Channel Metrics: UK Extended Warranties (for Cars) - Consumer Distribution Trends- February 2010 Edition

• Publication date: February 2010

The Channel Metrics briefing about extended warranties for cars is the most detailed and up-to-date guide to distribution trends in extended warranties for cars in the UK available on a published basis. It analyses: how consumers acquire extended warranties for cars - e.g. online, telephone, post or in person; from whom they acquire them - e.g. direct from the provider, through intermediaries or affinity schemes; and how often they acquire them ...

The Channel Metrics briefing about extended warranties for cars is the most detailed and up-to-date guide to distribution trends in extended warranties for cars in the UK available on a published basis. It analyses: how consumers acquire extended warranties for cars - e.g. online, telephone, post or in person; from whom they acquire them - e.g. direct from the provider, through intermediaries or affinity schemes; and how often they acquire them - i.e. how many consumers acquired extended warranties for cars in the last year, either for the first time or by switching provider instead of renewing or carrying on with an existing product. Findings from this survey are compared with those from 2005 and 2007 to show trends over time.

Motor Insurance Industry in the United Kingdom

TABLE OF CONTENTS


0.0 EXECUTIVE SUMMARY .


1
1.0 INTRODUCTION ............. 3
Research rationale .............. 4
A number of motivating factors underpin the Channel Metrics report and series of briefings .............. 4
Updating the results from the 2005 and 2007 surveys .................. 4
Analysis of consumers making an active distribution choice ........ 4
Analysis of consumers purchasing or taking out financial services in prior years .............. 4
Analysis of distribution interfaces .............. 4
Analysis of specific distribution channels.. 5
Expanding upon the results from the 2005 and 2007 surveys ...... 5
Finaccord ........... 7
Channel Metrics briefings ....... 7
Other UK consumer research publications ................. 8
UK affinity and partnership marketing research publications ........ 9
UK small business financial services research publications ......... 9


2.0 ANALYSIS OF RESULTS................ 10
Introduction ..... 11
Option for customised data analysis . 11
Switching rates and brand new sales - 2009........ 12
The switching market is nearing the same size as the new extended warranty market .. 12
Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared ........ 13
Face-to-face sales remain the most important interface for extended warranties ........... 13
Distribution channels - 2009, 2007, 2005 and all previous buyers compared ......... 16
Overview ........... 16
Aggregators and brokers are winning market share from non-for-profit affinity groups .. 16
Detailed analysis .................. 19
Car makers and online aggregators are the rising channels for extended warranties for cars .......... 19


3.0 APPENDIX . 22
Research sample and mechanics ....... 23
Research methodology and structure .................. 25


GRAPHICS / TABLES

The financial services distribution channel universe - specific distribution channels and distribution interfaces 6
% of consumers switching provider or acquiring an extended warranty for a car for the first time, 2009 12
Analysis of distribution interfaces used for acquiring extended warranties for cars, 2009, 2007, 2005 and all previous
years 14
Analysis of distribution interfaces used for acquiring extended warranties for cars, 2009, 2007, 2005 and all previous years (data) 15
Overview of distribution channels used for acquiring extended warranties for cars, 2009, 2007, 2005 and all previous years 17
Overview of distribution channels used for acquiring extended warranties for cars, 2009, 2007, 2005 and all previous years (data) 18
Comparison of main distribution channels used for acquiring extended warranties for cars, 2009 and all previous years 20
Detailed analysis of distribution channels used for acquiring extended warranty, 2009, 2007, 2005 and all previous years (data) 21
Sample breakdown by age group, household income band and geographical location 24


DISTRIBUTION CHANNELS INVESTIGATED FOR THIS PRODUCT
Direct sales
Insurance aggregators and brokers
namely
Aggregators
Insurance brokers
Not-for-profit affinity groups
namely
Automotive clubs
Professional and trade associations
Trade unions
Non-financial commercial partners
namely
Automotive associations
Car dealers
Car manufacturers