1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in China

Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in China is about the market for extended warranties and insurance sold in conjunction with white goods, brown goods, grey goods, mobile gadgets and mobile phones in China.

The study draws on extensive primary and secondary research covering 187 organisations involved in the production and distribution of mobile and non-mobile consumer products including manufacturers, mainstream mobile network operators, mobile virtual network operators (MVNOs), specialised retailers of consumer electronics, supermarkets and other types of retailer (namely, department stores, DIY outlets, speciality retailers and variety retailers). Hence, it provides a comprehensive overview of this activity across China.

Key features of this publication include:

- quantification of the market value for extended warranties and insurance linked to mobile and non-mobile consumer products: how much is the market likely to have been worth in China in 2015, how did it split between white goods, brown goods, grey goods, mobile gadgets and mobile phones, and to what extent did each of these segments grow or decline in value since 2011?

- analysis of extended warranty underwriters and brokers that have established scheme relationships with manufacturers and retailers of white goods, brown goods, grey goods, mobile gadgets and mobile phones, including their unweighted share of partnerships;

- consideration of the potential for cross-selling stand-alone extended warranty and insurance policies through independent channels that are separate from either manufacturers or retailers: does an emerging market exist for this form of distribution in China?

- forecasts for the market size for extended warranties and insurance linked to mobile and non-mobile consumer products up to 2019: assuming no significant changes in the number of manufacturer and retailer schemes, what factors will cause this sector to grow or decline in the next few years?

Table Of Contents

Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in China
TABLE OF CONTENTS
00 EXECUTIVE SUMMARY 1
10 INTRODUCTION 3
What is this report about? 3
Rationale 3
A number of factors are causing dynamics to change in the extended warranty and insurance sector… 3
… including shifts in consumer behaviour… 3
… especially in relation to their use of distribution channels 4
Methodology 4
Manufacturer and retailer survey 4
The survey covers close to 200 manufacturers and retailers of mobile and non-mobile consumer products 4
Market data 5
Distribution channels for retailers 5
Definitions 6
Extended warranties and insurance 6
Extended warranties and insurance linked to consumer products come in a variety of formats… 6
…and are frequently marketed to consumers under alternative titles 6
Premiums and other revenues 7
Operating models 7
Weighted shares 8
PartnerBASE and market data annexe 8
Finaccord 9
20 WHITE GOODS 10
Introduction 10
Underlying market value and volume 11
The value and volume of sales of white goods in China has increased rapidly in recent years 11
Manufacturers' original warranty length and consumer law 12
Over three quarters of manufacturers offer an original warranty for white goods of one year 12
There have been some significant changes in Chinese consumer protection law 12
Manufacturer schemes for extended warranties and insurance 13
Few manufacturers of white goods have yet introduced an extended warranty scheme… 13
… and most of those that have reportedly operate their programs on an internal basis 14
Retailer schemes for extended warranties and insurance 16
Extended warranties for white goods are somewhat more widespread among retailers… 16
with Asurion and The Warranty Group significant external partners in this context… 17
… albeit they are split by another competitor in the weighted analysis 17
Combined analysis for manufacturer and retailer schemes 19
In the combined analysis, one provider emerges as likely to control over a half of the total market 19
Risk coverage of all schemes for extended warranties and insurance 20
Cover for accidental damage is rarely a feature of extended warranties for white goods in China 20
Independent distribution channels 20
There are several independent distributors of extended warranties for white goods in China 20
Market value for extended warranties and insurance 21
Market forecasts to 2019 22
The value of the white goods market is forecast to continue rising quickly through to 2019… 22
meaning that growth in the related extended warranty sector will also continue 23
30 BROWN GOODS 24
Introduction 24
Underlying market value and volume 25
The value of the Chinese brown goods market rose by around RMB 140 billion between 2011 and 2015 25
Manufacturers' original warranty length and consumer law 26
Most brown goods manufacturers in China offer only a one-year factory guarantee… 26
Manufacturer schemes for extended warranties and insurance 27
… and comparatively few have introduced any kind of extended warranty 27
Retailer schemes for extended warranties and insurance 29
Retailer enthusiasm for extended warranties for brown goods is more evident… 29
…with Asurion and The Warranty Group again the most prominent providers 30
Combined analysis for manufacturer and retailer schemes 32
Again, the combined analysis points to a relatively concentrated market 32
Risk coverage of all schemes for extended warranties and insurance 33
Most schemes are limited to cover for technical breakdown only 33
Independent distribution channels 33
Market value for extended warranties and insurance 34
Market forecasts to 2019 35
Growth in the value of China's market for brown goods will carry on from 2015 to 2019 35
… and the value of the related extended warranty market will also rise quite strongly 36
40 GREY GOODS 37
Introduction 37
Underlying market value and volume 38
Reflecting a global trend, the increase in sales of grey goods has been a lot more muted 38
Manufacturers' original warranty length and consumer law 39
Six manufacturers offer original warranties for grey goods of longer than one year in China… 39
Manufacturer schemes for extended warranties and insurance 40
… and six also promote extended warranties 40
Retailer schemes for extended warranties and insurance 42
The supply structure for retailer extended warranties for grey goods is similar to that for brown goods… 42
Combined analysis for manufacturer and retailer schemes 44
… albeit the combined analysis points to a more fragmented market than that for white or brown goods 44
Risk coverage of all schemes for extended warranties and insurance 45
A few extended warranty programs for grey goods include cover for accidental damage 45
Independent distribution channels 45
Extended warranty cover for grey goods can be acquired from a range of independent providers 45
Market value for extended warranties and insurance 46
Market forecasts to 2019 47
The market for grey goods is forecast to continue its slow growth between 2015 and 2019 47
…which is likely to translate into marginal growth in the associated extended warranty market 48
50 MOBILE GADGETS 49
Introduction 49
Underlying market value and volume 50
The value of the Chinese mobile gadget market increased by over 70% between 2011 and 2015 50
Manufacturers' original warranty length and consumer law 51
A majority of mobile gadget manufacturers in China offer an original guarantee of one year… 51
Manufacturer schemes for extended warranties and insurance 52
… with several also having introduced an extended warranty scheme 52
Retailer schemes for extended warranties and insurance 54
Retailer extended warranty programs are mainly run in conjunction with one or more external partners… 54
Combined analysis for manufacturer and retailer schemes 56
… with the overall supply structure very similar to that for extended warranties for grey goods 56
Risk coverage of all schemes for extended warranties and insurance 57
No mobile gadget insurance or extended warranty programs yet include cover for theft or loss 57
Independent distribution channels 57
Market value for extended warranties and insurance 58
Market forecasts to 2019 59
Demand for tablets and low-cost laptops will drive further growth in sales of mobile gadgets… 59
… which will help to support a further rise in the mobile gadget insurance and extended warranty market 60
60 MOBILE PHONES 61
Introduction 61
Underlying market volumes 62
Mobile phone subscriptions per capita in China fell just short of 100 at the end of 2015… 62
with almost 1 billion individuals now believed to own at least one mobile handset 63
Manufacturers' original warranty length and consumer law 64
Only two mobile phone manufacturers offer an original warranty of longer than one year… 64
Manufacturer schemes for extended warranties and insurance 65
… and few have introduced any form of insurance or extended warranty cover 65
Retailers schemes for extended warranties and insurance 67
Just over 30% of Chinese mobile phone retailers offer handset insurance or extended warranty cover… 67
… but it is not yet available from any mobile network operators 67
Combined analysis for manufacturer and retailer schemes 69
Asurion is likely to be the dominant external partner in this market by a comfortable margin 69
Risk coverage of all schemes for extended warranties and insurance 70
No manufacturer or retailer policies yet provide coverage for loss, theft or airtime abuse 70
Independent distribution channels 70
There are at least seven independent sources of mobile phone cover in China 70
Market value for extended warranties and insurance 71
Market forecasts to 2019 73
Mobile phone subscriptions per capita are predicted to reach 115 by 2019 73
which would equate to a mobile handset penetration rate of around 84% of the total population 74
A further surge in value is also predicted for the mobile phone insurance and extended warranty market 75

LIST OF GRAPHICS / TABLES

00 EXECUTIVE SUMMARY 1
Approximate market value for extended warranties and insurance linked to mobile and non-mobile consumer products in China, 2011, 2015 and 2019 (forecast) 2
Approximate market value for extended warranties and insurance linked to mobile and non-mobile consumer products in China, 2011, 2015 and 2019 (forecast) (table) 2
10 INTRODUCTION 3
Organisations researched in China, segmented by type, 2015 4
Retailers researched in China segmented by distribution channel, 2015 6
20 WHITE GOODS 10
Value and volume of sales of white goods in China, 2011 and 2015 11
Comparative length of original warranties offered by manufacturers of white goods in China, 2015 12
Manufacturer schemes for extended warranties and insurance linked to white goods in China: provision rates and operating models, 2015 13
Manufacturer schemes for extended warranties and insurance linked to white goods in China: unweighted and weighted provider share of partnerships, 2015 15
Retailer schemes for extended warranties and insurance linked to white goods in China: provision rates and operating models, 2015 16
Retailer schemes for extended warranties and insurance linked to white goods in China: unweighted and weighted provider share of partnerships, 2015 18
Manufacturer and retailer schemes for extended warranties and insurance linked to white goods in China: combined analysis of weighted provider share of partnerships, 2015 19
Risk coverage of all schemes for extended warranties and insurance linked to white goods in China, 2015 20
Approximate market value for extended warranties and insurance linked to white goods in China, 2011 and 2015 21
Value and volume of sales of white goods in China, 2015 and 2019 (forecast) 22
Approximate market value for extended warranties and insurance linked to white goods in China, 2015 and 2019 (forecast) 23
30 BROWN GOODS 24
Value and volume of sales of brown goods in China, 2011 and 2015 25
Comparative length of original warranties offered by manufacturers of brown goods in China, 2015 26
Manufacturer schemes for extended warranties and insurance linked to brown goods in China: provision rates and operating models, 2015 27
Manufacturer schemes for extended warranties and insurance linked to brown goods in China: unweighted and weighted provider share of partnerships, 2015 28
Retailer schemes for extended warranties and insurance linked to brown goods in China: provision rates and operating models, 2015 29
Retailer schemes for extended warranties and insurance linked to brown goods in China: unweighted and weighted provider share of partnerships, 2015 31
Manufacturer and retailer schemes for extended warranties and insurance linked to brown goods in China: combined analysis of weighted provider share of partnerships, 2015 32
Risk coverage of all schemes for extended warranties and insurance linked to brown goods in China, 2015 33
Approximate market value for extended warranties and insurance linked to brown goods in China, 2011 and 2015 34
Value and volume of sales of brown goods in China, 2015 and 2019 (forecast) 35
Approximate market value for extended warranties and insurance linked to brown goods in China, 2015 and 2019 (forecast) 36
40 GREY GOODS 37
Value and volume of sales of grey goods in China, 2011 and 2015 38
Comparative length of original warranties offered by manufacturers of grey goods in China, 2015 39
Manufacturer schemes for extended warranties and insurance linked to grey goods in China: provision rates and operating models, 2015 40
Manufacturer schemes for extended warranties and insurance linked to grey goods in China: unweighted and weighted provider share of partnerships, 2015 41
Retailer schemes for extended warranties and insurance linked to grey goods in China: provision rates and operating models, 2015 42
Retailer schemes for extended warranties and insurance linked to grey goods in China: unweighted and weighted provider share of partnerships, 2015 43
Manufacturer and retailer schemes for extended warranties and insurance linked to grey goods in China: combined analysis of weighted provider share of partnerships, 2015 44
Risk coverage of all schemes for extended warranties and insurance linked to grey goods in China, 2015 45
Approximate market value for extended warranties and insurance linked to grey goods in China, 2011 and 2015 46
Value and volume of sales of grey goods in China, 2015 and 2019 (forecast) 47
Approximate market value for extended warranties and insurance linked to grey goods in China, 2015 and 2019 (forecast) 48
50 MOBILE GADGETS 49
Value and volume of sales of mobile gadgets in China, 2011 and 2015 50
Comparative length of original warranties offered by manufacturers of mobile gadgets in China, 2015 51
Manufacturer schemes for extended warranties and insurance linked to mobile gadgets in China: provision rates and operating models, 2015 52
Manufacturer schemes for extended warranties and insurance linked to mobile gadgets in China: unweighted and weighted provider share of partnerships, 2015 53
Retailer schemes for extended warranties and insurance linked to mobile gadgets in China: provision rates and operating models, 2015 54
Retailer schemes for extended warranties and insurance linked to mobile gadgets in China: unweighted and weighted provider share of partnerships, 2015 55
Manufacturer and retailer schemes for extended warranties and insurance linked to mobile gadgets in China: combined analysis of weighted provider share of partnerships, 2015 56
Risk coverage of all schemes for extended warranties and insurance linked to mobile gadgets in China, 2015 57
Approximate market value for extended warranties and insurance linked to mobile gadgets in China, 2011 and 2015 58
Value and volume of sales of mobile gadgets in China, 2015 and 2019 (forecast) 59
Approximate market value for extended warranties and insurance linked to mobile gadgets in China, 2015 and 2019 (forecast) 60
60 MOBILE PHONES 61
Volume of mobile phone subscriptions and subscriptions per capita in China, 2011 and 2015 62
Number of individuals owning a mobile phone in China and their weighting within the total population, 2011 and 2015 63
Comparative length of original warranties offered by manufacturers of mobile phones in China, 2015 64
Manufacturer schemes for extended warranties and insurance linked to mobile phones in China: provision rates and operating models, 2015 65
Manufacturer schemes for extended warranties and insurance linked to mobile phones in China: unweighted and weighted provider share of partnerships, 2015 66
Retailer schemes for extended warranties and insurance linked to mobile phones in China: provision rates and operating models, 2015 67
Retailer schemes for extended warranties and insurance linked to mobile phones in China: unweighted and weighted provider share of partnerships, 2015 68
Manufacturer and retailer schemes for extended warranties and insurance linked to mobile phones in China: combined analysis of weighted provider share of partnerships, 2015 69
Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in China, 2015 70
Approximate market value and policies in force for extended warranties and insurance linked to mobile phones in China, 2011 and 2015 72
Volume of mobile phone subscriptions and subscriptions per capita in China, 2015 and 2019 (forecast) 73
Number of individuals owning a mobile phone in China and their weighting within the total population, 2015 and 2019 (forecast) 74
Approximate market value and policies in force for extended warranties and insurance linked to mobile phones in China, 2015 and 2019 (forecast) 75

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Product Warranty Insurance - Industry Market Research Report

Product Warranty Insurance - Industry Market Research Report

  • $ 1020
  • Industry report
  • December 2016
  • by Ibisworld

Satisfaction guaranteed: Rising incomes will spur big-ticket sales, lifting demand for warranties AbstractProduct Warranty Insurance The Product Warranty Insurance industry underwrites factory warranties ...

Non-Life Insurance in Germany, Key Trends and Opportunities to 2019

Non-Life Insurance in Germany, Key Trends and Opportunities to 2019

  • $ 1450
  • Industry report
  • June 2016
  • by Timetric

Synopsis Timetric’s 'Non-Life Insurance in Germany, Key Trends and Opportunities to 2019' report provides a detailed outlook by product category for the German non-life insurance segment, and a comparison ...

Life Insurance in Germany, Key Trends and Opportunities to 2019

Life Insurance in Germany, Key Trends and Opportunities to 2019

  • $ 1450
  • Industry report
  • June 2016
  • by Timetric

Synopsis Timetric’s 'Life Insurance in Germany, Key Trends and Opportunities to 2019' report provides detailed analysis of the market trends, drivers and challenges in the German life insurance segment. ...


ref:plp2016

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.