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The next generation warranty management solutions have been successful in delivering higher levels of customer satisfaction and returns. A report from IBM found that while the industry is flourishing with close to 20% OEMs and 14% suppliers having already integrated IoT technologies within their warranty management processes, there still lies a huge scope for warranty companies to make the transition and start driving new revenue streams.

Why data-driven warranty model makes more sense?

With access to reliable usage, diagnostic and trend data, warranty service providers, tire companies and multi-tier suppliers have been successful in improving diagnostics, minimizing risk, maximizing product uptime as well as managing end of life replacements. The solutions also prioritize claims, identify frauds and anomalies to extract hidden value.

Powered by AI and connected vehicle data, these technologies ensure a greater return on investment, reduced liability and improved aftermarket excellence for the businesses, while ensuring lowered warranty costs, increased convenience, peace of mind and optimal performance for the customers.

AI Enables Unique Value Propositions

  • Personalized & Unique Risks Cover

Fundamentally, vehicle warranties offer coverage against unexpected system failures and breakdowns that might hamper performance. With mobility data in the picture, component suppliers, maintenance and warranty service providers get the improved capability to determine how often the vehicle is used, for what purposes and under what conditions.

For instance, warranty providers could pre-empt policy renewal or offer certain users with extended coverage to compensate frequent malfunctions, based on driving nature as well as typical usage conditions.

This information, powered by telematics and connected vehicle data, enables warranty underwriters to craft more custom plans and leverage opportunities when the user’s warranty is close to expiration, or unideal usage leads to part failure or reduced efficiency.

  • Proactive Loss Prevention

Identifying potential problems with the user’s vehicle in advance and being able to provide relevant solutions to avert costly repairs or replacements is one of the biggest advantages of data-based warranty solutions.

The ability to predict repairs enables warranty service providers to not just offer solutions but also dispatch repair services or conduct replacements, before it’s too late.

AI-driven data and insights empower reverse logistical planning to support preventive maintenance in case of device failure, resulting in greater operational efficiency and smooth customer experience. The process further optimizes budgeting and preparation for relevant resources in alignment with expected outcomes, to match the level of ease and convenience that consumers expect.

  • Warranty-as-a-Service Model

Intelligent analysis of data from connected vehicles surely makes granular risk assessment and predictive maintenance efforts worthwhile. It also makes tracking those assessments over time easier.

Usage-based subscription models offer both warranty service providers and customers the unique opportunity to break away from traditional warranty business models. Rather than offering cover over a finite contract length, W-a-a-S allows for variability in risk as well as the capacity to offer continued protection, ongoing for as long as the customer wishes to consume the services.

The flexibility that comes with the model ensures that users no longer need to know the complexities of which parts are covered under warranty, or for how long, and enables a simple interface for communication, brand engagement and loyalty.

Making Advancements in Your Business Solutions Happen

CerebrumX brings the power of AI and connected vehicle data to enable contemporary extended warranty solutions that hold the power to reshape the automotive industry. With our proprietary and industry’s first AI-driven Augmented Deep Learning Platform (ADLP), we unleash the true power behind mobility data, collected from millions of vehicles over innumerable trips. This data not only lets you better understand mobility trends but also enables planning, underwriting and rolling-out comprehensive extended warranty services.

What’s more, our in-house consent management platform, CerebrumX Secure Consent, further simplifies your efforts to collect and manage driver consent with a white label app for complete transparency and data privacy. It’s GDPR and CCPA compliant, to purposefully support business innovation.


For more information regarding connected vehicle data and the evolving ecosystem around it, Contact us or reach out to our experts.