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Extended Warranties and Insurance for Brown Goods in Europe is a report about the market for extended warranties and insurance sold in conjunction with brown goods in 20 countries: Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the UK. Brown goods are defined as in-home consumer electronics including non-mobile home audio and cinema products, televisions and projectors, and video players. Related extended warranties and insurance always cover mechanical and / or technical breakdown with protection for accidental damage and / or theft also incorporated in an increasing number of cases. The report draws on extensive primary and secondary research covering over 800 organisations involved in the production and distribution of brown goods including manufacturers, specialised retailers of consumer electronics, supermarket / hypermarket brands, department stores, variety retailers and other types of retailer (e.g. DIY, furniture and home product outlets and speciality retailers).

Table Of Contents

Extended Warranties and Insurance for Brown Goods in Europe
0.0 EXECUTIVE SUMMARY 1
1.0 INTRODUCTION 4
What is this report about? 4
Rationale 4
Evolving distribution channels both favour and compromise extended warranty provision 4
Methodology 4
Manufacturer and retailer survey 4
The survey's scope covers the vast majority of significant manufacturers and retailers of brown goods 4
Distribution channels for retailers 5
Market data 5
Exchange rates 7
Definitions 7
Extended warranties and insurance 7
Extended warranties and insurance linked to consumer products come in a variety of formats 7
and are frequently marketed to consumers under alternative titles 7
Several parties may be involved in the provision of warranties and insurance to consumers 8
and warranty extensions are sometimes offered at no explicit charge to the consumer 8
Premiums and other revenues 8
Operating models 8
Weighted shares 8
PartnerBASE and market data annexe 9
Finaccord 10
2.0 EUROPEAN OVERVIEW 11
Introduction 11
Underlying market value and volume 12
Across the 20 countries, expenditure on brown goods rose by nearly 5% between 2009 and 2013 12
with France, Germany and the UK accounting for almost a half of the total market value in 2013 13
Provision of extended warranties and insurance by manufacturers and retailers 16
Retailer extended warranty and insurance schemes are far more numerous than manufacturer programs 16
Retailers selling both offline and online are most likely to promote cover for brown goods 18
Manufacturer schemes for extended warranties and insurance 20
Almost 30% of manufacturers of brown goods investigated have a scheme up and running 20
with a minority of these organised in conjunction with a single external partner 20
The most prominent manufacturers are those active across all or most of the 20 countries 23
such as Apple, Samsung, Sony and Toshiba 23
Retailer schemes for extended warranties and insurance 25
Among retailers, the program provision rate surpasses 50% when viewed across all 20 countries 25
Almost two thirds of these initiatives are outsourced entirely to one external partner 25
although internally-managed schemes are most numerous in four countries 25
Domestic and General and SPB hold the most extended warranty partnerships with retail brands 28
Analysis for manufacturer and retailer schemes combined 30
Across all types of scheme, Domestic and General leads by both unweighted and weighted measures 30
with a number of other specialist and multiline insurers occupying high positions in the rankings 30
Risk coverage of all schemes for extended warranties and insurance 32
Cover for accidental damage has increased as a feature of policies protecting brown goods 32
and is especially visible in Austria but much less so in Romania and Switzerland 32
Independent distribution channels 34
Independent providers of stand-alone brown goods cover are active in seven out of the 20 countries 34
Market value for extended warranties and insurance 35
In some countries, extended warranty take-up rates may have declined slightly in recent years 35
and are determined by a number of factors that vary by country 35
The net effect is likely to have been a marginal decrease in the overall market value 37
Nevertheless, growth in the market value is likely to have occurred in 11 countries researched 38
Relative to the value of the underlying brown goods sector, the UK market is the most developed 40
Market forecasts to 2017 42
Steady growth in the underlying market value and volume will continue through to 2017 42
with the strongest rise predicted for Turkey 42
Overall take-up rates for extended warranties for brown goods are unlikely to oscilate greatly 45
in part because the technology of the underlying products will not alter consumer behaviour 45
Thus, the market for extended warranties for brown goods is likely to be fairly stable up to 2017 47
with little change in the segmentation of this market by country 48
Key data tables 50
3.0 AUSTRIA 53
Introduction 53
Underlying market value and volume 54
The value and volume of sales of brown goods both grew only slightly between 2009 and 2013 54
Manufacturers' original warranty length and consumer law 55
Two-year original guarantees are provided most commonly by manufacturers of brown goods 55
Manufacturer schemes for extended warranties and insurance 56
Extended warranty programs have been introduced by Apple, Sharp, Sony and Toshiba 56
Retailer schemes for extended warranties and insurance 58
Extended warranties are on offer from the vast majority of major retailers of brown goods in Austria 58
with five different external partners involved in this domain 58
Assona was bought by SchneiderGolling and Cie in March 2013 59
Risk coverage of all schemes for extended warranties and insurance 60
With one exception, all extended warranty schemes for brown goods include cover for accidental damage 60
Independent distribution channels 60
Market value for extended warranties and insurance 61
Market forecasts to 2017 62
The underlying brown goods market will continue to rise gently in value up to 2017 62
although the associated market for extended warranties may drift back 63
4.0 BELGIUM 64
Introduction 64
Underlying market value and volume 65
The value and volume of sales of brown goods was essentially flat between 2009 and 2013 65
Manufacturers' original warranty length and consumer law 66
Two-year original guarantees constitute the norm for brown goods in Belgium 66
Manufacturer schemes for extended warranties and insurance 67
and not many manufacturers have an arrangement for extended warranties 67
albeit Apple, Panasonic, Samsung and Toshiba are all exceptions in this respect 67
Retailer schemes for extended warranties and insurance 69
Over a half of retail chains in Belgium selling brown goods promote related extended warranties 69
among which Van den Borre and Media Markt may be running the largest programs 69
CAP.Protection was acquired by SPB in March 2014 and is being merged into SPB Belgium 70
Risk coverage of all schemes for extended warranties and insurance 71
Few extended warranty schemes for brown goods include cover for accidental damage 71
Independent distribution channels 71
Market value for extended warranties and insurance 72
Market forecasts to 2017 73
Between 2013 and 2017, Belgium's market for brown goods will register a better growth rate 73
causing the related extended warranty market to increase modestly in value 74
5.0 CZECH REPUBLIC 75
Introduction 75
Underlying market value and volume 76
Czech consumers bought around 1.6 million items classifiable as brown goods in 2013 76
Manufacturers' original warranty length and consumer law 77
Two-year manufacturer guarantees are the norm for brown goods in the Czech Republic 77
Manufacturer schemes for extended warranties and insurance 78
Apple, Samsung, Sony and Toshiba all run extended warranty programs for brown goods 78
Retailer schemes for extended warranties and insurance 80
All but one retailer scheme is outsourced to an external extended warranty or insurance company 80
with five such providers visible in total 80
Risk coverage of all schemes for extended warranties and insurance 82
Cover for accidental damage is available in a minority of schemes 82
Independent distribution channels 82
Market value for extended warranties and insurance 83
Market forecasts to 2017 84
Up to 2017, the underlying brown goods market will rise more by volume than by value 84
and it is possible that the related market for extended warranties will fall back somewhat 85
6.0 DENMARK 86
Introduction 86
Underlying market value and volume 87
The Danish brown goods market was worth over DKK 7 billion in 2013 87
Manufacturers' original warranty length and consumer law 88
No manufacturers offer original guarantees lasting longer than two years in Denmark 88
Manufacturer schemes for extended warranties and insurance 89
ANV and Danrisk both hold partnerships with manufacturers of brown goods 89
Retailer schemes for extended warranties and insurance 91
More than half of retail chains selling brown goods promote related extended warranties 91
with as many as eight providers competing for retailer mandates 91
The acquisition of Securator re-enforces the prominent position of Tryg in this market 91
Risk coverage of all schemes for extended warranties and insurance 93
A majority of extended warranty schemes for brown goods include cover for accidental damage 93
Independent distribution channels 93
Market value for extended warranties and insurance 94
Market forecasts to 2017 95
The underlying brown goods market will continue to rise gently in value up to 2017 95
although it is possible that the related market for extended warranties will diminish slightly 96
7.0 FINLAND 97
Introduction 97
Underlying market value and volume 98
Finnish consumers spent over EUR 680 million on brown goods in 2013 98
Manufacturers' original warranty length and consumer law 99
Two-year original guarantees represent the mode for brown goods in Finland 99
Manufacturer schemes for extended warranties and insurance 100
Most manufacturers of brown goods have not introduced extended warranty programs 100
Retailer schemes for extended warranties and insurance 102
Extended warranties are on offer from only a minority of brown goods retailers in Finland 102
among which Suomen Takuuvakuutus holds most partnerships 102
Risk coverage of all schemes for extended warranties and insurance 104
Extended warranties for brown goods in Finland mainly cover technical faults only 104
Independent distribution channels 104
Market value for extended warranties and insurance 105
Market forecasts to 2017 106
Finland's market for brown goods is predicted to experience growth between 2013 and 2017 106
but a falling attachment rate could cause the associated extended warranty market to go backwards 107
8.0 France 108
Introduction 108
Underlying market value and volume 109
Sales of brown goods advanced steadily between 2009 and 2013 109
Manufacturers' original warranty length and consumer law 110
More manufacturers of brown goods offer a one-year original warranty than a two-year one 110
Manufacturer schemes for extended warranties and insurance 111
Apple, Sharp, Sony and Toshiba have made arrangements for extended warranty schemes 111
with two external providers involved in these 111
Retailer schemes for extended warranties and insurance 113
The provision rate among retailers of brown goods is far higher 113
with 19 external insurers or brokers involved in this realm 113
and with SPB prominent once again 115
AssurOne, EGA Innoserve, Karapass Courtage, SAV Group and Supporter are other players in this field 115
13 retail brands operate schemes internally without apparent external assistance 115
When viewed in weighted terms, the supply structure appears less fragmented 115
AssurOne welcomed Anacap Financial Partners as an equity investor in June 2014 116
Risk coverage of all schemes for extended warranties and insurance 117
A narrow majority of extended warranty schemes for brown goods in France cover accidental damage 117
Independent distribution channels 117
Alternative providers include online specialist Direxi through its 'garantie des biens du foyer' 117
Extended warranties are also sometimes available through payment cards and bank accounts 118
Market value for extended warranties and insurance 118
Market forecasts to 2017 119
France's market for brown goods is predicted to edge up further between 2013 and 2017 119
which will probably result in a largely unchanged picture in the related market for extended warranties 120
9.0 GERMANY 121
Introduction 121
Underlying market value and volume 122
The value and volume of sales of brown goods both grew slightly between 2009 and 2013 122
Manufacturers' original warranty length and consumer law 123
Most manufacturers of brown goods offer a two-year original warranty in Germany 123
Manufacturer schemes for extended warranties and insurance 124
Manufacturer programs for brown goods in Germany are less widespread than those for brown goods 124
Retailer schemes for extended warranties and insurance 126
AlphaTecc, Conrad, Media Markt, Otto and Saturn all run internally-managed schemes 126
with AXA, Domestic and General, ERGO, itonia and Wertgarantie identifiable as external partners 126
Risk coverage of all schemes for extended warranties and insurance 128
A number of extended warranty schemes for brown goods include cover for accidental damage 128
Independent distribution channels 128
In this and other areas, Friendsurance-Alecto has introduced the concept of online peer-to-peer insurance 128
Market value for extended warranties and insurance 129
Market forecasts to 2017 130
The underlying brown goods market will continue to rise gently in value up to 2017 130
although it is possible that the related market for extended warranties will fall back somewhat 131
10.0 IRELAND 132
Introduction 132
Underlying market value and volume 133
The Irish brown goods market was essentially static between 2009 and 2013 133
Manufacturers' original warranty length and consumer law 134
Most brown goods manufacturers offer an original warranty lasting just one year 134
Manufacturer schemes for extended warranties and insurance 135
Extended warranties are available from Apple, Samsung, Sharp, Sony and Toshiba 135
Retailer schemes for extended warranties and insurance 137
and from Argos, Currys, DID Electrical, Expert, Littlewoods and PC World among retail brands 137
Risk coverage of all schemes for extended warranties and insurance 139
Over a half of extended warranty schemes for brown goods include cover for accidental damage 139
Independent distribution channels 139
Market value for extended warranties and insurance 140
Market forecasts to 2017 141
The underlying brown goods market will edge up in value in the years leading up to 2017 141
although the related market for extended warranties is forecast to stagnate 142
11.0 ITALY 143
Introduction 143
Underlying market value and volume 144
The value of brown goods grew slightly while sales volumes fell between 2009 and 2013 144
Manufacturers' original warranty length and consumer law 145
Two-year original warranties are ubiquitous among manufacturers of brown goods in Italy 145
Manufacturer schemes for extended warranties and insurance 146
Manufacturer programs for brown goods in Italy are less common than those for brown goods 146
Retailer schemes for extended warranties and insurance 148
More than 70% of retail chains researched selling brown goods promote related extended warranties 148
with the same external partners in evidence as for extended warranties for brown goods 148
Estendo achieved revenue growth of over 40% in 2013 150
Business Company has begun expanding its extended warranty brand outside of Italy 150
Risk coverage of all schemes for extended warranties and insurance 151
A half of extended warranty schemes for brown goods include cover for accidental damage 151
Independent distribution channels 151
Market value for extended warranties and insurance 152
Market forecasts to 2017 153
By 2017, the brown goods market is forecast to have increased in value by around EUR 200 million 153
which should simultaneously drive progress in the related market for extended warranties 154
12.0 NETHERLANDS 155
Introduction 155
Underlying market value and volume 156
The value and volume of sales of brown goods both increased modestly between 2009 and 2013 156
Manufacturers' original warranty length and consumer law 157
Over half of brown goods manufacturers offer a two-year original guarantee in the Netherlands 157
Manufacturer schemes for extended warranties and insurance 158
Extended warranties offered by manufacturers of brown goods are not especially widespread 158
Retailer schemes for extended warranties and insurance 160
Most retailers selling extended warranties for brown goods do so via external partners 160
although two utilise a captive provider 160
and eight apparently manage their schemes on a purely internal basis 160
Actua Assurantiën holds the highest weighted share of partnerships in this sphere 161
and combined its product protection propositions under one brand in 2012 161
EWP is a sister company to Germany-based Wertgarantie within AEGIDIUS Rückversicherung 161
Risk coverage of all schemes for extended warranties and insurance 163
Over two thirds of extended warranty schemes for brown goods include cover for accidental damage 163
Independent distribution channels 163
Market value for extended warranties and insurance 164
Market forecasts to 2017 165
The Dutch market for brown goods is predicted to continue modest growth through to 2017 165
feeding through to a similar rise in the associated extended warranty market 166
13.0 NORWAY 167
Introduction 167
Underlying market value and volume 168
Both the value and volume of sales of brown goods moved up between 2009 and 2013 168
Manufacturers' original warranty length and consumer law 169
A half of manufacturers of brown goods offer a two-year original warranty in Norway 169
Manufacturer schemes for extended warranties and insurance 170
and several have introduced extended warranty programs 170
Retailer schemes for extended warranties and insurance 172
Four external providers are apparent in the analysis of retailer schemes 172
Risk coverage of all schemes for extended warranties and insurance 174
Most extended warranty schemes for brown goods include cover for accidental damage 174
Independent distribution channels 174
Market value for extended warranties and insurance 175
Market forecasts to 2017 176
By 2017, expenditure on brown goods by Norwegian consumers is predicted to exceed NOK 7.5 billion 176
The value of the extended warranty market will also rise, but only by a small amount 177
14.0 POLAND 178
Introduction 178
Underlying market value and volume 179
In terms of its value, the Polish market for brown goods was virtually static between 2013 and 2017 179
Manufacturers' original warranty length and consumer law 180
Almost all manufacturers of brown goods offer a two-year original warranty 180
Manufacturer schemes for extended warranties and insurance 181
Extended warranties for brown goods are on offer from a handful of manufacturers 181
Retailer schemes for extended warranties and insurance 183
The vast majority of retailer programs have been set up with a single, external insurance company 183
Ergo Hestia claims the most retailer partnerships 183
followed by Europ Assistance and Warta 184
with three other insurers and one broker (SPB Polska) also involved in this arena 184
Risk coverage of all schemes for extended warranties and insurance 186
Cover for accidental damage is commonly embedded in extended warranties for brown goods 186
Independent distribution channels 186
Market value for extended warranties and insurance 187
Market forecasts to 2017 188
Poland's market for brown goods is forecast to rise gently between 2013 and 2017 188
helping to support the extended warranty market in spite of a slight fall in take-up rates 189
15.0 Portugal 190
Introduction 190
Underlying market value and volume 191
Both the value and volume of sales of brown goods fell slightly between 2009 and 2013 191
Manufacturers' original warranty length and consumer law 192
All manufacturers of brown goods offer a two-year original warranty in Portugal 192
Manufacturer schemes for extended warranties and insurance 193
and a few have arrangements for extending these 193
Retailer schemes for extended warranties and insurance 195
Five external providers compete for extended warranty partnerships with retailers 195
Risk coverage of all schemes for extended warranties and insurance 197
Six out of 12 extended warranty schemes for brown goods include cover for accidental damage 197
Independent distribution channels 197

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