A new report from Colonnade Advisors details the significant interest among investors and consolidators in the vehicle service contract industry. The following is an excerpt from the appendix of the whitepaper, which provides an in-depth look at the trends and growth drivers behind this expanding market. 

Strong Macro Trends are Driving Acquisitions and Investments in the VSC Industry 

U.S. consumers spent an estimated $35 billion on VSCs in 2018. VSCs are typically marketed at three points in the life cycle of an automobile:

(i) at original sale (the new vehicle segment – extended warranties),
(ii) near or after expiration of factory warranty primarily via direct-to-consumer sales (the end-of-warranty segment) and
(iii) at resale (the used vehicle segment).

The VSC market benefits from high new and used car sales and increasing penetration rates. Consumers value VSCs as they have limited funds to pay for repair bills and they are owning vehicles longer. Dealerships focus on VSC sales to enhance margins. F&I products provide increasing incremental profitability and represent 25% of total dealership gross profit, compared to 15% in 2009. We expect these dynamics to continue.

The VSC market size has grown by 6.9% to $35 billion since Colonnade’s last whitepaper in August 2017. The growth is attributed to three trends:

1) the increase in attachment rates on new vehicle sales,
2) the increase in used car sales and
3) the increase in vehicles out of the OEM warranty period.

Retail Market for VSCs in 2018 Compared to 2017

New car sales ultimately drive sales in the VSC market. New car sales were 17.3 million units in 2018, a slight increase from 2017. However, VSC attachment rates, or the percent of new vehicles sold with a VSC, have increased significantly in the last year causing the new vehicle VSC market size to increase by 5.9% to $16.2 billion.

Used vehicle sales are at an all-time high level and are driving the purchase of VSCs. Older vehicles have typically outlived OEM warranties and have higher maintenance needs, factors that have a positive impact on consumer demand for VSCs. There has been an influx of late-model off-lease vehicles returning to dealers which are older, higher mileage and outside of the manufacturer’s warranty, thereby increasing the need for VSCs on used vehicle sales. Colonnade estimates that 42% of used vehicle sales through franchise dealerships and 20% of used vehicle sales through independent dealerships have a VSC attached. The estimated franchise attachment rate increased from prior Colonnade analyses based on surveys completed by Baker Tilly and NIADA.

The number of vehicles post-OEM warranty has increased to an estimated 87 million vehicles from 86 million in 2017. These vehicles were post OEM warranty and less than twelve years in service, the “sweet spot” for aftermarket VSCs. Year 2017 represents the fewest vehicles in the sweet spot in the last seven years, as a result of the low number of new vehicle sales during the recession. Our research indicates that longer vehicle life coupled with continued high levels of new car sales post-recession will generate a continued growing market for post-OEM sales of VSCs.

Increasing Number of Vehicles Off OEM Warranty

Of the 276 million vehicles on the road, 48% are eligible for a VSC. This group includes new vehicle sales, used vehicle sales and post-OEM warranty vehicles that are less than twelve years old.

Increasing Consumer Demand for VSCs 

Consumer demand for VSCs is increasing as the vehicles on the road are older and higher mileage vehicles have heightened maintenance needs. U.S. consumers are holding on to their cars for longer than ever, partially due to the higher quality of vehicles.

The average age of passenger vehicles on the road was 11.7 years at the end of 2017, up from 9.6 years in 2002. One of the reasons for the increase was the 40% drop in new vehicle sales in 2008 and 2009. The record number of new vehicles purchased in 2015 and 2016 will slow the rate of increase, resulting in an average estimated age of 11.8 years in 2020, according to IHS Automotive.

Length of Ownership

Vehicle owners are increasing their length of ownership. New vehicle buyers now own their vehicle for 6.6 years compared to an average of 4.3 years in 2006, according to IHS Automotive. Used vehicle buyers now own their vehicles for 5.5 years compared to an average of 3.3 years in 2006. This trend is due to longer loan terms and the higher quality of vehicles. By using longer-term loans, consumers can reduce monthly payments and afford more expensive vehicles. Over 85% of new vehicle and 53% of used vehicle purchases are financed, and six to ten-year loans are becoming more popular. As a result of the extended terms, borrowers are not in a net equity position until their fourth year and frequently beyond the manufacturer’s warranty. To increase a borrower’s ability to pay on loans, lenders include the value of F&I products in loan-to-value calculations as a borrower is more likely to stay current on a functioning car. These trends create the opportunity for higher VSC penetration.

The increasing number of older cars is creating more vehicles that need repairs and maintenance; repairs generally become more expensive as vehicles age. Many consumers are unable to afford repairs as the growth in costs is outpacing wage growth and 40% of Americans do not have $400 in emergency funds. These trends are driving demand for VSCs.

F&I Focus at Dealerships 

Despite improved auto sales, dealership margins remain under pressure, and F&I products provide meaningful incremental profitability. Dealerships have become more dependent on F&I products, as they represent 25% of total dealership gross profit compared to 15% in 2009. This trend will continue as dealership margins on vehicle sales may be squeezed in coming years. In addition to increasing vehicle sales margins, F&I products improve long-term profitability by enhancing customer loyalty and retention by setting the stage for repairs, routine servicing sales and subsequent car purchases at the dealership.

Growth in the number of older vehicles is a positive trend for aftermarket repairs. However, dealerships will face strong competition for these increased repair revenues. Longer periods of ownership take consumers farther away from the selling dealership service lane to less expensive non-dealership repair facilities. Dealers seek to counter this trend by selling VSCs and prepaid maintenance plans to increase the likelihood of drivers returning to the dealerships.

For more details about Warrantech feel free to visit: https://warrantech.com/blog/january-2019/colonnade-provides-insight-into-the-vsc-industry/

RB Sales & Leasing and 6th Gear Auto, both of Fort Worth, Texas, are now proud members of the NAIAD Certified Family. To celebrate, NAIAD held kickoff launches at both dealerships.

“It’s important to us to be here,” said Mike Sims, business development manager for program administrator Warrantech. “Not only to us as a whole, but to these dealerships as a client, as a partner of ours with TIADA and NIADA, and everything we do.”

Scott Lilja, NIADA’s senior vice president of member services, was also on hand to offer support and explain the benefits of partnering with NIADA. “We’ve been around for 73 years protecting dealers’ interests, putting together programs to help them get to that next level in terms of differentiation and quality, and trust and transparency with consumers. And that’s what the NIADA CPO program is really about.”

The NIADA Certified Pre-Owned Program offers high‐quality used vehicles backed by a powerful warranty with nationwide reach and by NIADA – a national association whose more than 15,000 members are dedicated to integrity and subscribe to a strict Code of Ethics.

For a vehicle to be considered “NIADA Certified,” it must undergo a 125-point inspection conducted by a licensed repair facility and be backed by a rigorous vehicle history report. Once all requirements have been met, dealers are then able to offer these vehicles to their customers along with a number of features and benefits:

• A CARFAX vehicle history report
• Special financing for qualified customers
• Flexible, fully customization warranty options
• Roadside assistance, towing, vehicle rental and lost key/lockout service

Offering these benefits is already paying big dividends for both dealerships. “My turnover is in the 40s now and that’s what I’m really proud of,” said Chris Johnson, owner of 6th Gear Auto Sales. “We’re selling cars faster, but more importantly, our systems, our procedures and our policies through Warrantech have helped us sell more cars through our training processes.”

“It adds value to what we’re doing here,” said Shane Collins, general manager for RLB Sales & Leasing. “It adds value to every vehicle we sell. We’ve already seen the uptick – we’re pacing 60 cars this month, last month we did 30 – so we’re excited. It’s going to be a long, happy journey.”

Article Source: https://warrantech.com/blog/november-2018/niada-partners-with-fort-worth-dealerships-to-offe/

All vehicles perform an important role in our daily life activities. Proper care and maintenance for every vehicle is needed, for that we need to spend a lot of money. Our vehicle is one of the most important assets we own. In other words it is a big investment for us. We all buy a vehicle with their manufacturer warranty. Generally the manufacturer’s warranty is for three years. That is why, finding a good extended car warranty is very necessary. Extended car warranty is a contract between the company and the car owner. It covers your car’s unexpected repairs within a certain time period and saves your money in the long run. In present times many companies provide extended car warranty. Always choose an extended warranty carefully and buy from a trustworthy company such as Warrantech. Here are some important tips that will help you to find the best extended car warranty for your vehicle.

1.     Compare different extended car warranty companies

Nowadays we can see that many companies provide extended car warranties. Thus, finding the best extended car warranty is very difficult. That is why;first you need to know what you should be looking for in your extended car warranty. After that you can search for the different companies that provide extended car warranty and compare their company plans, prices and offers. Choose the one that you find right.

2.     Read customer reviews and testimonials

Checking out customer reviews and testimonials is another way to find the best extended car warranty.  Read the reviews posted on the company’s website along with reviews posted on yellow pages, yelp or social media. This way you can get an idea of the customer experience that you can expect while conducting business with the extended warranty company. This small exercise of yours will help you to take the right decision.

3.     Need to know what coverage is included?

Before buying an extended car warranty you need to take time to read the inclusions and exclusions before you sign because all extended car warranties are not similar, their plans can be different.  Thus, it is important to know beforehand what coverage is included in your warranty. For example if you are concerned about the electrical system in a vehicle then you need to know if your extended car warranty is considering to cover electrical items or not. It is important for your satisfaction because some extended warranties do not cover scheduled maintenance.

4.     Do they cancel extended warranty after purchase?

There is another important thing to be considered when you buy extended warranty. Some warranties allows you to cancel a warranty if you are not satisfied with it and they offer you money back guarantee. Don’t buy extended car warranty if a company does not gives a money back guarantee if you are want to cancel it.  The time period to cancel a warranty and getting back money is almost 30 days.

5.     Transferable

Transferable is the best feature for any extended warranty. If you warranties are transferable then it is more beneficial for you because you can easily sell your automobile. By this the new car owner gets the used car with warranty and you can sell your car at overprices.

Extended car warranty is the best idea to save money because it covers your car for unexpected repairs. Always buy extended warranty from a trustworthy company because it provides you legally named extended service contracts with better coverage and saves you money.

A vehicle service contract (VSC) is a smart choice for customers interested in protecting themselves from the high costs of vehicle repair. You just need to make sure you know what you’re getting and what to expect in the event that the unexpected happens. Prior to purchasing or filing a claim, here are a few things to consider to ensure that there are no surprises down the road.

• Make Sure You Aren’t Currently Under Warranty – Check to see whether the coverage of your service contract overlaps with a manufacturer’s warranty. A vehicle service contract might not be right for you if you are already covered. However, if your warranty is about to expire or you are looking for supplemental coverage then purchasing a VSC makes a lot of sense.
• Know What Your Vehicle Service Contract Covers – Not all vehicle service contracts cover all repairs. Take time to read the inclusions and exclusions to be sure that you’re getting the coverage you want and know when coverage might be denied. For instance, if a contract states that only mechanical breakdowns will be covered, problems caused by normal wear and tear might be excluded.
• Be Aware Of The Length Of Your Coverage – It happens to the best of us. You think you’re covered, only to find out that your plan has already expired. Make sure your coverage is up to date. And if the service contract lasts longer than you expect to own the car, find out if it can be transferred when you sell the vehicle.
• Perform Regularly Scheduled Maintenance – Under the contract, you may have to follow all recommendations for routine maintenance, such as oil and spark plug changes. Failure to do so could void the contract. Find out if the contract prohibits you from performing routine maintenance yourself or from taking the car to an independent dealer for work. Also, be aware that unapproved modifications or installing wrong parts could void your service contract as well.
• Keep All Service Records And Receipts – Create a file to keep track of all the repairs that were performed on your vehicle and be sure to include all receipts. This will come in handy if you ever have to put your vehicle service contract to use. Your claim could be denied if you are unable to show that the vehicle was properly maintained.

For more details about Warrantech feel free to visit: https://warrantech.com/blog/september-2018/tips-to-avoid-issues-with-your-vehicle-service-con/

The Warrantech team understands the importance of a positive service experience. We see ourselves as an extension of our business partners on every call and every transaction we make. That’s why we provide our customer service team with the knowledge, training, skills, resources and environment needed to provide an exceptional service experience with every customer.

We also follow a few simple guidelines to maintain high customer satisfaction.

1. Strive To Be The Best
We continuously go out of our way to make sure the quality of service provided to all customers is first-rate. Our quality assurance team monitors all personnel on a daily basis and provides feedback on:

• Performance and professionalism
• Customer interaction
• Procedural adherence
• Claims adjudication
• System usage and documentation
• Call lengths

The Warrantech management team also works to identify strengths and weaknesses so that we can effectively manage our workforce and optimize service.

2. Create A Positive Experience
Our proactive approach creates a customer who is not only satisfied with the outcome of the transaction, but a customer who walks away from the encounter with a confident outlook on their extended service contract, and, most importantly, your business. Through continual training and monitoring, we are able to establish consistency in each interaction and deliver a positive customer experience.

3. Provide Value
Exceptional customer service starts on day one and is built into every service plan program we create. Our transparent approach to claims and loss data, as well as customer service metrics, ensures that Warrantech service plans are priced fairly and provide value to your consumers without being confusing, hard to use, or deceiving.

4. Deliver The Best Possible Solution 
Our flexible approach to service contracts allows us to work jointly with our business partners to ensure the service contract utilized for each program meets their specific needs. Our dedicated team takes time to evaluate your business objectives, determine program structure, and set up administration and support in a way that will help drive customer loyalty and provide the best service possible.

Article Source: https://warrantech.com/blog/august-2018/customer-commitment-%E2%80%93-how-our-service-aligns-with/

Award Recognizes Maryland Dealership’s Rapid Rise to Certified Pre-Owned Success

Krietz Auto, a dealership in Frederick, Md., run by Charlie and Kim Krietz and their sons, Charles and Cory, became the second winner in the award’s three-year history after Todd Hoagey of Auction Direct USA claimed the first two honors.

The award recognizes the quality of dealership operations, the vehicle certification process, the number of CPO vehicles sold and the dealer’s commitment to providing a better product and level of service to his customers and the community.

In accepting the award, Charlie Krietz, who founded Krietz Auto as an auto repair shop 35 years ago, choked up with emotion as he recalled his journey to success.

“The dream I had, the vision, going through the recession and the hardships we went through with the family … to be here today, among a lot of great people, is incredible,” he said. “We’ve had a lot of help. … but our hunger and desire to survive, the passion – it was there.”

When he had to pause to compose himself, Krietz apologized. “I’m a little passionate,” he explained.

While Krietz Auto has been in business 35 years and was Maryland’s nominee for the 2017 National Quality Dealer award, it was only a year and a half ago that Charles Krietz met with Mike Sims of NIADA CPO administrator Warrantech to discuss getting involved in the program.

“I got with my family and said, ‘I met a really good guy today, and I think this is going to be a really good thing for us,’” Charles Kreitz recalled. “Fast forward a year, and we’re standing here getting this award.”

Now Krietz Auto is among the top operations in NIADA CPO sales, at about 180 CPO units per month. The Krietzes certify 100 percent of their qualifying vehicle inventory and have made major investments in training their 50-member staff in CPO sales, marketing, digital merchandising and reward/recognition incentive programs.

As a result, the dealership has doubled its F&I gross margin per unit since launching CPO program.

Krietz Auto is also very involved in its community as a major contributor to local organizations and programs such as 4H scholarships, Toys for Tots and youth sports teams.

Charles Krietz invited his fellow independent dealers to get in on the CPO action.

“Hopefully, all you guys can learn all about the program,” he said. “It’s a really great program. Look into it — you’re not going to go wrong.”

Article Source: https://warrantech.com/blog/june-2018/krietz-auto-named-niada-cpo-dealer-of-the-year/

One day as he drove to work, Chris Johnson noticed there were so many dealerships along the road that it looked like one huge car lot.

“You could not tell where one began and the other finished,” said Johnson, owner of 6th Gear Auto Sales in Fort Worth, Texas.

Johnson, who had established his independent dealership in 2011, knew he had a better operation than most. He had grown up in the business and had been taught by his father, a successful dealer.

The problem was how to distinguish his operation as special among the two hundred used car operations within a five-mile radius of his store.

The more he thought about the competition the more he thought the best way to increase his business would be to broaden his base from the used car row of Fort Worth to the national market by way of the Internet.

The problem was, he found the same clutter on the web that he’d seen on the street around his physical lot.

The same problem of how to stand out among all the car lots trying to be heard also exists on eBay, Carfax or any other of the many automotive listing services.

As Johnson studied the problem it became clear that if he wanted to stand out, whether on the street or on the Internet, he was going to need a certified pre-owned product.

Johnson had built 6th Gear Auto Sales from the ground up. He wanted to see the business thrive and provide income for his family and his employees for a long time to come.

“I realized that without being able to advertise certified pre-owned, I would lose the 60 percent of the market that is currently looking for the comfort of a certification program,” he said. “Sixty percent is a large segment. Not all of them know exactly what certified is and what it means, but they know it is something special and they want it – or at least the option of having it.”

Johnson knew to take 6th Gear where he wanted it to go, he would have to find a certified pre-owned program his customers could afford. He also knew his options were limited as an independent dealer.

“There are not many national programs to choose from,” he said. “The factories have their programs but they are exclusive to franchises – and they’re way too expensive.”

Eventually, Johnson came across a program that was tailor-made for his operation – the NIADA Certified program.

“First off, it was a National Independent Automobile Dealers Association program,” he said. “Since I was already a member of the association, that made me feel confident.

“When I found out it was backed by Warrantech, the same people who handle General Motors CPO and Mazda’s and Bentley’s programs, I knew this would be the program for us.”

Johnson’s employees love the changes that have come out of becoming an NIADA CPO dealership.

“It has been a culture change for us,” finance manager John Frymire said. “People see the certified cars on the Internet and because there is a warranty protecting them, they don’t mind coming from a long way away to buy our cars.”

There has been a big change in the inventory because the cars are selling faster. Johnson said he had 90-  to 120-day turn of inventory before the CPO program – now he is at 47 days and is working toward turning his 70-car inventory in as little as 30 days as his operation becomes more known for having certified pre-owned inventory.

“The news is spreading like wildfire on both the Internet and in the community,” 6th Gear salesman Elvys Agreda said, “and that is good for business.”

Want to stand out from the background noise in the used car market? Just ask Chris Johnson how adding NIADA Certified Pre-Owned vehicles changed his business.

Article Source: https://warrantech.com/blog/june-2018/stand-out-from-the-background-noise/

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 was a little unsure about purchasing this accident plan for my new tablet. However, my tablet fell off an elliptical trainer and was trapped between the moving metal arms of the machine. It ended up bent into a semi-circle … somehow still working but definitely no longer reliable, and no longer fitting in its case. So I filed a claim. They exceeded my expectations in several ways:

1) I had never finished registering the product when I first received it. But they helped me finish the registration process a year late, which they totally could have declined to do.

2) They sent me a shipping label, and I put the broken tablet in the mail 3 days before my coverage period was up. I called and they assured me “we will see this repair through to completion even if it extends past the time of your insurance coverage, because you were covered when you made the claim.”

3) They needed replacement parts, and those took time. But both times when I called for an update, I was given great service and reliable times for expected repairs.

4) The item shipped earlier than expected, and when I got it back it looked brand new and works perfectly.

I am totally surprised to be saying this because my expectations were low, but I am 100% happy with my service experience. It was absolutely worth the money!

For more details about Warrantech you feel free to visit: https://warrantech.com/blog/may-2018/filing-a-claim-%E2%80%93-a-customer%E2%80%99s-perspective/

Did you know that you can offer your customers smartphone coverage through our company?

AmTrust Mobile Solutions is a suite of mobile device protection and support services that provide your consumers with the protection that they need. Economic and hassle-free, this coverage allows for the repair or replacement of damaged or lost mobile devices quickly and efficiently with one of two options:

1. If the damaged device is repairable, your consumers may have access to an authorized local service center for repairs while they wait.
2. If an authorized local service center is not available, we will send a replacement unit, on an expedited basis, from our state-of the-art fulfillment center following claim submission.

Easy Claims Processing

AmTrust Mobile Solutions’ domestically located claims center is staffed with specialists who provide prompt and professional assistance. Available seven days a week, the claims center can also be accessed online. Our family of industry-leading customer support service centers has processed more than $1 billion in claims and is accredited by the Better Business Bureau.

Fully Supported

AmTrust Mobile Solutions appreciates that point-of-sale materials are critical in promoting and disclosing the various aspects of a program. That’s why we offer a marketing staff to design private label marketing materials or provide you with our own branded promotional items. Plus, we maintain strict adherence to each client’s branding requirements and possess an in-depth understanding of the legal and compliance issues associated with insurance product marketing.

A Dependable Business Partner

Working with AmTrust Mobile Solutions is easy. Whether your business is big or small, we can offer a carrier-grade program to suit your unique needs and exceed your customers’ expectations. From initial on-boarding to ongoing customer service, we can deliver customized mobile device protection solutions, provide complete administrative support and tailor the program to your financial requirements.

For more details about Warrantech feel free to visit: https://warrantech.com/blog/february-2018/amtrust-mobile-solutions-%E2%80%93-covered-connected-con/

Purchasing a vehicle service contract can be a confusing and intimidating process. There’s a lot to consider and, in some cases, a lot of money involved. That’s why we’re here to help take the guesswork out of the decision-making process and make sure you get exactly what you’re looking for. It’s easy. All you have to do is remember the three C’s of service contracts – cost, coverage and commitment.

Cost
First, you’ll want to determine if the car is worth the added investment. Do you plan on putting a lot of miles on it? Does the particular make and model have a history of needing frequent repairs?

You’ll also want to keep in mind that just because a plan is cheaper, that doesn’t mean that it’s better. In some cases, a company might sell you a less expensive plan that doesn’t provide the same level of coverage. Look for a good service contract that can offer you exceptional long-term savings and value. A few things to consider in association with the cost of your plan include:

• 24-hour technical assistance and access to qualified service professionals
• Value-added extras such as discounts on hotels and restaurants, rental car benefits, locksmith services and 24-hour roadside assistance
• Paying in advance could save you money later at the time of service
• In some cases, a service plan can pay for itself in just one repair

Coverage
Next, consider the vehicle type and the best type of coverage for it. For instance, if you have a vehicle that you intend to keep for long time, you’ll want a plan that takes high mileage into account. At the opposite end of that spectrum, if you simply want to protect your vehicle’s appearance, a supplementary protection plan is probably in your best interest. Warrantech has several options you can choose from that encompass a wide variety of services:

• CustomEdge Plus – Provides you with the flexibility to pick your plan, length of coverage, miles of coverage and deductible
• RepairMaster Service Drive – Complete coverage for cars, trucks and SUVs
• MileEdge – Perfect for unpredictable, high-mileage vehicles, this plan covers costs associated with an automobile breakdown
• SecureEdge – Covers costs to repair or replace any breakdown of parts, except engine, turbocharger/supercharger, transmission, transfer case and drive axle components
• OwnerEdge – Offers powertrain vehicle protection
• PowerEdge – For motorcycles, scooters, ATVs, snowmobiles and other recreational vehicles
• CampersEdge – For motorhomes, travel trailers, fifth wheels, pop-ups and slide-ins

Commitment
Finally, keep in mind that as the owner of the service contract, you are responsible for fulfilling the terms and conditions outlined within. As such, you’ll want to:

• Read the contract paperwork carefully and make sure you understand the coverages and exclusions
• Follow all the manufacturer’s recommendations for routine maintenance. Failure to comply with these requirements could void the contract
• Register your plan online if the provider has a website page that allows you to do so
• Keep your contract paperwork, receipts, maintenance reports and contact numbers in a safe place where you can easily access them. This will make ownership and claim submission simple and easy

To learn more about our vehicle service contracts, visit warrantech.com

Article Source:https://warrantech.com/blog/january-2018/the-3-c%E2%80%99s-tips-for-purchasing-a-vehicle-service-c/

Infrastructure Scalability
One of the core strengths of AmTrust (Warrantech’s parent company), and a major reason why AmTrust was recently ranked as one of Fortune’s 100 Fastest Growing Companies, is the scalability of the our infrastructure. Rapid expansion capability is a hallmark of AmTrust and woven into the fabric of the company. Over the past 10 years, AmTrust has successfully integrated more than 2,700 new client programs and completed over 40 acquisitions.

Proficient Project Management
A skilled team of project managers effectively facilitates the integration process using proven methods to implement new programs and meld new companies into the Warrantech ecosystem. Each transaction poses unique program integration challenges, but our project managers collaborate with the various business teams to accomplish the desired results.

Built-in Expandability
Warrantech maintains facility space and IT resources solely for new programs and implementations. We have the ability to add significant resources to facilitate your business and can do so in a rapid manner.

Skilled Workforce
Warrantech is adept at quickly amassing its workforce to accommodate new programs. Our Dallas, Texas location affords us access to a dynamic and highly trained workforce. Coupled with robust systems and training programs, Warrantech ensures rapid deployment of new, skilled personnel.

Multiple Product Options
Warrantech maintains “off-the-shelf” products and programs for speed to market, but is equally adept at customizing programs specifically to meet each client’s needs. We are also able to work with each partner’s existing products, if desired.

Customer Service & Claims Adjudication
Warrantech firmly believes that service excellence is the cornerstone of any successful extended service contract program. The service standards and customer experience are mutually established with each of our clients during the implementation phase so that our service team can act as an extension of our clients.

Finance & Accounting
Warrantech has a sophisticated accounting structure and employs very experienced financial professionals. The organization uses the Oracle General Ledger System, which provides tools for effective management control and real-time visibility to financial results. Our accounting and financial statements are audited by the accounting firm of BDO USA, LLP. Relevant parent company financial information is filed as required with the Securities and Exchange Commission. Our program-specific reporting capabilities enhance the overall management and administration of a program by using standard, custom and ad hoc reports to drive strong decision making and provide full transparency. We are compliant with Sarbanes-Oxley and PCI and maintain our SSAE16 certification.

Marketing Development
Warrantech employs a full-time, dedicated service contract marketing team. We also leverage third-party expertise to ensure that we are constantly providing robust marketing materials and strategies for our clients. This team is well versed in coordinating with the internal departments of our clients to ensure that all marketing requirements and brand standards are maintained.

Missed Point of Sale/Renewal Marketing
We employ a direct marketing team to capture opportunities that were missed at the point of sale by targeting prospects through personalized mail, Internet and/or telemarketing campaigns—all designed in conjunction with our partners. This team also manages our renewal program, which offers customers extended coverage and flexible payment terms, while providing additional revenue and brand loyalty to our partners.

Training & Field Services
Depending on each client’s needs, our training staff has the ability to build a custom field support program focused on:

• Internal program training: to ensure all of the Warrantech individuals assigned to this program have a full understanding and expertise with your culture and philosophy, the products and systems, sales and marketing approach, and customer experience standards. This training would be required before any individual would be permitted to touch any part of your program.

• Retail store and management training: to provide customized training, best practices, information on the products and systems, and general sales development.

Visit warrantech.com or give us a call at 800.833.8801 to learn more about how we can best support your business.

It’s important to partner with a company that’s well-versed in your line of work. After all, every industry has a unique set of risks and differentiators. And if you’re a small business owner, having access to someone who is receptive to the specific, yet ever-changing needs of your business can make all the difference.

AmTrust, Warrantech’s parent company, places a deliberate focus on delivering quality programs and services to businesses in underserved niche markets. With a staff of business developers, underwriters and account managers who are experienced, dedicated and client-focused, they strive to develop strong partnerships to ensure that your business plans are expertly executed, fully licensed and well-designed for your particular industry.

Small Commercial Business
Specifically targeting small businesses, AmTrust has crafted its commercial package insurance offering to provide coverage for niche audiences such as: lumber, restaurants, automotive service centers, financial institutions, inland marine, commercial agriculture and much more.

By combining leading technology, proprietary online business submission software and a deep understanding of each market, AmTrust reduces risk, produces efficiencies and provides effective loss control for its clients. AmTrust services small businesses with the same concern and attention to detail expected by large businesses, treating policyholders with the individual attention that they deserve.

Specialty Program
At its core, the program business provides risk funding arrangements to a small group of targeted program business clients dedicated to the long-term proposition of shared risk and shared rewards. The risks to which these policyholders are exposed require in-depth knowledge of the industry segments in which they operate. Underwriting often entails customized coverage, loss control and claims services, as well as risk-sharing mechanisms. Underwriting expertise is the core competency of this specialized business unit.

AmTrust partners with MGAs and claims administrators to originate and manage this book of business. They target sophisticated small- and middle-market businesses, such as retail and wholesale operations, service operations and non-profit organizations. The coverages offered consist primarily of workers’ compensations, general liability, commercial auto liability and property insurance.

Specialty Risk and Extended Warranty
Warrantech’s extended warranty coverage focuses on automotive and consumer product clients, offering accidental damage, mechanical breakdown and related risks, while AmTrust’s specialty risk coverage targets the categories of consumer and commercial goods, auto, involuntary employment and travel/purchase benefits.

By serving as both underwriter and third-party administrator of our warranty programs, including our own full-service, state-of-the-art call center, we are uniquely positioned to simplify purchasing and help protect the integrity of our clients’ brands.

Contemplating a vehicle service contract, but unsure of how it works or how it differs from an automotive warranty? You’re not alone. A lot of consumers tend to get the two mixed up or fail to understand just what they cover. But seeing as how your vehicle is usually the second most important purchase you will make right after your home, it is in your best interest to do your homework and make sure that you are protected.

What exactly is a vehicle service contract?
It is an agreement to cover costs associated with repairs or services made to your vehicle. A manufacturer’s warranty, on the other hand, is a promise from the manufacturer to stand by their workmanship for a limited time after you purchase the vehicle. Once this warranty expires, a vehicle service contract becomes valid and provides you with much-needed coverage on your vehicle’s most important systems and components.

Is a vehicle service contract right for you?
Here are a few things to consider:

• Keep in mind that the average hourly rate for a mechanic is $100 an hour. A vehicle service contract can help do away with this cost, save you money and keep you from paying any unforeseen and unexpected repair bills.

• If you plan on owning your car for an extended period, it’s definitely in your best interest. A vehicle service contract can keep your car running at its very best and on the road for a long time.

• Even if you don’t intend to keep your car for long, a service contract can increase your vehicle’s resale value once you decide to sell. But before you do, make sure that the service contract you’re purchasing is transferable.

• Do some research into the make and model of the vehicle you plan on purchasing. Is it likely to need repairs and, if so, what are the costs? Weigh this against the price of the service contract to determine if it is worth it to you.

• Does the contract include extras such as discounts on hotels and restaurants, rental car benefits, locksmith services and 24-hour roadside assistance? Not only do these add to the value of the service contract, they can provide you with added peace of mind in the event that something goes wrong while you’re on the road and away from home.

• Take your driving habits into account. Will you be on the road a lot? Is there a lot of stop-and-go traffic? What are the road conditions like? Do you park outside where the weather is extreme? These can all have an adverse effect on your vehicle.

• Check the terms and conditions carefully. Make sure you know exactly what you’re getting and what is covered specifically.

• In addition to the type of coverage, be mindful of the length of coverage, miles of coverage and deductible.

• Research the company providing the service contract. Are they reputable? Some guidelines to help determine this might include checking their Better Business Bureau rating to see how they work with consumers and finding out what their A.M. Best rating is to verify financial strength and stability.

Have questions about a specific vehicle service contract?
Don’t hesitate to ask your salesperson or agent for more information. Most dealerships typically provide you with a brochure or direct you to a website so you can review the plan in its entirety. Take time to make sure that you fully understand the scope of the service contract and don’t get pressured into purchasing something that makes you feel uncomfortable. With so many options currently available, you are sure to find something that is satisfactory for your budget and your vehicle’s specific requirements.

For more details about Warrantech feel free to visit: https://www.linkedin.com/company/warrantech

Article Source: https://warrantech.com/blog/october-2017/why-you-need-a-vehicle-service-contract/

The eighth annual Extended Warranty & Service Contract Innovations Conference opens September 13 at the Renaissance Hotel in Nashville. Several hundred professionals from the extended warranty and service contract industry are headed to Nashville to talk about how changes in technology and regulations will impact their businesses in the years ahead.

Successful Partnerships

On Thursday morning, Sean Stapleton, the President and CEO of AMT Warranty, will join with Kenneth J. Mac, the Director of Chevrolet-Buick-GMC-Cadillac Protection at General Motors Co., to deliver a presentation on “Successful Partnerships in the OEM F&I Space.”

GM spun off its vehicle service contract, insurance, and finance business years ago into what is now known as Ally Financial Inc., but which used to be known as the General Motors Acceptance Corp. (GMAC). Then, of course, the great recession hit, and both GM and GMAC went through bankruptcy reorganizations. Afterwards, GM decided to re-enter the VSC business under its own name, and Mac’s Customer Care & Aftersales unit decided to do it in partnership with an outside insurance underwriter.

Stapleton said AMT won the bidding after an extensive vetting process. “The relationship with GM has been truly phenomenal,” he said. “We’ve been in business for many years now.” He said they started working together in 2014, after AMT Warranty won the bid in late 2013.

“The program has grown tremendously since then,” he said. “And it continues to grow. So I’m really proud of what AMT Warranty and GM have put together.” Their joint presentation in Nashville will explain how the relationship works, how they strive for continual improvement and innovation together, and what advice they can offer to others looking to create similar partnerships for their service contract programs.

“It’s a unique partnership in so many ways,” Stapleton said. “This isn’t a vendor relationship with them. We’re not order-takers. It’s very collaborative. We meet every Monday. We have our quarterly calls. We have update calls. We’re living and breathing and looking at the same things.”

Fear-Free Communications

Stapleton said he and Mac will outline some of the best practices that seem to work for them in their partnership, while acknowledging that things may be different for other partnerships. First, he said, the partners employ what he called “fear-free communications” between the two teams.

“We empower our teams to build these relationships amongst themselves,” he said. “They fight for each other. It’s almost like one organization. It doesn’t feel like finger-pointing. It feels like we win or lose together.”

The teams also are encouraged to ask a lot of questions, particularly around reasons why they’re doing something a particular way. “Some of those things are hard to discuss, whether it’s personal or professional, but we have that openness. And it’s been really beneficial.”

Stapleton said the partners started out in 2014 with just a handful of auto dealers selling their vehicle service contracts (most were still loyal to GMAC/Ally). Ally still had rights to the GM name. So the partners decided to sell Buick, Cadillac, and Chevrolet-branded VSCs, and gradually some of those dealers decided to come aboard.

“It was a huge challenge,” Stapleton said. “But it was also a pretty exciting time — to know that we were doing things differently, to do things that were intended to drive retention and loyalty. That’s one of the biggest differentiators I think that the program has.”

They also offered disappearing deductibles, and introduced a “white glove” level of service within the dealerships to boost loyalty and turn what could be a real negative (getting a defect repaired) into a real positive (cementing the relationship with a phenomenal experience).

“Issues create long-term relationships with these customers,” he said. “Their alternator may have blown. And that stinks. But they had a great experience. They were put into a loaner car. And there’s a disappearing deductible, so there’s no money out of pocket. It makes it a whole lot easier, and it builds that level of trust. Challenges can actually result in longer-term relationships with customers.”

GM could have done it alone, essentially remanufacturing GMAC all over again. But instead it decided to work with AMT. Stapleton said this allows the partners to share data about both the products and the risks, with each bringing their expertise to the table.

“We support other large OEM programs,” he said. “So we know what’s been successful, and we know what’s been a failure.” And it helps the partners to properly price the service contracts sold for not only for new GM vehicles, but also the used vehicles that dealers have on their lots. “We have a depth and breadth of understanding of this space that’s hard to compete with, because this is our core.”

AmTrust Financial Services, Inc. Strengthens Senior Management Team with Appointment of Ariel Gorelik as SVP and Chief Information Officer

AmTrust veteran Christopher Longo continues as Chief Operating Officer

NEW YORK, Aug. 16, 2017 (GLOBE NEWSWIRE) — AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the “Company” or “AmTrust”) today announced that Ariel Gorelik, an experienced global insurance industry executive and most recently Chief Operating Officer of AmTrust’s AMT Warranty division, has been appointed Senior Vice President and Chief Information Officer (CIO), reporting to Chairman and Chief Executive Officer Barry Zyskind. Mr. Gorelik succeeds Christopher Longo who continues as EVP and Chief Operating Officer, appointed in 2016, who has guided technology development at AmTrust as the Company’s CIO since 2006.

Mr. Gorelik will lead AmTrust’s global IT organization, with a focus on operational excellence across the IT function. He is responsible for ensuring that AmTrust will continue to lead through technology innovation and capitalizing on technology solutions to help enable AmTrust fulfill its business goals. Mr. Gorelik’s extensive operational leadership experience in the insurance sector includes expertise in centralization of operations and transformation of service delivery to improve customer satisfaction.

Mr. Gorelik joined AmTrust in 2014 as Senior Vice President AmTrust North America operations, and in January 2016 was promoted to Chief Operating Officer of AMT Warranty, one of the Company’s operating subsidiaries in the U.S. Prior to joining AmTrust, from 2013 to 2014, Mr. Gorelik was a managing consultant of the ICON division for Zurich North America, a property and casualty insurer. From 2010 to 2013, he served as deputy chief operating officer at SK Allianz/Allianz Group, a German property and casualty insurer. He was responsible for the procurement, real estate management, and transportation departments, as well as for areas of IT relating to Allianz’s core insurance system. He also led the organization’s full automation of the policy life cycle. Prior to his role as deputy COO, Mr. Gorelik served as head of Allianz Eurasia’s business services, where he established a shared service center with a number of back and middle office functions, including claims handling, P&C policy administration, payments, and call center.

“AmTrust has always led with technology and innovation, which have been a competitive differentiator for us,” said Barry Zyskind, Chairman and Chief Executive Officer. “Under Ariel Gorelik’s leadership as Chief Information Officer, we will continue to harness the power of our technology platforms and digital capabilities. Similarly, we now can maximize Chris Longo’s management focus as AmTrust’s Chief Operating Officer to enable us to undertake the initiatives and processes to optimize results across our business units and product and service offerings.”

Mr. Zyskind continued, “With more than 400 knowledge developers within our IT staff of 1,000 men and women supported by in-house underwriting, actuarial and claims processing experience, innovation is in our DNA. Chris has been instrumental in developing our technology platforms and building our IT organization into the powerhouse it is today. He led the development of a single proprietary platform that allows us to continually improve the experience of our agents and our customers. It also allows us to develop new products and integrate emerging technologies quickly. With our IT function well established, Ariel, as Chief Information Officer, can move us further forward, utilizing his abilities to increase efficiencies across broad organizations and platforms, while enhancing the experience of our brokers, agents, and policyholders.”

Customers want fast service or support from knowledgeable people where, when and how they prefer to receive it, based on results of a study the CMO Council published Tuesday.

Together with SAP Hybris, the CMO Council last year conducted an online survey of 2,000 respondents, equally divided between men and women. Fifty percent were in the United States, and 25 percent each resided in Canada and Europe.

Among the findings:

• 52 percent mentioned fast response time as a key attribute of an exceptional customer experience;
• 47 percent said knowledgeable staff, ready to assist whenever and wherever needed, was key;
• 38 percent wanted an actual person to speak with at any time and place;
• 38 percent wanted information when and where they needed it;
• 9 percent wanted brand-developed social communities; and
• 8 percent wanted always-on automated services.

Consumers have a shortlist of critical channels they expect to have access to, the survey found, including the company’s website, email, a phone number, and a knowledgeable person to speak with.

“The mindsets of consumers — whether B2B or B2C — are shifting, said Liz Miller, SVP of marketing at the CMO Council.

Marketers “have to start asking, ‘Are we set up to be a responsive organization that looks at data, looks at analytics, understands what’s coming in through CRM and is able to reflect that back through all touchpoints, including physical ones, quickly? Or are we simply waiting to react?'” she told CRM Buyer.

Serve Us Well or Die!

Angry customers hurt brands. The survey identified the following behaviors:

• 47 percent of respondents said they would stop doing business with a brand if they were continually frustrated;
• 33 percent were annoyed because of slow service or dealing with reps who knew nothing about their past history or purchases;
• 32 percent said they would email a company to complain; and
• 29 percent said they would tell their family and friends about their bad experience.

That’s a possibility that Warrantech, which provides extended service plans and warranties nationwide, is well aware of.

The company on Tuesday announced a partnership with mobile workforce management ServicePower, which will let it instantly connect customers who have service needs with available repair technicians.

“Prompt response time is critical in our line of business,” said Brian Weaver, director of service operations at Warrantech.

The teamup is expected to reduce overall customer turnover time by up to 10 percent across all verticals and “ultimately translate into commensurate lifts in clients’ sales and customer retention,” he told CRM Buyer.

The Customer Wish Conundrum

One problem marketers face is that customers appear to have conflicting desires, as shown by the survey results:

• 36 percent of respondents were angry about not being recognized for their loyalty;
• 12 percent wanted companies to recognize their history with the brand at any touchpoint;
• 10 percent wanted multiple touchpoints; and
• 23 percent felt they were being followed online.

That poses a conundrum for marketers.

“This survey did indicate the respondents wanted knowledgeable staff — and for that, I’d argue part of the knowledge is knowing about the customer, not just the product, so that the advice can directly address the customer’s unique problem,” said Rob Enderle, principal analyst at the Enderle Group.

“Knowing about the customer improves the quality of the engagement,” he told CRM Buyer.
That said, consumers don’t care how companies do what they do — they only care about the results, the CMO Council’s Miller noted.

“It’s a sausage factory. Consumers don’t care how you make them, they just want tasty sausage. At the end of the day, consumers want to be treated like persons,” she said.

“Each firm needs to survey their own customers, assess the impact and costs of changes, then formulate a strategy that applies uniquely to them,” Enderle suggested. “Some may find that the cost/benefit ratio is still better with automation.”

BEDFORD, Texas–(BUSINESS WIRE)–Warrantech, a leading national provider of extended service plans (ESPs) and warranties, announces a unique new offering that will improve the customer experience by reducing the amount of time it takes to service products.

Through a partnership with mobile workforce management platform ServicePower, Warrantech will now instantly connect customers who have service needs with available repair technicians. By using technology to schedule service appointments in real-time, Warrantech will dramatically reduce the average time it takes for repairs to be made to customer products.

Warrantech, a subsidiary of AmTrust Financial Services, Inc., provides innovative extended service plans, vehicle service contracts and warranty programs to retailers, dealers, distributors and manufacturers in numerous consumer and automotive markets.

ServicePower dispatches experienced third party contractors to repair product under contract through its contractor management solution, while improving warranty claim management through real time adjudication logic and collaborative business intelligence. Warrantech leverages improved visibility of each repair and real time data analysis to streamline and improve service operations.

“We are always looking to provide our large enterprise customers with an advantage in the competitive markets in which they operate,” said Ariel Gorelik, COO of Warrantech. “We believe this partnership with ServicePower will be positive for customers because it will make repairs quick and easy to schedule and we believe it’s positive for technicians because it eliminates the hassle of scheduling service times.”

“Warrantech operates in a complex industry serving many sectors and thousands of consumers,” said Marne Martin, CEO at ServicePower. “ServicePower prides itself on offering software solutions that minimize complexity, providing a real-time picture of field activities so that better-informed decisions can be made and executed to offer the best possible customer experience. That another project was delivered efficiently and on budget is further evidence to prospective customers that you can trust ServicePower to deliver.”

About Warrantech

Warrantech is a subsidiary of AmTrust Financial Services, a Fortune 500, multinational property and casualty holding company that is rated “A” (Excellent) by A.M. Best Company for their financial strength and stability. An innovative, technology-driven company, AmTrust brings its financial strength to Warrantech, enabling it to offer a unique, bundled approach that includes both underwriting and administration. This creates transparency and visibility to information that enables customers to change and create plans that are both highly customized and profitable.

About ServicePower

For companies providing field based services, ServicePower offers a field service and mobile workforce management platform facilitating hybrid workforce management, enabling organizations to save money, improve customer satisfaction and drive new revenue by efficiently managing both captive and 3rd party service providers. ServicePower uniquely combines customer entitlement and real time communications, schedule and route optimization, work order, asset and inventory management, service and maintenance contract management, contractor management and dispatch, warranty and claims management, field mobility, and business intelligence of all field service interactions, in a single solution.

ServicePower also offers a fully managed network of 3rd party service providers to enable rapid and high-quality on-demand “spill-over” servicing at peak times and in hard-to-reach locations across North America and the Europe.