Skip to the content

Procurement Market Intelligence Report

Product Warranty Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Product Warranty Insurance?

What is the average price of Product Warranty Insurance?

This procurement report includes pricing information to help you purchase Product Warranty Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Product Warranty Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Product Warranty Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Product Warranty Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Product Warranty Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

The top four suppliers of product warranty insurance collectively generate less than 30.0% of total market revenue, indicating a low level of market share concentration. High fragmentation stems from a low level of capital intensity, whereby expensive machinery and infrastructure investments are not needed to commence operations. Moreover, the advent... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?


How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Warranty Terms

Will the covered product need to be inspected before I can enroll in a policy?

In what situations can coverage be denied?

What warranty period duration do you recommend for this product and why?

What additional fees may be assessed if a claim is made? Will a deductible be required for product repair or replacement?

Will the warranty be transferable to another party if I sell the insured product?

If applicable: What benefits does your warranty provide beyond the factory warranty?

Supplier Qualifications

How long has your company operated in the market for product warranty insurance?

How many product warranty insurance policies does your company currently manage?

What licenses do you have that permit you to sell insurance?

How do your policies and services compare with those of your competitors?

How do you select and judge your underwriting staff to ensure they evaluate products properly?

Claims Systems

How can a warranty claim request be submitted?

What materials are required to submit a claim?

What measures does your company take to resolve claims?

How long on average does it take your company to satisfy claims?

What process exists for disputing the results of a claim?

What is your claims approval rate for the previous year?

What is your paid claims volume for the previous year?

Supply Chain

What buying markets do you rely upon for business?

What measures have you taken to limit the risk of your supply chain?

How do you reduce costs when sourcing different products and services?

What is your largest input cost and how do you respond to supply shortages for that product or service?

If there are issues with your suppliers, how might they impact your ability to fulfill my claim? How do you satisfy replacement claims if a product is unavailable from a manufacturer?

Financial Stability

How does your company's profitability compare to that of other market firms?

How does your company compensate for increases in the price of the products you purchase? Do you absorb additional costs or pass them down to your clients?

Has your company ever depleted its available cash reserves for fulfilling claims? Is your company at risk of this happening in the future?

What will happen to my coverage if your company goes out of business?

Customer Service

What is the average retention rate among your clients?

How do you rectify client complaints and concerns?

What is the availability of your customer service staff?

Do you have clients that are willing to provide references on your behalf? If so, how can I get in contact with them?

Do you have toll-free customer service phone numbers available for claims and administrative support? Are these numbers available internationally?

How do you select and judge your customer service staff to ensure they are able to satisfy your clients’ needs?

“Sending out RFPs used to be a nightmare”

Let’s chat about how procurement market intelligence can reduce 
the time you spend issuing RFPs.

Key elements for every RFP

What should my RFP include?

Project Budget

Vendors should include a detailed breakdown of their premium rates.

Buyers should outline any other costs that insurers are responsible for, such as shipping.

Selection Criteria

Buyers should evaluate the extent to which the coverage meets their needs.

Buyers should evaluate insurers based on their premium rates.

Buyers should evaluate each insurer's experience and financial performance.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the policy's length, including the date when it begins.

Buyers should include the date when proposals are due, as well as any other relevant dates prior to the contract award.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk for product warranty insurers is moderate. Market vendors source inputs from a number of upstream manufacturers in order to replace or repair products when claims are filed. Key upstream suppliers include communication equipment manufacturers, computer manufacturers and major household appliance manufacturers. These upstream suppliers operate in... Subscribe to learn more.