Your salespeople smile when they get their commission from selling an extended warranty. Your customers smile when their claim is paid.
But, there’s a whole messy middle where every dime must be accounted for and every contract triple-checked. This important (but stressful) work devours hundreds of hours every year for workers who may spend more time looking at spreadsheets than their family.
It doesn’t have to be that way when tools like Inline Admin can help your dollars make more sense.
From Manual Grind to Automated Gratification
Tracking earned income can inspire dread on a monthly — or even daily — basis. The process often looks something like this:
- Export your contract data into spreadsheets
- Manually apply complex formulas
- Calculate individual daily earnings
- Verify calculations are accurate
- Import results back into your system
For a single five-year contract, that’s 1,800+ daily calculations! Cumbersome, but doable. But it becomes impossible when thousands of contracts are involved.
This sheer volume also opens the door to manual input errors — and humans are 100x more likely to make an error than an automated system.
The good news? Inline Admin automates it all for you.
What This Means For Your Bottom Line
- Instantly see accurate, instant earnings for thousands of contracts
- Finance can focus on analysis instead of data entry
- Processing takes minutes instead of hours (or days)
- No more “monthly-report-v7-FINAL.xslx” files
Customizing the Complex
Your job would be easier if every contract earned the same amount. But extended RV warranties earn different amounts from extended home warranties. And extended home warranties earn different amounts from vehicle service contracts.
Now, you could create separate spreadsheets with different rules and formulas for each type of policy you sell. More than likely, things will snowball into month-end headaches.
With Inline, you can create and apply earnings rules based on:
- Seller
- Product type
- Contract length
- Vehicle segment
- Geographic region
- Any parameter you need
What This Means for Your Bottom Line
- A real understanding of the economics for each warranty type
- One ecosystem for all business units
- No more backtracking or backdating adjustments
Smoother Payouts
You operate in a multi-stakeholder world where plenty of people need to get paid: Vendors, repair shops, the seller. Everybody wants their cut — promptly and down to the penny.
Normally, that would require, you guessed it, another formula involving reserves and other claim criteria. Our system is the only in the market with unlimited funding buckets so you can split the money associated with each contract however you like.
What This Means for Your Bottom Line
- Less time spent on reconciliations
- Air-tight audit trails
- Fewer disputes with your vendors and suppliers
Your Rearview Becomes Real Time
Every report you create contains an inherent irony.
Why?
You spend hours downloading, compiling and crunching numbers from the past day, week or quarter. Numbers that are, in many ways, already out of date. Does that sound like the best way to create a forward-looking strategy?
Probably not.
Inline Admin generates real-time financial figures, accessible anytime with just a couple of clicks. What you receive is dynamic, instant and far more powerful than what you’re accustomed to — and that means the ability to make transformative decisions in the here and now.
This type of immediate access can lead to a 20% performance improvement, according to McKinsey.
What This Means for Your Bottom Line
- You’ll understand financial performance, loss trends and profitability drivers as they happen.
- You’ll make proactive decisions, not reactionary ones.
- You’ll identify potential risks and profit losses before they become real threats.
Focusing on 82
Most extended warranty companies target an 18% loss ratio. Anytime a loss exceeds that percentage, profitability starts slipping. And we all know extended warranty companies operate on slim margins to begin with. Beyond paying claims, ancillary costs associated with warranties can reduce net profit by up to 5% per contract.
But what if your loss ratio could reach 17% or 15% automatically? You’d likely sign up for that software without thinking twice.
Here’s a real-world example:
One of our clients almost paid out a $4,900 extended warranty claim. The keyword there? Almost.
Since our APIs include household names like Carfax, our client’s administrator found the claim was filed against a salvaged title, which made it ineligible — and they found it without flipping through a binder or reading the fine print.
They saw it clear as could be in our system.
So, Inline Data Systems not only helps you sell more extended warranties, our financial software helps you become more profitable.
What This Means For Your Bottom Line
- Instant contract intelligence for liability limits and others to prevent erroneous payouts
- Automatic loss ratio benchmarking
- Immediate notice when metrics fall short of established targets
- Insights to optimize pricing, reserves and underwriting guidelines
Ready To Trade Spreadsheets for Something Streamlined?
Financial administration may not be the flashiest career. But that doesn’t mean the tools you use shouldn’t have the features needed to make your job less frustrating.
Reach out for a no-obligation demo to see how we can restore sanity to your workflow — and boost your bottom line.
