Hopefully this one won’t break, but you never know with kids.

Had to use them again [for another electronic device], same as above – no complaints, way cheaper than buying insurance from your phone carrier.

Couple words of advice as to why some may run into issues:

1) Make sure you buy this extended service plan within 90 days of your tablet purchase.
2) Hold on to the receipt and original packaging (if it was bought online it’s much easier to do).
3) Register your extended service plan as soon as possible.

I’ve always done this with these items, so when it came time for a claim it’s a matter of answering a few questions and then you get your shipping label and send it off. I’ve yet to have them actually repair/replace a $0-200 price range tablet; they have always sent me the replacement cost in a check.

Last comment – be sure to read what you are purchasing. Some plans are only extended warranties, some include accidental protection. Also, be sure to buy the right policy to match your tablet’s retail value. Don’t buy a $0-200 plan if you have a $500 tablet.

To know more click link:- http://extended-warranty-services-review.toptenreviews.com/warrantech-review.html

January 6, 2016 23:30

AmTrust Reports Strong Profit Growth For Third Quarter 2014

AmTrust Financial Services (AFSI), the parent company of Warrantech, announced strong earnings results for the third quarter of 2014.

For the third quarter 2014, operating earnings were $135.4 million, or $1.70 per diluted share, an increase of 107.8%, compared to $65.1 million, or $0.83 per diluted share, in the third quarter of 2013. Third quarter 2014 net income attributable to common stockholders grew to $156.6 million, or $1.97 per diluted share, an increase of 168.9% from $58.2 million, or $0.74 per diluted share, in the third quarter 2013. Third quarter 2014 annualized operating return on common equity increased to 34.2% from 21.1% in the third quarter 2013. Annualized return on common equity was 39.5% for the third quarter of 2014 and 18.9% for the third quarter of 2013.

During the first nine months of 2014, operating earnings were $339.9 million, or $4.28 per diluted share, an increase of 89.2% compared to $179.7 million, or $2.31 per diluted share, in the first nine months of 2013. During the first nine months of 2014, net income attributable to common stockholders grew to $362.7 million, or $4.57 per diluted share, an increase of 69.9% from $213.5 million, or $2.75 per diluted share, in the first nine months of 2013. Year to date 2014 annualized operating return on common equity increased to 30.1% from 19.8% year to date 2013. Year to date 2014 annualized return on common equity was 32.1% compared to 23.6% year to date 2013.

Third Quarter 2014 Financial Highlights

• Gross written premium of $1.52 billion, up 41.1%, and net earned premium of $914.4 million, up 49.0% from the third quarter 2013
• Operating diluted EPS of $1.70 compared to $0.83 in the third quarter 2013
• Annualized operating return on common equity of 34.2% and annualized return on common equity of 39.5%
• Service and fee income of $117.6 million, up 30.7% from the third quarter 2013
• Operating earnings of $135.4 million compared to $65.1 million from the third quarter 2013
• Net income attributable to common stockholders of $156.6 million compared to $58.2 million in the third quarter 2013
• Diluted EPS of $1.97 compared with $0.74 in the third quarter 2013
• Combined ratio of 91.3% compared to 0.74% in the third quarter 2013
• Service and fee income of $308.1 million, up 29.1% from YTD 2013
• AmTrust’s stockholders’ equity was $2.0 billion as of September 30, 2014

YTD 2014 Highlights

• Gross written premium of $4.63 billion, up 51.3%, and net earned premium of $2.62 billion, up 68.0% over YTD 2013
• Operating diluted EPS(1) of $4.28 compared to $2.31 in YTD 2013
• Annualized operating return on common equity(1) of 30.1% and annualized return on common equity of 32.1%
• Service and fee income of $308.1 million, up 29.1% from YTD 2013
• Operating earnings(1) of $339.9 million compared to $179.7 million from YTD 2013
• Net income attributable to common stockholders of $362.7 million compared to $213.5 million in YTD 2013
• Diluted EPS of $4.57 compared with $2.75 in YTD 2013
• Combined ratio of 90.7% compared to 90.8% in YTD 2013
• Book value per common share of $22.56, up from $17.74 at December 31, 2013
• AmTrust’s stockholders’ equity was $2.0 billion as of September 30, 2014

To know more about warrantech feel free to vist:- http://www.wtechauto.com/

December 29, 2015 02:51

Blogger

Extended Service Plans: What’s Behind All The Fine Print?

Using a single-source provider for underwriting and administration offers gains in profit and service.

The real question isn't what's behind the fine print, but rather who is behind the fine print of an extended service plan. In today's economic climate, retailers need to be diligent in determining who can financially back and service their products with plans that don't negatively impact bottom line results or customer relations. While some retailers prefer to act as their own administrator for service, the overhead costs and time required to facilitate work orders, customer service and repairs can often lead to eroding profits and dissatisfied customers. For retailers that opt to rely on an outside provider for administration or underwriting, it can expose your business and customers to financial risks and service levels that don't align with your business goals.

As a retailer, customers trust that you'll stand behind the products you sell with service plans they can rely on. Now, more than ever, retailers need to select partners that not only provide sound financial backing but also the service required to assist when customers need it most. By working with a single-source provider for underwriting and administration of extended service plans, retailers can focus on sales knowing that the money saved and service gained from a customized program can deliver profitable margins and elevated service that keep customers coming back.

Understand the Plan

Knowing the difference between a credible underwriter and administrator is an important distinction to make and one that definitely needs to be evaluated before committing to a company or a program. As a first step, make sure you understand the responsibilities and differences between an underwriter and administrator. An administrator is the company that handles the day-to-day administration of the product's extended service plan such as processing claims and accepting monthly payments for the service. Often, the administrator's name and contact information is featured in the customer literature about the plan. The underwriter is the company that is ultimately responsible for the financial backing of claims according to the terms and conditions of the plan.

Since not all administrators underwrite their own plans and vice versa, there are a number of extended service plan options available that allow retailers to customize a plan that's right for their products. However, the logistics of how a plan is carried out and who carries it out can reveal service inefficiencies, limited profitability and financial burden. In fact, according to some sources, a significant percent of administrators don't underwrite their own plans. The volatility of this approach can cause a number of problems for retailers including lack of funding or term changes that can become the retailer's responsibility in the event the provider declares bankruptcy. While this used to seem like an improbable situation, the recent filings of numerous multinational insurance companies make this harsh scenario a genuine reality.

Once you understand the roles of an administrator and underwriter, evaluating the provider's approach to maintaining financial responsibility and customer service will help determine the best program for your needs.

Financial Accountability

The most important point to consider when evaluating single-source plan providers or underwriters is the financial strength of the insurance company backing the program. If the company is financially unable to provide the benefits required, then you lose money, customers and credibility. Publicly traded insurance companies are an open book when it comes to examining financial status. Some areas to pay attention to include: historically good capital, recent acquisitions, ongoing organic growth and operating cash flows. Several organizations, including A.M. Best, Standard & Poor's and Moody's Investor Service, rate the financial strength of insurance companies. These ratings are among the most widely used indicators of an insurance carrier's financial health, or lack of it. Using these tools to assist in your evaluation is not only credible but universally accepted.

Customer Focus

The most important thing to your customers when they purchase a product with an extended service plan is how they will be cared for should something go wrong with the product. When a product fails, you need to rely on a responsive administrator to diagnose and troubleshoot the problem for customers in a timely and efficient manner. To help evaluate response rates, retailers should look at a provider's First Call Resolution rate, technical training for staff and network of service centers to ensure convenient and expeditious repair of products. In addition, service offerings such as fulfillment which includes carry-in, in-home and depot offerings or fulfillment by means of a new product, gift card or co-pay voucher delivered to the customer help maximize customer satisfaction.

Excellence in customer service is not an idle commitment so it's also important the provider shows how they successfully track, record and evaluate customer satisfaction to ensure they are meeting service level commitments. Another aspect to consider is how the administrator evaluates product reliability to continually develop competitive rates. Through comprehensive risk analysis, the provider can structure the extended warranty program in the most cost-effective way for the consumer yet profitable for the retailer.

While there are several factors a retailer needs to consider when choosing an extended service plan program, often the easiest and most profitable is working with a single-source provider for administering and underwriting the program. By selecting a full-service provider, you also have the benefit of flexibility in plans, categories, features and benefits to fit your needs and, more specifically, your customers' needs. While the fine print can be a bit overwhelming, selecting a single-source provider with proven credentials can help enhance revenues and build customer loyalty.

Article Resource:- https://warrantech.com/blog/december-2014/extended-service-plans-what%E2%80%99s-behind-all-the-fine/

To know more click link:- https://www.encompassparts.com/warrantech/

December 24, 2015 05:08

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Tips For Buying A Vehicle Service Contract

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.

Article Resource:- https://warrantech.com/blog/december-2014/tips-for-buying-a-vehicle-service-contract/

To nknow more click link:- https://twitter.com/warrantech_corp

December 21, 2015 02:40

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

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.

Article Resource:- https://warrantech.com/blog/december-2014/how-well-do-you-know-your-service-plan-warranty-ad/

To know more click link:- https://warrantech.wordpress.com/

December 17, 2015 04:04

Blogger

Branding of Product Protection Programs

A recent trend in the service contract industry is the emergence of administrators attempting to create a strong brand identity with consumers. Many administrators are working diligently to create brand recognition for their organizations by branding the protection offerings they sell through retail partners. The question is often asked, "Is this new approach in the best interest of the retailers?"

AMT Warranty and its subsidiary Warrantech's view is that the recent "brand building" business models employed by many administrators in the industry serve only to benefit the administrators and not their retail partners. This belief is derived from our core philosophy about the purpose of service contract programs. It's indisputable that service contract programs should provide important incremental revenue for retailers. However, our view is that a well-designed and maintained service contract program should drive customer loyalty and retention for the retailers selling the service contracts.

We view each service contract claim as an opportunity to enhance the trust between a customer and our retail partner who sold the underlying product and associated service contract. Product failures happen. When they do, customers feel a level of frustration. While it's true that the retailer is generally not the manufacturer of the product, customers often associate the product issue with the retailer who sold it to them. We believe that the solution to the product failure is best provided through a retailer-branded service contract in order to reestablish the trust that may have been diminished by the product failure. As a result of the service contract, retailers (through their administrator) are given the opportunity to engage in a highly personalized marketing campaign with a customer who at that moment may be their biggest detractor. We view this as micromarketing with macro effects.

In the emerging administrator-centric model, the solution is provided to the customer under the administrator's brand. The positive customer interaction and goodwill generated from resolving the customer's issue serves only to enhance the value of the provider's brand. That goodwill is retained by the provider, even after their relationship with the provider has ended. Even more problematic is that the administrator may also be marketing service contracts directly to consumers, including the customers of their retail partners. In essence, by agreeing to market service contracts under the administrator's brand, retailers could be promoting a competitor's offering to their customers. Moreover, the retailer has established a new relationship between their customers and a potential competitor. We feel that the resulting consequences for permitting administrator-branded service contract programs will have long-term financial implications for retailers as the strength of their administrator's brands increase in the eyes of the retailers' customers.

While the desire of administrators to build their own brand value is understandable, retailers should be wary of the consequences.

Article Resource:- https://warrantech.com/blog/january-2015/branding-of-product-protection-programs/

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December 15, 2015 03:01

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When Is An Extended Service Plan Worth The Investment?

You did it. You finally worked up the gumption to buy the one product you’ve debated purchasing for months. Whether it is a brand new car, technologically advanced appliance or the latest electronic gadget, you’ve made it through second guesses, financial calculations and a lengthy checkout line to finally make your purchase. Relieved and excited, you smile as the sales associate rings up your coveted item.

As you daydream about how wonderful life will be with your new “toy,” you realize the sales associate asked you a question. You beg their pardon.

“I asked what sort of protection plan you’d like. We have a number of extended warranty options,” the associate replies.

Your smile fades. Apparently the decision making isn’t quite over after all.

*****

Does this sound familiar? For many people, the question of whether or not to purchase an extended warranty (more appropriately referred to as an extended service plan, or ESP)* is a tough one, and may not be a decision they are prepared to make. When is such a purchase advisable? Will it save money, or just add cost to a purchase? The answers to these questions depend upon a number of factors specific to each purchase. Consider the following before you reach the point-of-sale in the future, and you may save time and avoid stress:

*NOTE: While many store associates and consumers consider the purchase to be an extended warranty, this is often not the case. Many extended plans are not truly adding on to the original manufacturer’s warranty, but rather, extend the post-warranty service options and are therefore more appropriately referred to as an extended service plan, or ESP.

What is the product and who produced it?

Reputation is always an important consideration when attempting to predict the longevity of a product. Some types of items are statistically more likely than others to need repairs in their first few years of use. According to Consumer Reports, for example, computers, self-powered lawn mowers and certain refrigerator designs top the list of items most likely to fail.

It is important, also, to consider whether the product you’re buying incorporates cutting-edge technology or is a first-generation product. With less of these products existing in the marketplace, there is a higher likelihood of glitches or problems that may not have been discovered during testing. Also, factor in what company created the product you are purchasing. Do they have a history of releasing products before the “bugs” have been worked out?

How much does the product cost and how tough would it be to replace?

If purchasing an expensive item, it is important to consider how much repairs or replacement would cost versus the cost of an ESP. If the item is of critical importance to you, such as a computer used to make a living, an expensive part failure could be very detrimental.

“For many people, peace of mind is the greatest benefit of an extended service plan,” according to Sean Stapleton, CEO of Warrantech. “They want to know that if their product should cease to function correctly, they will be covered, especially if replacement would be difficult to finance.”

Who is this product for and how will they handle it?

It is important to consider who will be using the product you’re purchasing, the environment in which it will reside, and the frequency it will be used. Are you buying a product for a young person? Is the item for use while on-the-go? Will you use the product routinely? If the answer to any of these questions is “yes,” you may want the confidence and protection that the product will last. Knowing your end user and end-use environment is important when deciding whether to invest in an extended service plan. Always review plan information carefully, ensuring you know exactly what is and isn’t covered.

The next time you make a significant investment in a product, ask yourself these three questions and be prepared once you get to the point-of-purchase.

Article Resource:- https://warrantech.com/blog/december-2015/when-is-an-extended-service-plan-worth-the-investm/

To know more click link:- https://www.encompassparts.com/warrantech/

December 7, 2015 05:41

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Warrantech Named As A Finalist In The 2015 Stevie Awards For Sales & Customer Service

Warrantech was named as a finalist today in the Award for Innovation in Customer Service category in the 9th annual Stevie® Awards for Sales & Customer Service. This marks the third straight year that Warrantech has been recognized as a Stevie Award winner.

Based on the average scores of the 139 professionals worldwide who participated in the preliminary judging, Warrantech's Connected Protection program was cited for its ability to provide important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers. This newly designed vehicle protection plan provides repair and replacement benefits for mobile devices utilized in a connected vehicle, should such devices malfunction.

More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition — an increase of 27% over 2014.

Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.

More than 100 members of several specialized judging committees will determine the Gold, Silver and Bronze Stevie Award placements from among the finalists during final judging, which will take place January 26 - February 4.

"The Stevie Awards for Sales & Customer Service continues to be the fastest-growing of our international awards programs," said Michael Gallagher, president and founder of the Stevie Awards. "The sheer number of nominations is matched by the increasing quality of those nominations. We congratulate all of this year’s finalists and wish them well in the next phase of judging."

The final results will be announced during a gala banquet on Friday, February 27 at the Bellagio Hotel in Las Vegas, Nevada. Finalists from the U.S.A. and several other nations are expected to attend.

Article Resource:- https://warrantech.com/blog/january-2015/warrantech-named-as-a-finalist-in-the-2015-stevie/
To know more click link :- https://www.encompassparts.com/warrantech/

December 2, 2015 04:49

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AmTrust Reports Outstanding Fourth Quarter And Year-End Results For 2014

AmTrust Financial Services (AFSI), the parent company of Warrantech, issued strong fourth quarter and year-end earnings today with significant momentum for 2015.

For the fourth quarter, the company’s earnings per share (EPS) beat the $1.20 EPS street estimate by $0.26. Gross written premium (GWP) for 2014 was $1.46 billion, up 38% from the same period last year. Small Commercial Business contributed 49% of total company GWP in 2014 and grew by 81% from 2013 to 2014.

On a profitability basis for 2014, the company is running at a loss ratio of 66.4% and an expense ratio just over 24%. Precisely, AFSI’s year-end combined ratio was 90.7%, up only 0.2% points from last year.

Lastly, the company booked $101.7 million in service and fee income in Q4, up 9.4% from the same time period last year. Most of that income was contributed by AMT Warranty/Warrantech, AMT Consumer Services, CNH Capital and Car Care Plan (the company’s overseas vehicle service contract operation).

A summary of Q4 results is listed below, and the earnings release is linked below as well. Thanks to all of our employees and agents who contributed to these tremendous revenue and profitability results. Keep up the great work!

Fourth Quarter 2014

• Gross written premium of $1.46 billion, up 37.9%, and net earned premium of $908.2 million, up 28.4% from the fourth quarter 2013
• Operating diluted EPS of $1.46 ($0.12 attributable to gain on life settlements) compared to $1.24 ($0.03 attributable to gain on life settlements) in the fourth quarter 2013
• Annualized operating return on common equity of 27.7% and annualized return on common equity of 16.7%
• Service and fee income of $101.7 million, up 9.4% from the fourth quarter 2013
• Operating earnings of $118.5 million compared to $98.5 million from the fourth quarter 2013
• Net income attributable to common stockholders of $71.6 million compared to $64.7 million in the fourth quarter 2013
• Diluted EPS of $0.88 compared with $0.82 in the fourth quarter 2013
• Combined ratio of 90.8% compared to 89.9% in the fourth quarter 2013

Full Year 2014

• Gross written premium of $6.09 billion, up 47.9%, and net earned premium of $3.53 billion, up 55.6% over 2013
• Operating diluted EPS of $5.75 ($0.08 attributable to gain on life settlements) compared to $3.56 ($0.03 attributable to gain on life settlements) in 2013
• Operating return on common equity of 29.9% and return on common equity of 28.4%
• Service and fee income of $409.7 million, up 23.6% from 2013
• Operating earnings of $458.4 million compared to $278.2 million in 2013
• Net income attributable to common stockholders of $434.3 million compared to $278.2 million in 2013
• Diluted EPS of $5.45 compared with $3.56 in 2013
• Combined ratio of 90.7% compared to 90.5% in 2013
• Book value per common share of $22.34, up from $17.74 at December 31, 2013
• AmTrust’s stockholders’ equity was $2.04 billion as of December 31, 2014

Article Resource:- https://warrantech.com/blog/february-2015/amtrust-reports-outstanding-fourth-quarter-and-yea/

Click link to know more:- https://www.encompassparts.com/warrantech/

November 25, 2015 04:26

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Top 10 Ways To Improve ESP Attachment Rates On The Retail Floor

In the world of extended service plans (ESPs), extended warranties, or service and parts replacement programs, many consumers have become immune to the common tactics used to sell these programs. In fact, if your sales team is still selling the “what if” scenario to today’s ultra educated consumers, your store is losing out on valuable sales that help drive high-margin growth and revenue.

According to NBC News, extended warranties help fuel a booming $15 billion-a-year business; therefore, it’s imperative that retail sales personnel hone their sales approaches for “add on” sales such as ESPs. Through ongoing training and education, sales teams are better able to overcome “new” objections to these profitable plans and figure out which plan best suits the consumer’s need.

The below selling strategies are simple, but effective ways to help your sales team illustrate the value of ESPs and therefore convert more consumers:

Get consumers’ attention — By stating the obvious such as, “This product is covered under the manufacturer’s warranty for only one year,” you may pique the consumer’s interest enough to have him/her asking more about warranty coverage.
Listen to consumers’ answers — It seems simple, but often sales representatives get so busy pushing sales out the door, they don’t hear what consumers really want to know more about. If a representative addresses some of the comments consumers share during the sales process, then consumers may be more inclined to listen to sales talk about protection plans. Remember, always address consumers’ objections and point out how ESPs overcome the objection.
Give options — Often consumers may be more inclined to purchase extended coverage if they know they have options. This puts them in the driver’s seat to select the coverage that best suits their needs. For example, offer extended or standard warranty coverage and let them ask questions about the difference, which will lead to the sale of a plan that they believe in.
Stay positive — Much like in life, if you focus on the positives, you’ll more likely receive favorable feedback. Focusing on the strong features and benefits of the ESP, consumers may find the up front fee is well worth the investment.
Expert source — Provide consumers with sales representatives’ credentials or the training they receive prior to selling on the floor. (This is most effective if the store posts signs on the floor about the quality of its staff.) In doing so, when a sales member states, “In my experience, ESPs are essential,” the consumer has a frame of reference for why this is a quantifiable statement. Testimonials are another great way to communicate value and benefits (leverage your personal experiences, your customer, your store’s customer, etc.).
Brands that matter — We’ve all fallen victim to the brand game at one point in our lives and consumers are no different. Consumers generally buy the brands they think represent quality or status and frown upon unknown brands. But while some brands make a great washing machine, they may not make a great TV and it shows in the manufacturer warranty details (especially parts and labor). Your staff needs to know the details of the manufacturer warranties just as well as the ESP to help drive home the value extended coverage offers.
Explain the fine print — Helping consumers better understand what’s covered, what’s not and why makes your sales staff their ally. This type of dialogue not only builds trust, but also gives sales staff an opportunity to reveal some of the holes in the manufacturer’s warranty.
Think about it — Once consumers have all the facts about the warranties or ESPs, it’s okay to let them think about their options. Have them walk around the store, talk to their spouse/significant other or speak with customer service representatives about the items they see coming back or how much it costs to repair various products. Often, a different source can be a welcomed change of pace for consumers who don’t want to fall victim to “sales hype.”
Recommend it — If you believe in it, your customers will too. Familiarize yourself with the features and benefits and remind customers how costly repairs or replacements can be if they’re not backed by an ESP.
Ask “why not” an ESP — Sometimes the most obvious questions go unasked such as “Why wouldn’t you want to protect your purchase?” or, “What’s holding you back?” Once your sales staff knows the answer to why, they may be able to employ any number of sales tactics to sell or attach an ESP

ESPs add significantly to a retail organization’s bottom line because they don’t require inventory space or carrying costs and they offer high margins. Many consumers are receptive to buying ESPs, but they do need to be convinced to add a plan to their basket and are looking to your sales staff to communicate the features and benefits of the plans, as well as your organization’s commitment behind the plans. Sharpening your sales strategies — on and off the sales floor — is a critical step to increasing ESP sales and enhancing the value these plans bring to consumers.

Article Resource:- https://warrantech.com/blog/november-2015/top-10-ways-to-improve-esp-attachment-rates-on-the/

To know more click link:- https://www.encompassparts.com/warrantech/

November 23, 2015 03:34

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Warrantech Wins Gold at the 2015 Stevie Awards for Sales & Customer Service

LAS VEGAS, Nevada (Feb. 28, 2015) – Warrantech was presented with a Gold Stevie^® Award for Innovation in Sales during the ninth annual Stevie Awards for Sales & Customer Service. The awards were presented to honorees during a gala banquet on Friday, February 28, at the Bellagio in Las Vegas. More than 500 executives from the U.S.A. and several other nations attended.

The Stevie Awards for Sales & Customer Service are the world’s top sales awards, business development awards, contact center awards, and customer service awards. The Stevie Awards organizes several of the world’s leading business awards shows including the prestigious American Business Awards^SM and International Business Awards^SM.

More than 1,900 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition, an increase of 27% over 2014. Finalists were determined by the average scores of 139 professionals worldwide, acting as preliminary judges. Entries were considered in 54 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Customer Service Department of the Year; 50 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers. The Business Development categories are new for 2015.

More than 100 members of several specialized judging committees determined the Gold, Silver and Bronze Stevie Award placements from among the Finalists during final judging earlier this month.

Warrantech was recognized for its Connected Protection program, which provides repair and replacement benefits for mobile devices utilized in a connected vehicle should such devices malfunction. Available through automobile dealers, the protection plan can be added to the vehicle financing, thereby costing pennies per day for extensive coverage. Enhancing Warrantech’s product portfolio, the new offering also provides important benefits to connected vehicle owners and much-needed additional revenue sources for auto dealers.

“Entries to the Stevie Awards for Sales & Customer Service awards have more than doubled over the past three years,” said Michael Gallagher, president and founder of the Stevie Awards. “The widespread support of this program illustrates the importance of the functions it recognizes to business success. This year’s Stevie Award winners are the highest rated in the history of the awards, and we congratulate all of the winners on their commitment to excellence and innovation.”

Details about the Stevie Awards for Sales & Customer Service and the list of Stevie winners in all categories are available at www.StevieAwards.com/sales.

Warrantech administers and markets service contracts and after-market warranties on automobiles, automotive components, recreational vehicles, appliances, consumer electronics, computers and computer peripherals for retailers, distributors and manufacturers. Warrantech ESPs are underwritten by sister company AmTrust Group insurance carriers, rated “A” (Excellent) by A.M. Best Company for their financial strength and stability.

Article Resource:- https://warrantech.com/blog/march-2015/warrantech-wins-gold-at-the-2015-stevie-awards-for/

For more information visit:- https://www.encompassparts.com/warrantech/