Dateline: 03/05/2001
New product to stabilize warranty administration costs, elevate customer service
SCHAUMBURG, IL, April 30, 2001 -- Zurich North America, a leading provider of insurance, financial and risk management solutions, is launching Warranty Solutions for Manufacturers, a highly-customized warranty product to help manufacturers stabilize their warranty administration costs and protect their balance sheets, the company announced today.
Zurich North America warranty specialists work with original equipment manufacturers (OEMs) to structure risk transfer solutions -- ranging from fully-insured programs to captive insurance strategies -- for manufacturers with warranty liabilities. Zurich absorbs the risk of the warranty, while helping optimize the OEM accounting, regulatory, insurance and financial consequences. The program covers virtually any product or component-based warranty.
"OEM warranties for free product service, replacement or repair must be carried forward on the manufacturer’s balance sheet, but it can be difficult to determine the costs of these open liabilities," said Jim Norman, business development manager, extended service programs. "With our ‘all-in-one’ risk transfer approach, Zurich brings predictability to warranty administration costs, which may help manufacturers minimize earnings volatility and strengthen their balance sheets. We recognize customers will look to their financial advisers to help determine where our product can benefit their business."
Warranty Solutions for Manufacturers can also provide warranty program administration, through GE-Zurich Warranty Management, Inc., a joint venture between Zurich North America and GE Warranty Management. This service provides streamlined customer service to OEM customers, including access to state-of-the-art call centers, preferred provider networks for high-quality repairs and extensive database management services.
Zurich North America (www.zurichna.com) is a leading commercial property-casualty, health and accident insurance provider serving the multinational, middle market and small business sectors in the United States and Canada. Headquartered in Schaumburg, Ill., Zurich North America has 11,650 employees and writes $8.0 billion in annual premiums. Zurich North America business units are the Zurich U.S. pool of companies (Corporate Customer, Middle Markets, Small Business, Strategic Partnerships, Construction, Specialties, Zurich Global Energy, Warranty, Surety & Financial Enterprises, Empire Fire and Marine and Universal Underwriters Group) and Zurich Canada. The Zurich U.S. pool of companies is rated A+ (Superior) by A.M. Best and AA+ (Excellent) by Standard & Poor’s. Zurich North America is a member of the Zurich Financial Services Group.
The Zurich Financial Services Group (www.zurich.com) is a global leader in the financial services industry, providing its customers with solutions in the area of financial protection and asset accumulation. The Group concentrates its activities in five business segments: non-life and life insurance, reinsurance, Farmers Management Services and asset management. Headquartered in Zurich, Switzerland, the Group’s worldwide presence builds on strong positions in its three key markets: the United States, the United Kingdom and Switzerland. It has offices in more than 60 countries reaching 35 million customers and employing 70,000 people. Based on consolidated figures for 2000, the Group achieved gross premiums of USD 50 billion. This amount includes insurance deposits as well as premiums from the Farmers P&C Group. The net income amounted to USD 2.33 billion. On December 31, 2000, the Group had USD 440 billion of assets under management of which USD 259 billion represent funds managed for third-party institutional and retail customers.
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Media contacts:
Janet Walker
Zurich North America
(847) 605-7604
janet.walker@zurichna.com
Betty Schwartz
Miller DeMartine Group
(201) 567-7783
bschwartz@mdgpr.com