Kerper and Bowron wins warranty innovation award for new cash-flow method

Kerper and Bowron LLC received the Warranty Innovation Award for Transformative Technology Innovation in Chicago for its patent-pending Kerper-Bowron Method. The firm also published a second peer-reviewed paper in Risks and said it has engaged Caylent to support production readiness of the technology.

Why it matters: - The Kerper-Bowron Method is designed to project the expected cash flow of each service contract or manufacturer warranty month by month from point-of-sale data. - The same contract-level stream is intended to support accounting recognition, liability measurement, regulatory compliance, and collateralization or risk-transfer structures. - The award and the new paper signal continued traction for a method aimed at warranty, insurance, and capital applications.

What happened: - Kerper and Bowron LLC announced it received the Warranty Innovation Award for Transformative Technology Innovation at the Extended Warranty & Service Contract Innovations Conference in Chicago. - John Kerper, FSA, MAAA, co-founder and co-inventor of the Kerper-Bowron Method, accepted the award. - The firm also announced publication of its second peer-reviewed paper in Risks (MDPI), Volume 14, Issue 9, Article 213 (2026): “The Kerper–Bowron Method: Additional Notes on Manufacturer’s Warranties and Collateralization Applications.” - The paper builds on an earlier Risks article, 14(3):44 (2026).

The details: - The new paper extends the cash-flow engine to manufacturer-warranty accruals. - The paper also discusses proposed applications in collateralized risk transfer, lending against service-contract equity, and risk-adjusted customer lifetime value. - Intellectual property in the Kerper-Bowron Method is held by Irish Trinity LLC. - U.S. non-provisional and corresponding PCT applications were filed July 31, 2026. - Kerper and Bowron has engaged Caylent, an AWS Premier Tier Services Partner and Anthropic Preferred Services Partner, on technical work supporting production readiness of the Kerper-Bowron Method. - Amazon Web Services provided funding support. - More information

Between the lines: - The award, the peer-reviewed publication, and the technical partnership suggest the firm is pushing the method from concept into a more deployable product. - The cited applications point to a broader commercial model than traditional warranty accounting, including financing and risk-transfer use cases. - Lee Bowron said the work reflects a single underlying advance: projected cash flow from one contract, with accounting, collateralization, and related structures built on top of that stream.

What’s next: - Lee Bowron and John Kerper will present the Kerper-Bowron Method at the F&I Reinsurance & Product Conference in Arizona on November 17, 2026. - The company has already presented the method to academic, actuarial, and industry audiences, including a University of Leeds Mathematics seminar, the AICT/CAS Joint Property/Casualty and Health Actuarial Seminar in Taipei, and the Consumer Credit Industry Association conference in Atlanta. - Irish Trinity LLC remains the commercial vehicle for further development and application of the intellectual property.

The bottom line: - Kerper and Bowron is positioning the Kerper-Bowron Method as both an academic contribution and a practical platform for warranty, accounting, and risk-transfer work.