Manufacturers gravitating towards captives to write extended warranty

• Extended warranty generally more profitable than traditional P&C lines
• Bermuda, Cayman, Vermont and Hawaii popular domiciles for extended warranty
• Less risky that P&C lines but companies must still carefully assess exposures
• Often fronted as domiciles have different rules on third-party risk

Companies are increasingly leaning towards utilising captives to write extended warranty coverages.

A warranty is an insurance policy which guarantees products will be repaired or replaced if the item is faulty or broken.