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Report

The future of automotive insurance aftersales

Unlock the potential of extended warranty

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Drive your aftersales success with global insights and regional perspectives from Asia, Europe, and Latin America.

The automotive industry is undergoing a seismic shift. As the industry evolves, so too does the automotive extended warranty sector, which is projected to grow 30% between now and 2029 to reach US$43 billion. 

Our report, The future of automotive insurance aftersales, in partnership with the Open & Embedded Insurance Observatory, provides the latest trends impacting the automotive extended warranty sector, including electric batteries. We delve into the benefits of integrating digital solutions and artificial intelligence (AI) in the aftersales process. With actionable recommendations for manufacturers, dealers, and importers, we help you navigate the changing automotive insurance aftersales market.

Use this report to:

  • Enhance efficiency: Streamline sales journey and claims processing with AI-driven tools and digital solutions.
  • Increase customer satisfaction: Offer personalized warranty solutions that resonate with individual consumer needs.
  • Sustainability alignment: Integrate eco-friendly practices into your warranty programs to meet regulatory and consumer expectations.
  • Proactive maintenance: Use predictive analytics to anticipate customer needs and reduce downtime.
  • Competitive advantage: Stay ahead of regulatory changes and market trends with expert insights. 

The future of automotive insurance aftersales

Unlock the potential of extended warranty

Quote

"The future of automotive insurance aftersales lies in embracing digital technologies and personalized services while prioritizing sustainability. Those who adapt to these changes will not only enhance loyalty but also secure their position as leaders in a rapidly evolving market." 

Wayne Rees
Warranty Leader, International Affinity, Marsh

Download the report now and transform your aftersales strategy

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FAQs

What are the benefits of automotive extended warranty programs?

Extended warranty programs represent a significant revenue stream for manufacturers, dealers, leasing companies, financial institutions, and warranty providers. They enhance customer loyalty, encourage repeat business, and generate valuable data insights for improving products and services.

How is artificial intelligence impacting automotive insurance aftersales services? 

 Artificial intelligence is transforming automotive insurance aftersales by: 

  • Enhancing service delivery 
  • Improving customer experience 
  • Streamlining operations  

AI aids in fraud detection and risk assessment and reduces turnaround times for claims processing, benefiting customers and providers.

What is the impact of aftersales insurance services in the automotive industry?

Aftersales insurance services, including extended warranty, are crucial revenue generators for the automotive industry, often achieving profit margins exceeding 20% for dealers. These services help build long-term relationships with customers and are essential for maintaining competitiveness in the market.

Who should read this report?
  • Automotive manufacturers: Executives and product managers can use the report to understand market dynamics and the importance of aftersales insurance services in their business strategy. 
  • Automotive dealers/importers: Managers and sales teams can learn how extended warranties enhance customer loyalty and drive additional revenue. 
  • Warranty providers: Companies that offer extended warranties can benefit from the latest market trends, challenges, and growth opportunities. 
What is the projected growth for the global automotive extended warranty market? 

The automotive extended warranty market is projected to grow 30% from 2024 to reach US$43 billion by 2029. This growth is driven by increasing repair costs, greater consumer awareness, and the adoption of digital service platforms. 

What are the key factors insurers consider when covering battery warranties on electric vehicles?

Insurers take several factors into account when evaluating coverage for electric vehicle battery warranty, including: 

  1. Battery technology and lifespan: Insurers need to assess electric vehicle batteries' expected lifespan and performance degradation over time. Understanding the specific technologies used, such as lithium-ion and solid-state batteries, is essential. 
  2. Cost of replacement: Given the significant cost of replacing electric vehicle batteries, insurers will evaluate the average replacement costs and how they may vary by manufacturer and model. 
  3. Warranty coverage terms: Insurers will define the extended warranty's coverage, including aspects like battery capacity loss, defects, and any associated components (for example, charging systems). 
  4. Regulatory compliance: Insurers must be aware of regulations and standards governing electric vehicle warranties in different regions, as these can impact coverage requirements and consumer rights. 
  5. Efficient claims process: Insurers will assess how best to implement a streamlined and efficient claims process for battery-related issues to improve customer satisfaction and operational efficiency.