1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Extended Warranties and Insurance for Grey Goods in Europe

Extended Warranties and Insurance for Grey Goods in Europe is a report about the market for extended warranties and insurance sold in conjunction with grey 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. Grey goods are defined as desktop computers and computer peripherals such as non-mobile games consoles, printers and scanners. Related extended warranties and insurance always cover 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 close to 1,000 organisations involved in the production and distribution of grey goods including manufacturers, specialised retailers of consumer electronics, supermarket / hypermarket brands, department stores, variety retailers and other types of retailer (e.g. retailers of books and media products).

Table Of Contents

Extended Warranties and Insurance for Grey 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 grey 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 grey goods fell by more than 7% between 2009 and 2013 12
The value of this market in both France and the UK is higher than it is in Germany 13
Provision of extended warranties and insurance by manufacturers and retailers 16
Retailer extended warranty and insurance schemes are more numerous than manufacturer programs 16
Retailers selling both offline and online are most likely to promote cover for grey goods… 18
… with online-only retailers the least likely to have organised a scheme 18
Manufacturer schemes for extended warranties and insurance 20
Manufacturers of grey goods in the UK are most likely to have a scheme up and running 20
Some manufacturers utilise an external provider for the insurance elements of their programs… 20
… as epitomised by the links of The Warranty Group with Acer, Dell and Packard Bell 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 three countries 25
The leading partners of retailers are a mixture of specialised and multi-line providers… 28
… including Allianz, AXA, Domestic and General, ERGO, Estendo, GARANZIA3 and SPB 28
Analysis for manufacturer and retailer schemes combined 30
Across all types of scheme, The Warranty Group leads the unweighted analysis… 30
… but is overtaken by five other players in the weighted computation 30
Risk coverage of all schemes for extended warranties and insurance 32
Cover for accidental damage has increased as a feature of policies protecting grey goods… 32
… and is especially visible in Austria and Sweden but least so in Belgium and Romania 32
Independent distribution channels 34
Independent providers of stand-alone grey goods cover are active in 11 out of the 20 countries 34
Market value for extended warranties and insurance 35
Take-up rates for extended warranties for grey goods may have declined 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 an overall decrease in the pan-European market value… 37
… although five countries could have bucked this trend 38
Relative to the value of its underlying grey goods sector, one market stands out as especially developed 40
Market forecasts to 2017 42
Decline in the underlying market value and volume is destined to continue through to 2017… 42
… in all countries other than two 42
Overall take-up rates for extended warranties for grey goods may edge back further 45
Thus, the market for extended warranties for grey goods is unlikely to grow… 47
and neither will its country-by-country segmentation change much 48
Key data tables 50
3.0 AUSTRIA 53
Introduction 53
Underlying market value and volume 54
The value of the grey goods market slipped back between 2009 and 2013 54
Manufacturers' original warranty length and consumer law 55
Acer and Brother are unusual in offering three-year original warranties in Austria 55
Manufacturer schemes for extended warranties and insurance 56
AmTrust and London General Insurance are the only visible external partners used by manufacturers 56
Retailer schemes for extended warranties and insurance 58
High retailer provision rates are visible for extended warranties for grey goods 58
itonia claims the most partnerships albeit they are not necessarily the most valuable ones 58
Assona was bought by SchneiderGolling and Cie in March 2013 59
Risk coverage of all schemes for extended warranties and insurance 60
A large majority of extended warranty programs for grey goods include cover for accidental damage 60
Independent distribution channels 60
Stand-alone cover for printers and routers is available from one major multiline insurer 60
Market value for extended warranties and insurance 61
Market forecasts to 2017 62
Further shrinkage in the value of the grey goods market is probable between 2013 and 2017 62
…which will cause the related extended warranty market to become even smaller 63
4.0 BELGIUM 64
Introduction 64
Underlying market value and volume 65
The value of Belgium's grey goods market fell by around EUR 60 million between 2009 and 2013 65
Manufacturers' original warranty length and consumer law 66
The original warranty of five manufacturers is limited to just one year in length 66
Manufacturer schemes for extended warranties and insurance 67
Over a half of manufacturers run extended warranty schemes for grey goods in Belgium 67
London General Insurance is the one external partner visible in this arena 67
Retailer schemes for extended warranties and insurance 69
Retailers of grey goods in Belgium adhere mainly to internally-managed extended warranty programs… 69
… with just one external provider claiming a partnership 69
CAP.Protection was acquired by SPB in March 2014 and is being merged into SPB Belgium 71
Risk coverage of all schemes for extended warranties and insurance 71
Most schemes focus purely on cover for technical failure 71
Independent distribution channels 71
Market value for extended warranties and insurance 72
Market forecasts to 2017 73
A further reduction in the value of the grey goods market is predicted from 2013 to 2017… 73
…which clouds the outlook for the associated extended warranty market 74
5.0 CZECH REPUBLIC 75
Introduction 75
Underlying market value and volume 76
The expenditure by Czech consumers on grey goods dipped below CSK 5.5 billion in 2013 76
Manufacturers' original warranty length and consumer law 77
Xbox is the only manufacturer to deviate from offering a two-year factory warranty 77
Manufacturer schemes for extended warranties and insurance 78
AmTrust and London General Insurance both hold partnerships with manufacturers 78
Retailer schemes for extended warranties and insurance 80
The internally-managed program of Datart is likely to be one of the largest in this field 80
Risk coverage of all schemes for extended warranties and insurance 82
Cover for accidental damage is available in a narrow majority of programs 82
Independent distribution channels 82
There is one independent option for Czech consumers seeking to acquire cover for grey goods 82
Market value for extended warranties and insurance 83
Market forecasts to 2017 84
By 2017, the annual sales volume of products classifiable as grey goods will have dropped to 1.5 million… .. 84
… thereby pushing back further the value of the related extended warranty market 85
6.0 DENMARK 86
Introduction 86
Underlying market value and volume 87
Danish consumers bought around 2 million items classifiable as grey goods in 2013 87
Manufacturers' original warranty length and consumer law 88
A half of manufacturers of grey goods offer a factory warranty lasting two years in Denmark 88
Manufacturer schemes for extended warranties and insurance 89
AmTrust, ANV and London General Insurance all work with manufacturers of grey goods 89
Retailer schemes for extended warranties and insurance 91
Multiple competitors possess one retailer partnership each in the grey goods extended warranty sector 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
Cover for accidental damage is normally available in extended warranty programs for grey goods 93
Independent distribution channels 93
Market value for extended warranties and insurance 94
Market forecasts to 2017 95
Between 2013 and 2017, the grey goods market value could fall by around 2.5% 95
… although a fall in the overall take-up rate would cause a larger decline in the extended warranty sector 96
7.0 FINLAND 97
Introduction 97
Underlying market value and volume 98
As elsewhere in Europe, consumers in Finland are spending less on products classed as grey goods 98
Manufacturers' original warranty length and consumer law 99
Most manufacturers offer original warranties for grey goods lasting two years or more… 99
Manufacturer schemes for extended warranties and insurance 100
… and many also offer to extend these 100
London General Insurance holds the highest number of manufacturer partnerships 100
Retailer schemes for extended warranties and insurance 102
Half a dozen retailer-sponsored extended warranty schemes are in evidence 102
Risk coverage of all schemes for extended warranties and insurance 104
Most extended warranty programs for grey goods lack cover for the risk of accidental damage 104
Independent distribution channels 104
Market value for extended warranties and insurance 105
Market forecasts to 2017 106
A further retreat in the underlying market for grey goods is likely to occur between 2009 and 2017… 106
… and the value of the related extended warranty market will also contract 107
8.0 FRANCE 108
Introduction 108
Underlying market value and volume 109
The value of the grey goods market fell back slightly between 2009 and 2013 109
Manufacturers' original warranty length and consumer law 110
A majority of grey goods manufacturers limit themselves to offering one-year original warranties… 110
Manufacturer schemes for extended warranties and insurance 111
… albeit over a half run extended warranty schemes 111
with two international insurers and one broker active as partners of manufacturers 111
Most manufacturer programs are run on an internal basis 113
Retailer schemes for extended warranties and insurance 113
Over two thirds of grey goods retailers investigated promote extended warranty schemes… 113
with a variety of different operating models in evidence 114
SPB was mentioned most frequently by retailers of grey goods in France 114
Underwriters owned by AXA are prominent as are CARMA, Domestic and General and GAN Eurocourtage .. 114
CARMA claims the highest weighted share of partnerships in a very fragmented sector 116
AssurOne welcomed Anacap Financial Partners as an equity investor in June 2014 116
Risk coverage of all schemes for extended warranties and insurance 117
Nearly a half of extended warranty schemes include cover for accidental damage 117
Independent distribution channels 118
Alternative providers include online specialist Direxi through its 'garantie des biens du foyer' 118
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 120
The market for grey goods is likely to continue shrinking in value between 2013 and 2017 120
…thereby causing a further decline in the associated extended warranty market 121
9.0 GERMANY 122
Introduction 122
Underlying market value and volume 123
The value and volume of the grey goods market both slipped back sharply between 2009 and 2013 123
Manufacturers' original warranty length and consumer law 124
Two-year original warranties are the norm among manufacturers of grey goods in Germany 124
Manufacturer schemes for extended warranties and insurance 125
Extended warranty schemes are run by 11 of the 24 manufacturers investigated… 125
… although London General Insurance and AmTrust are the only external partners 125
Retailer schemes for extended warranties and insurance 127
Around one third of retailers surveyed operate extended warranty programs 127
In terms of unweighted partnerships, Domestic and General and Wertgarantie are the market leaders… 127
… although itonia and ERGO are most prominent in the weighted analysis 127
Domestic and General's revenues in Germany have been expanding quite rapidly 129
Wertgarantie sold more than 50,000 new policies in 2013 relative to new sales in the previous year 129
Risk coverage of all schemes for extended warranties and insurance 130
More than half of extended warranty programs for grey goods include cover for accidental damage 130
Independent distribution channels 130
In this and other areas, Friendsurance-Alecto has introduced the concept of online peer-to-peer insurance . 130
Market value for extended warranties and insurance 131
Market forecasts to 2017 132
The market for grey goods is likely to carry on shrinking between 2013 and 2017 132
…which is likely to translate into a further decline in the associated extended warranty and insurance market 133
10.0 IRELAND 134
Introduction 134
Underlying market value and volume 135
Ireland's grey goods market has experienced the same structural change as witnessed in other countries .. 135
Manufacturers' original warranty length and consumer law 136
Most original warranties are limited to a duration of just one year 136
Manufacturer schemes for extended warranties and insurance 137
Both AmTrust and London General Insurance are used as external partners by manufacturers… 137
Retailer schemes for extended warranties and insurance 139
… with both AIG and Domestic and General featuring among retailers 139
Risk coverage of all schemes for extended warranties and insurance 141
Most extended warranty programs for grey goods are limited to cover for technical faults 141
Independent distribution channels 141
Cover for modems is available from one independent provider 141
Market value for extended warranties and insurance 142
Market forecasts to 2017 143
A further reduction in the market for grey goods is predicted between 2013 and 2017 143
…which will cause the associated extended warranty market to diminish too 144
11.0 ITALY 145
Introduction 145
Underlying market value and volume 146
The value of the grey goods market slipped back slightly between 2009 and 2013 146
Manufacturers' original warranty length and consumer law 147
Two-year original warranties are the norm among grey goods manufacturers in Italy 147

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 Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
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. ...

Personal Accident and Health Insurance in Germany, Key Trends and Opportunities to 2019

Personal Accident and Health Insurance in Germany, Key Trends and Opportunities to 2019

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

Synopsis Timetric’s 'Personal Accident and Health Insurance in Germany, Key Trends and Opportunities to 2019' report provides detailed analysis of the market trends, drivers, challenges in the German ...


Download Unlimited Documents from Trusted Public Sources

Insurance Industry in the US

  • November 2016
    18 pages
  • Insurance  

    Insurance  

  • United States  

View report >

The future of the Insurance Industry in China

  • October 2016
    32 pages
  • Business Insura...  

    Insurance  

    General Insuran...  

  • China  

    Asia  

View report >

Insurance Industry in the US - Forecast

  • September 2016
    18 pages
  • Insurance  

    Insurance  

  • United States  

View report >

Related Market Segments :

Product Liability Insurance
Insurance

ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

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