United Kingdom (UK) Extended Warranty Insurance Market Size, Trends, Competitor Dynamics and Opportunities

Table of Contents

Table of Contents

1. Executive Summary

• 1.1 Market overview
• 1.2 Key findings
• 1.3 Critical success factors

2. Introduction

• 2.1 Extended warranties provide protection beyond the manufacturer's guarantee
• 2.2 Non-insurance-based service agreements account for the majority of the market
• 2.3 Motor and electrical goods are the core retail sectors for the sale of extended warranties

3. Market Overview

• 3.1 Macroeconomic impacts on the extended warranty market
• 3.2 Retailers and wholesalers are essential to the success of the extended warranty market
• 3.3 The impact of COVID-19 on the extended warranty market

4. How Extended Warranty Insurance is Purchased

• 4.1 The direct channel narrowly leads retailers

5. UK Extended Warranty Market Review: Motor and Electricals

• 5.1 The total number of extended warranty policies in the UK stands at 8.6 million
• 5.2 The motor extended warranty market will face pressures on growth
• 5.3 As new car sales fail to grow, the average age of vehicles has risen
• 5.4 The motor extended warranty market is healthy, with a stable claims environment
• 5.5 The dominance of POS capture is being challenged in the electrical goods extended warranty market
• 5.6 The electrical goods market will remain subdued in 2023
• 5.7 White goods account for the largest share of the electrical goods extended warranty market
• 5.8 The market remains highly competitive but profitable

6. Competitor Dynamics

• 6.1 D&G dominates the extended warranty market for electrical appliances
• 6.2 Manufacturers and warranty providers are extending their timeframes
• 6.3 Threat from alternative providers

7. The Market Going Forward

• 7.1 The cost-of-living crisis will impact consumers' expenditure

8. Appendix

• 8.1 Abbreviations, acronyms, and initialisms
• 8.2 Methodology
• 8.3 Secondary sources
• 8.4 Further reading
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List of Tables

List of Tables

• Table 1: Top electrical retailers in the UK and their underwriting partners

List of Figures

List of Figures

• Figure 1: Real earnings have been falling since Q2 2021
• Figure 2: Over 85% of consumers are concerned about their current financial situation
• Figure 3: Only one in five individuals anticipate being in the office for more than three days a week
• Figure 4: Retailers lead the electricals market, whereas insurers dominate the motor space
• Figure 5: Online purchases are most common among electrical products
• Figure 6: Convenience is the key purchasing driver in the retailer channel
• Figure 7: Insurers' good reputation is the most common reason for purchasing via this channel
• Figure 8: Brokers are typically used because consumers feel they can get a better deal
• Figure 9: The total number of policies stands at 8.6 million for key extended warranty products
• Figure 10: Used car sales are increasing as new car sales fall
• Figure 11: The average age of cars in the UK has consistently increased
• Figure 12: The age of vehicles has been increasing in the UK
• Figure 13: Just under a quarter of individuals report claims for motor extended warranty
• Figure 14: The presence of electric vehicles is increasing within the UK motor parc
• Figure 15: Consumer expenditure on electrical goods is expected to have fallen in 2022
• Figure 16: The price of electricals has been increasing over the last few years
• Figure 17: Consumer electronics made up a third of all electrical sales in 2021
• Figure 18: Most individuals purchase white goods extended warranty for washing machines and clothes dryers
• Figure 19: 56.4% of individuals would not purchase insurance from a mobile operator
• Figure 20: Claims frequency is lowest for consumer electronics devices
• Figure 21: Extended warranties compete with gadget insurance for electricals such as tablets and cameras
• Figure 22: Currys remained the leading retailer of electrical goods in 2022e
• Figure 23: Samsung and Apple could pose a threat to extended warranty providers
• Figure 24: Only 40.4% of individuals expect to work full-time at the office going forward
• Figure 25: Forecasting methodology