With just a few pieces of data, this tool calculates a rate for a service contract or limited warranty using a typical industry model. The rate development tool is available online at Warranty Resources.
Personal Safeguards Group (PSG) receives a significant number of requests from insurance agents and brokers, manufacturers, and retailers seeking assistance with how to calculate a rate for a service contract or limited warranty.
As more companies look at building internal service contract programs, or options for how to enhance their differentiation through a longer limited warranty, several items need to be addressed, including how to develop an approach to the cost of the program through a third party or in-house.
To help assist companies PSG has published a rate development tool. The process is simple and only requires a few pieces of data to generate a sample rate.
Additional tools, process flows, and resources will continue to be published to help organizations understand the process to build and price a service contract program so consider bookmarking the page.