An extended warranty, sometimes called a service agreement, service contract or maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty available on a new item. The extended warranty may be offered by an insurer, a retailer or a manufacturer.
There are many types of goods that can be covered by extended warranty insurance including mobile phones, electrical products, motor vehicles and furniture.
Extended warranty insurance policies are often based on the principle of indemnity, whereby in the event of a valid claim, the insurer is obliged to put the consumer back in the position they were in prior to the loss or damage.
However, lack of visibility across the warranty management process and the absence of shared data related to warranty claims makes warranty insurance an attractive target for fraudsters and so unsurprisingly, warranty fraud is prevalent.
This report sheds light on the scale of warranty fraud and how organisations can minimise their exposure.
• Areas covered by warranty insurance.
• Five key areas of warranty fraud.
• The top five warranty management vulnerabilities.
• Sharing data to combat warranty fraud.