PRICING A MOTOR EXTENDED WARRANTY WITH LIMITED USAGE COVER

@article{Musakwa2014PRICINGAM,
  title={PRICING A MOTOR EXTENDED WARRANTY WITH LIMITED USAGE COVER},
  author={Fidelis T Musakwa},
  journal={ASTIN Bulletin},
  year={2014},
  volume={45},
  pages={101 - 125}
}
Abstract Providers of motor extended warranties with limited usage often face difficulty evaluating the impact of usage limits on warranty price because of incomplete usage data. To address this problem, this paper employs a non-parametric interval-censored survival model of time to accumulate a specific usage. This is used to develop an estimator of the probability that a provider is on risk at a specific time in service. The resulting pricing model is applied to a truck extended warranty case… 
Research on Pricing of Flexible Two-Dimensional Extended Warranty Considering Preventive Maintenance
  • Xiaolei ZhangC. Su
  • Business
    Xibei Gongye Daxue Xuebao/Journal of Northwestern Polytechnical University
  • 2019
TLDR
The results demonstrate that it is helpful to maximize the benefit of vendor by providing customized warranty strategy, the implementation of preventive maintenance during the whole warranty period can effectively reduce warranty cost for both sides.
A flexible two‐dimensional basic warranty policy with two continuous warranty regions
Flexible warranty policies can satisfy customers by allowing them to select the warranty regions according to their usage rates. However, customers are usually unaware of their future usage rates
Two-dimensional warranty: A literature review
The warranty policies for capital-intensive products, such as automobiles, heavy equipment, and aircraft engines, typically have two dimensions, that is, the age and usage. During the last two
Estimating Maturity Profiles of Nonmaturing Deposits
Understanding the maturity profiles of nonmaturing deposits is vital to assess a bank’s funding liquidity risk and interest rate risk. Estimating these maturity profiles is, however, difficult

References

SHOWING 1-10 OF 55 REFERENCES
An Exposure Based Approach to Automobile Warranty Ratemaldng and Reserving
Existing actuarial techniques for automobile warranty ratemaking and reserving rely heavily on emerging experience (loss development) for the pricing and unearned premium reserving of these products.
VALUING THE UNEXPIRED RISK OF MOTOR SERVICE PLANS
A motor service plan transfers cost of scheduled future services from a customer to the issuer. Automobile manufacturers often specify when a vehicle is due for service in terms of whichever occurs
A usage dependent model for warranty costing
A flexible extended warranty and related optimal strategies
TLDR
An EW that offers more flexibility is discussed and optimal pricing strategies for the EW provider and optimal maintenance and replacement Strategies for the consumer are investigated.
Two-Dimensional Warranty Cost Analysis for Second-Hand Products
In spite of the recent steady increase of the volume of the second-hand markets, often customers remain in doubt regarding the quality and durability of the second-hand products. Aiming to reduce and
A modeling framework for assessing the impact of new time/mileage warranty limits on the number and cost of automotive warranty claims
Unearned Premiums and Deferred Policy Acquisition Expenses in Automobile Extended Warranty Insurance
A prorata formula is commonly used to calculate unearned premium reserves in property-casualty insurance. I believe, however, that an exposureadjusted formula is more appropriate in automobile
...
...