Archived Copies of Warranty Week

December 2002 to Today

Warranty Snapshots of the Top 100 Providers: So far this year, claims are down significantly and accruals are down by significantly more. But warranted product sales are down by only -7%, which for a pandemic is not terrible. And because of the interplay between those metrics, warranty expense rates are down only slightly overall.
December 10, 2020
Top 100 Warranty Providers of Mid-2020: As we detailed in last week's newsletter, sales are falling faster than warranty expenses, so the average claims and accrual rates are rising. But that's just the average. Some companies are actually seeing sales increases, and for others so are their warranty costs. This week, we rank those changes, and spotlight the ten biggest percentage increases and decreases.
October 8, 2020
Top 100 Warranty Providers of 2019: Though the very largest manufacturers and warranty providers rarely report massive changes in their warranty metrics from one year to the next, at least a few of the mid-sized companies always seem to report cutting their claims and accrual expenses in half. And 2019 is no exception, with major warranty cost reductions reported by several manufacturers.
April 9, 2020
Computer Industry Warranty Report: Though the totals and averages are declining, we can't be sure it isn't caused primarily by all the companies going private or getting acquired by non-reporting parents, and thereby dropping from the list of warranty expense report providers.
May 2, 2019
Top 100 Warranty Providers of 2017: While total claims and accruals fell last year, some companies saw their warranty costs soar. By comparing each company to itself over time, we can spot the most and least improved warranty providers. And we can also spot the accounting eccentricities of those few that act like nobody's watching.
March 15, 2018
US Automaker Warranty Report: GM takes the lead as its warranty cost per vehicle dips below $300, allowing it to take a whopping $1.3 billion out of its reserve fund. Ford remains steady while Tesla still has unusually high warranty expenses. And GM is now third on the list of top warranty providers based in the U.S.
March 8, 2018
The 80/20 Rule of Product Warranties: Almost 80% of all the warranty claims and accruals reported by U.S.-based companies come from only 20 companies. Upwards of 500 other manufacturers account for only 20% of the total. But the expenses of the largest warranty providers are also a higher share of their sales revenue.
November 16, 2017
Apple's Warranties & Service Contracts: Although it is one of the world's largest warranty providers and extended warranty administrators, both programs used to be even larger. Using figures from Apple's just-published annual report, we estimate the size of each.
November 9, 2017
Cybersecurity Law: Legal experts say New York-registered service contract providers must take immediate action to comply with the state's new Cybersecurity Regulation before the looming deadline at the end of next month, and before the state's regulators levy heavy fines and penalties to send a message to the industry.
July 13, 2017
Top 100 Warranty Providers of 2016: While we can't directly compare the warranty expenses of companies to each other, we can compare a company to itself over time, and can then make comparisons based on the rate of change. In doing so, we can spot the companies cutting their warranty expense rates significantly, as well as those whose warranty costs are beginning to spin out of control.
March 16, 2017
Apple's Warranties & Service Contracts: Not only has the company grown into one of the world's largest product warranty providers, but it's also running one of the world's largest extended warranty programs. However, while iPhone sales were down by 12% in 2016, iPhone protection plan sales were down by even more. Is it the competition? Or are consumers buying fewer iPhone extended warranties from Apple?
December 15, 2016
Service Contract Pricing: Digital Cameras: Some service contract providers charge more than half the price of an inexpensive camera to protect it from drops and spills. Others charge less than the sales tax for service contracts that cover cameras selling for multiple thousands of dollars. There seems to be much less consistency in the pricing strategies for digital camera protection plans than there is for the products themselves.
October 20, 2016
New Warranty Providers: Before warranty management became a major undertaking in recent years, we suspect that even some large manufacturers didn't do a very good job of keeping their warranty expenses stable and steady. They learned on the job, without the benefit of metrics or industry benchmarks. But they did so without any outsiders able to see the numbers, a luxury that new manufacturers don't enjoy.
June 16, 2016
Top 100 Warranty Providers of 2015: Most of the major warranty providers have published their annual reports in the past few weeks. By comparing their most recent warranty claims, accrual, and reserve metrics against the same expense figures from a year ago, we can make a series of top 10 lists of the most improved and the most injured warranty providers.
March 17, 2016
FAST Act Lightens Delivery of Privacy Notices Burden for Service Contract Industry: Service contract providers, already entangled by a web of state and federal insurance laws, must now navigate the ramifications of new privacy regulations. But if they call themselves financial institutions and follow some other rules, they could also free themselves of the need to send out annual privacy notices to their customers.
January 14, 2016
Apple's Warranty & AppleCare Programs: Not only has the company grown into one of the world's largest product warranty providers, but it's also running one of the world's largest extended warranty programs. And smartphones are one of the hottest product categories for protection plans.
December 10, 2015
Top Warranty Acquisitions: Every once in a while, a manufacturer or retailer is acquired and ceases reporting its warranty expenses, while the acquiring company reports the amount of warranty reserves it gained through the purchase. What follows are some of the largest transactions of and by U.S.-based warranty providers in the past 18 months.
November 12, 2015
Top 100 Warranty Providers of 2014: While we can't directly compare one company's warranty expenses to another's, we can compare each company to itself over time, and then compare the magnitude of the changes. What follows is a list of the manufacturers that have raised or lowered their warranty expense rates the most from 2013 to 2014.
March 12, 2015
Top Warranty Expense Reductions: Using a list of just the top 200 warranty providers, we found one company whose warranty managers have cut costs by a billion a year within a decade, two more that cut hundreds of millions a year, and five that cut tens of millions a year from their employers' annual claims cost. And there were 16 more that deserved honorable mentions for their efforts.
January 15, 2015
European Manufacturers' Warranties: While most international manufacturers don't disclose their warranty costs, some of the largest European warranty providers do. And their warranty expense rates aren't tremendously different from those of their American competitors.
August 7, 2014
Solar Power Equipment Warranties: First Solar and SunPower have emerged as major warranty providers, building megawatt power plants in the desert. And Tesla Motors, while not solar powered, has emerged as a major warranty provider in the "green" energy industry. They're still not as big as GE or GM, but they're no longer small either.
June 12, 2014
Warranty Expense Reductions: As the year comes to a close, we take a look at which of the largest warranty providers has achieved the largest expense rate reductions in the past 12 months. But in order to compare companies against each other, first we have to compare each company to itself over time.
December 19, 2013
Mobile Phone Insurance: While most service contract providers have been able to expand service contracts to cover certain types of damage, only the wireless carriers have been able to bundle insurance policies that cover loss and theft with service contracts that cover defects and malfunctions.
October 31, 2013
Top 100 Warranty Providers of 2012: While most of the largest manufacturers continued to reduce their warranty costs last year, some saw dramatic increases. Here are the top up and down percentage changes of the year for three warranty metrics: claims, accruals, and reserves.
March 14, 2013
Warranty Week 10th Anniversary: Over the past decade, as warranty professionals began to pay more attention to warranty chain management, a publication was launched that paid attention to them. And warranties have never mattered more, or cost their providers less.
December 20, 2012
Warranty Software Report: IDC Manufacturing Insights has documented the spectrum of claims processing tools available to warranty providers and extended warranty administrators. And like it did in March with its warranty analytics vendor assessment, the crew once again looked at each company's current capabilities, target customers, industries served, and future strategies.
July 26, 2012
Warranty Analytics Study: IDC has profiled nine of the top providers of warranty analysis software and services, ranking them on both capabilities and marketing strategies. And while SAS gets the highest score, the companies closest behind them are somewhat unexpected.
June 7, 2012
Top 100 Warranty Providers of 2011: While most of the largest manufacturers continued to reduce their warranty costs last year, some saw dramatic rises. Here are the top percentage increases and decreases of the year for claims, accruals, and reserves.
March 15, 2012
Top 100 Warranty Providers: While most manufacturers keep cutting their warranty costs, some report massive spikes in their claims and accrual rates for the year ended in September. Others continue to recover from past spikes, with some of the largest declines of the year.
December 29, 2011
WCM Conference, Part Three: The future of the consumer electronics industry was the subject of a panel discussion that brought together retailers, manufacturers, repair service providers, insurance underwriters and extended service contract administrators to talk about everything from OnStar to iPhone.
March 24, 2011
Top 100 Warranty Providers of 2010: The biggest warranty providers also seem to be the most stable. Those that saw the greatest annual changes in warranty claims, accruals or reserves tended to be a bit smaller, whether the changes were up or down.
March 18, 2011
Computer Warranty
Claims & Accruals: No news is good news as the computer industry's top warranty providers turn in predictable warranty expense reports. Despite economic turmoil, new product launches and multiple recent acquisitions, claims and accrual rates just aren't changing much.
September 16, 2010
Top 100 Warranty Providers of 2009: By comparing companies to themselves over time, we're able to identify those with the biggest changes in claims and accrual rates. And while change is good, too much change may not be. Appearances on multiple top 10 lists can imply instability or an unfamiliarity with the warranty process.
April 1, 2010
Automotive Warranties: With GM now government-owned and several mobile home makers trapped in bankruptcy, industry-wide warranty statistics are losing their meaning. And thanks to the distortions caused by massive sales declines this year, claims rates have also lost much of their relevance during this recession. But among at least the well-run warranty providers, accrual rates have remained proportional to sales rates and quality levels.
September 10, 2009
Top 100 Warranty Providers at Midyear: Was that the sound of the bottom of the recession? If so, financial data from the first half of 2009 provides a detailed record of how warranty providers reacted to a collapse in sales and a jump in claims. Though some of the largest warranty providers didn't make it, those that did are enjoying the benefits of recent claims processing automation projects and other cost-cutting efforts.
September 3, 2009
Warranty Service Providers: It's all mixed up. Retailers are selling products under their own brand names and manufacturers are selling their own service contracts. Bankruptcies have exposed how precarious product warranties can be, while insurance has demonstrated how extended warranties can survive even a liquidation. Perhaps it's time for OEMs to think about partnering with administrators and insurance companies?
June 4, 2009
Computer Warranty Trends: While other industries are seeing claim rates rise and accrual rates fall, warranty providers in the computer industry are seeing claims rise slightly and accruals rise a lot. And it's not so easy to blame those changes on sales declines, or to link them with quality increases.
March 26, 2009
Top 100 Warranty Providers of 2008: Of all the companies spending the most on warranty, none of the largest reported massive percentage changes in 2008, which confirms the stability of their warranty programs. But there were plenty of big changes in claims and accrual rates further down the list, some for the better and some for the worse.
March 13, 2009
Warranty Conference: Economic turmoil is likely to take its toll on WCM 2009 attendance, but those who can make it to Orlando next week will see a series of how-to presentations by some of the biggest warranty providers in the world. Legal and regulatory issues are also on the agenda, and yes, there will be a quiz at the end.
March 5, 2009
Warranty Cost Cutting: Among the top 100 warranty providers, more than half have reduced the percentage of sales they allocate to warranty costs in the past year. Some have cut their accrual rates by a third, a half, or even more. And many have also seen their claims rates fall, suggesting not only cost cutting but also quality improvements.
November 20, 2008
Top 100 Warranty Providers: Compared to a year ago, much has changed in terms of warranty claims, accruals, and reserves. Key ratios suggest that some companies are enjoying vastly reduced repair costs thanks to quality gains. However, for the largest manufacturers, the percentage of sales they spend on warranty hasn't changed much.
September 5, 2008
Worldwide Warranty Providers: With the attention of Americans turned towards long weekends at the beach, barbecues and mountain getaways, we turn our focus to ten well-known international brands that are among the few non-U.S.-based companies to reveal their warranty expenses.
July 3, 2008
Computer Warranty Providers: Like a dog that doesn't bark, what hasn't happened to the likes of Apple, Seagate, and other warranty providers in the computer industry is more remarkable than what did. Meanwhile, HP, Sun, IBM, 3Com and Cisco continue to slowly but surely reduce their warranty costs.
June 27, 2008
Top 100 Warranty Providers: Key ratios show how some manufacturers have made fairly radical changes in their warranty finances over the past year. But, like a dog that doesn't bark, what's remarkable is how few of the biggest warranty providers have seen relatively big increases or decreases since March 2007.
June 12, 2008
Top 100 Warranty Providers: Though total warranty claims were up only slightly in 2007, some manufacturers saw massive changes up or down. While we can't compare companies directly to each other, we can compare each company to itself. And we can measure those rates of change, detecting both improving and deteriorating warranty circumstances.
March 26, 2008
Warranty Analytics: The Warranty Chain Management Conference in San Diego next week will feature both a workshop on loss cost analytics aimed at extended warranty providers and a warranty analytics software enhancement aimed at engineers and quality managers.
February 28, 2008
Top 100 Warranty Providers: While manufacturers' warranty costs shouldn't be compared directly against one another, they can be compared against themselves over time. And when one looks at those with the biggest percentage increases and decreases, one sees the biggest warranty winners and losers of the past year.
January 10, 2008
Fulcrum Analytics: New software tools give warranty and service contract providers new insights into cost, revenue, and profitability. But those who use them won't talk about them, to preserve the competitive advantage these analytical tools give them.
October 10, 2007
Ten Worldwide Warranty Providers: It's holiday time in the U.S. this week, so we're taking the opportunity to present warranty data for ten global brands based in other countries. Despite the currency and accounting differences, many pay warranty claims at rates close to those turned in by their U.S.-based peers.
July 5, 2007
Warranty & the Law: Some laws that affect warranties go back decades. Others are just a few months old. At the recent WCM Conference, three lawyers provided some perspective on how they see these laws affecting both manufacturers and extended warranty providers who find themselves in court defending against a breach of warranty lawsuit.
March 27, 2007
Warranty Conference Exhibitors: In between all the keynote speeches and panel discussions in Tampa this week, WCM attendees will have an opportunity to take a look at the offerings of a diverse cross section of warranty software and service providers.
March 13, 2007
Product Warranty Spending: With most of the third quarter financial reports behind us, it's looking like warranty spending is up only slightly in 2006. But the changes at some of the top warranty providers are very large, in both dollar and percentage terms.
December 12, 2006
Warranty Stability:  Whether a company pays a little or a lot for warranty claims, the stability of the reserve fund should be preserved. But out of the top 100 warranty providers, only 24 seem to be doing it well, as measured by changes in some key ratios over time.
October 31, 2006
Top 100 Warranty Providers: In this midyear report, we look at who's up and who's down compared to a year ago. Driven by acquisitions and longer warranties, some companies are paying out more than ever before. But others have found ways to cut their outlays by big numbers.
September 26, 2006
Top 50 Warranty Providers: While most large manufacturers saw warranty claims rise in 2005, most also saw sales gains that helped relieve the pain. Even GM and Ford saw only modest upticks in the percentage of sales they pay in claims. And some such as Boeing saw claims plummet.
April 19, 2006
Semiconductor Warranties: In most industries, the consumer-facing brand name suffers most of the warranty cost, and their suppliers get off lightly. But with semiconductors, it's the production platform providers who are left holding the bag.
December 6, 2005
Top 50 Warranty Providers: While 20 saw declines in the percentage of revenue spent on warranty claims, all but 12 paid out more claims in dollars during the first half of 2005. Rising product sales made the difference.
August 30, 2005
Warranty Claims & Accruals: Ten quarters of data for the top ten U.S.-based warranty providers show just how variable and seasonal claims rates can be for some companies and how consistent they've been for others.
August 23, 2005
Top 50 Warranty Providers: Manufacturers spent more than $25 billion last year on warranty claims, but sales rose a bit faster, so claims as a percentage of revenue fell slightly. Most of the top 50, however, saw their claims rates fall more.
May 3, 2005
Product Warranty Providers: Gateway holds onto the title of most improved for 2003-2004, but almost three-quarters of the top 50 manufacturers are seeing their warranty claims rates decline year over year.
January 5, 2005
Integrated Warranties: Assurant Solutions, along with partner General Electric, has quietly built itself into one of the largest and most diversified extended warranty service providers.
December 14, 2004
Warranty Claims & Accruals: While some U.S. manufacturers are still preparing their latest financial statements, most of the largest warranty providers have already announced their second quarter claims and accruals. While some of the top 50 are spending more on warranty than a year ago, most are spending less, and a few are spending a lot less.
August 17, 2004
Warranty Claims: While some U.S. manufacturers are still preparing their latest financial statements, most of the largest warranty providers have already announced their first quarter claims and accruals. Half of the top 50 are spending more on warranty than a year ago while half are spending less.
May 18, 2004
Automotive Warranties: Ford and GM are not only the largest providers of automotive warranty. They're also paying a higher percentage of their revenue in claims than everyone but the makers of RVs and rider mowers.
April 13, 2004
Top 50 Warranty Providers: The data is in, and there are four new names on the list of companies with the largest warranty programs. American manufacturers reported more than $23.675 billion in warranty claims during 2003, a rate very close to $2 billion a month.
March 23, 2004
Warranty Claims: While hundreds of manufacturers have now filed financial reports detailing their warranty activity during the third quarter, it remains unclear why claims rose by more than five percent. Is it a seasonal fluctuation? Or is it proof that the recession is finally behind us? Here's a down payment on the answer, highlighting trends among the top 50 warranty providers.
December 8, 2003
Warranty Services: While most of the service providers in the warranty industry focus exclusively upon the sale and administration of extended service plans, a handful of intrepid companies have outsourced product warranty claims processing for manufacturers in the consumer electronics industry, where repairs can be performed by any of tens of thousands of service centers.
August 11, 2003
Don't TREAD On Me: Part 2: Service providers and software vendors assess the costs and benefits of TREAD Act compliance.
April 7, 2003