Most US manufacturing companies will accrue between 1-3% of revenue to cover warranty costs.
Industry-wide analysis has revealed that companies are more likely to over-accrue to avoid nasty shocks in the future. Every company we’ve spoken to has a scary story from the last ten years where they under-accrued so they are likely to be more conservative in reserve setting than they might need to be. Our reinsurance provision is designed to remove that risk, reduce accurals and free up capital for their businesses.
In a unique partnership with the world’s largest reinsurer MunichRe, we now provide insurance for OEM and suppliers’ warranty reserves. With the accuracy of our predictions of product failures, companies can calculate their accruals with more confidence ensuring any costs that exceed the limit are covered.
Talk to usFor further information please email or call us on: +44 (0)845 1 305 521 | firstname.lastname@example.org
If you would like to find out more information about We Predict then fill in the form on this page and a We Predict representative will contact you shortly to discuss your enquiry in detail.