Businesses Development & Marketing (BDM) has secured the European distribution rights for a system that can help car makers and distributors identify future warranty trends and forecasting costs using actuarial techniques.
The program is called ‘BDM Indico’ and is claimed to work alongside existing manufacturer warranty administration systems.
“Warranty represents a significant cost for most manufacturers [and] can be difficult to accurately forecast. It can also be difficult to identify developing trends before they become an issue” said BDM director Mike Surridge.
“One of the fundamental flaws in most systems is that historical data is used in isolation, BDM Indico has a predictive element using actuarial methods.”
He claimed that an actuarially based program would identify both future warranty costs over any determined warranty period and identify individual dealers which are most likely to incur higher warranty ‘burn’ rates in the future.
“Having a tool to identify such trends and to accurately forecast warranty costs will enable warranty audit teams to be despatched more quickly to individual retailers, thus reducing future warranty costs and claw-back exposure. This is a major advantage to all parties”.
The product is already being used by major manufacturers in the USA and Canada, BDM said.