Aon Expanding Its Horizons

By Alan Wolf On Feb 13 2006 - 8:00am

The future looks bright for Aon Warranty Group, the North American unit of the world's largest single-source provider of warranty administration, underwriting, marketing and call center services.

Like other extended service providers, Aon is riding a renewed wave of extended service contract sales as shoppers seek coverage for flat-panel TVs, thousand-dollar washers and other big-ticket best sellers. But Aon is also thinking beyond the retail and manufacturing box.

Under the aegis of president and chief operating officer Michael Frosch, the company has extended its multi-service offering to non-traditional distribution channels including the financial services, real estate, utilities, financial direct and affinity marketing sectors.

“This year we're going to experience massive growth by pushing products across multiple channels,” Frosch said. “Think about the value-add for consumers, and the revenue stream for satellite, cable, phone and Internet service providers, for example, of tying a $2 per month service program to their billing system.”

Moreover, Aon is bringing its outside-the-box and custom service concepts to its traditional retail partners as well. “Retailers are now offering home warranties and coverage for older products,” Frosch noted, “and head-unit installers are providing vehicle I.D. etching. It's the perfect add-on sale and provides great value to consumers.”

He added, “The business is more than just break-and-fix.”

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