Extended Warranty Service for Vehicles
As an extension of quality guarantee by original factories, LZ Assist’s Vehicle Extended Warranty provides maintenance solutions for vehicles beyond the warranty period.
As long as within the insurance coverage, any mechanical or electrical failures of vehicles could be repaired free of charge, so as the owners will continue to enjoy services of the same quality as those from original manufacturers after the warranty period has expired, guaranteeing their vehicles to be always as good as new ones.
Sample Products: Risk Management Service of Vehicle Extended Warranty
In 2012, LZ Assist, in cooperation with PICC, established an operation and service management system to provide risk management services for vehicle extended warranty.
In addition, LZ and partners also developed value-added services for motor vehicles, providing customers with professional insurance services, such as insurance arrangement for new clients, renewal of insurance, business consulting, guidance for accidents, process improvements, and also including assisting clients in claiming indemnity, setting up a management system of insurance renewal, publicizing and training insurance knowledge, to improve customer satisfaction.
With its own “Dual-CRM” model, LZ Assist integrates the technical expert team, the actuary team, and the IT R&D team to form a project team of vehicle extended warranty, to provide the risk management services, including the design of the insurance scheme, actuarial pricing of products, the review of underwriting/ claim settlement, the formulation of administrative regulations, case management, data mining and so on.
Since the beginning of the project, working with a number of insurance companies, LZ Assist has provided partners like vehicle distribution groups, vehicle OEMs, used car market, 4S stores and Internet finance groups with extended warranty services for original and second-hand vehicles, parallel-imported vehicles, and 32,000 models of 82 brands covered by three major management systems.
LZ Assist has selected more than 500 best automobile maintenance stations across the nation to form its own maintenance network, covering 13 first-tier cities, 23 second- and third-tier cities, as well as key cities of every province, to offer maintenance services to extended warranty vehicles all over China.
In terms of the management of the repair network, we applied a full set of management experience in front-, middle- and back-end maintenance agencies, including network construction, qualification approval, management, and weeding out illegal stations.
An Example of Risk Control Service：
A medium-sized 4S auto distribution group provided extended warranty service for vehicles of two mainstream models on sale. There were 8 reports of engine failures for these two models within 4 months, sending the real-time dynamic loss ration up to 230%.
LZ Assist’s team of extended vehicle warranty began to pay attention when the third claim related to the above-mentioned vehicles occurred. In the same month, through on-site investigation and special industry investigation, it was found that the same type of engines used in two models of the vehicles (four batches in total) have design defects that are more likely to cause engine failures, resulting in varying degrees of vehicle damage and relatively high claim amount.
LZ Assist suggested that insurance companies should restrict the sales of extended warranty services for the relevant vehicle models. The insurance companies accepted the proposal and notified all cooperation channels to stop selling covers to the related two models of the vehicles (four batches in total). LZ Assist followed the existing claim cases continuously, strictly control the maintenance scheme, making the loss ratio of such models of vehicles at the accepted level.