United Kingdom (UK) Extended Warranty Insurance Market Size, Trends, Competitor Dynamics and Opportunities
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UK Extended Warranty Insurance Market Overview
The estimated UK extended warranty market reached 8.6 million policies in 2022. As restrictions related to the COVID-19 pandemic caused people to work from home, the value of electrical sales increased by more than 6% in 2021.
UK extended warranty insurance market research report analyzes the UK extended warranty insurance market, looking at drivers of uptake for both electrical and motor extended warranties. The report goes on to discuss the distribution landscape in 2022, as well as the claims landscape. Incumbent competitors are analyzed, along with their key partnerships. Future impactors on the market – including the cost-of-living crisis, smart home devices, and the changing working environment – are also examined.
|No of policies (2022)||8.6 million policies|
|Key Extended Warranty Products||· White Goods
· Consumer Electronics
· Small Appliances
|Key Distribution Channels||· Direct
|Key Purchase Methods||· Bought By Post
· Face To Face
· Through The Retailers App
· Online (Smartphone/Tablet)
· Online (Pc/Laptop)
|Key Electrical Retailers||· Currys
· John Lewis & Partners
· The Very Group
· Appliances Direct
|Enquire & Decide||Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.|
The UK Extended Warranty Insurance Market, Segmentation by Extended Warranty Products
The key extended warranty products in the UK extended warranty insurance market are white goods, consumer electronics, motor, and small appliances. White goods has the highest share in the UK extended warranty insurance market in 2022.
The UK Extended Warranty Insurance Market, by Extended Warranty Products (%)
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The UK Extended Warranty Insurance Market, Segmentation by Distribution Channels
The key distribution channels in the UK extended warranty insurance market are direct, retailer, broker, and bank. Together, the direct channel and the retail channel accounted for more than 86% of the distribution of extended warranty insurance in 2021. Traditionally it has been easier to sell policies through retailers as this is done at the POS, which means consumers do not need to search for the product and can have the importance of extended warranty explained to them. Yet the direct channel has managed to remain competitive. This could be a result of consumers looking for more affordable options that perhaps include more specialized cover suited to their needs, as well as the reputation of the insurer.
The UK Extended Warranty Insurance Market, by Distribution Channels (%)
For insights on the key distribution channels, download a free report sample
The UK Extended Warranty Insurance Market, Segmentation by Purchase Methods
The key purchase methods in the UK extended warranty insurance market are bought by post, face to face, through the retailers app, online (smartphone/tablet), online (PC/laptop), and telephone. Many consumers have turned to online purchasing methods for their insurance needs, with more than 49% of policies purchased through PCs, laptops, smartphones, tablets, or apps in 2022.
The UK Extended Warranty Insurance Market, by Purchase Methods (%)
For insights on the key purchase methods, download a free report sample
The UK Extended Warranty Insurance Market, Competitor Analysis
Currys, Amazon, Argos, John Lewis & Partners, Apple, AO, The Very Group, Tesco, Appliances Direct, and Euronics are some of the key electrical retailers in the UK extended warranty insurance market. Currys remained the top electricals retailer in the market with an 18.8% share of revenue in 2022.
Segments Covered in the Report
The UK Extended Warranty Insurance Market Outlook, by Extended Warranty Products
- White Goods
- Consumer Electronics
- Small Appliances
The UK Extended Warranty Insurance Market Outlook, by Distribution Channel
The UK Extended Warranty Insurance Market Outlook by Purchase Methods
- Bought By Post
- Face To Face
- Through The Retailers App
- Online (Smartphone/Tablet)
- Online (Pc/Laptop)
• In 2022e, the number of policies in the UK extended warranty market stood at 8.6 million for all products.
• GlobalData’s 2022 UK Insurance Consumer Survey found that 33%, 38.6%, 25%, and 20.7% of people filed an extended warranty claim for white goods, small appliances, consumer electronics, and motor respectively in 2022.
• Retailers are the most popular channel for electrical products, whereas individuals purchasing extended warranty for motor favor insurers. The majority of purchases are completed online via PC/laptop or smartphone/tablet.
Reasons to Buy
- Analyze growth drivers within the UK extended warranty market.
- Determine areas of concern for insurers and the wider market, including within the claims landscape.
- Recognize the impact of the cost-of-living crisis and inflation on the market.
- Discover the leading players with the extended warranty insurance segment.
- Examine future opportunities and challenges within this space.
Domestic & General
John Lewis & Partners
The Very Group
Currys Group Limited
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
- 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
- 5.1. The total number of extended warranty policies in the UK stands at
- 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
- 9. About GlobalData
- 10. Contact Us
Frequently asked questions
What was the number of the UK extended warranty market policies in 2022?
The estimated UK extended warranty market reached 8.6 million policies in 2022.
Which was the leading extended warranty product in the UK extended warranty market?
White goods have the highest share in the UK extended warranty insurance market in 2022.
Which were the leading distribution channels in the UK extended warranty market?
Together, the direct channel and the retail channel accounted for more than 86% of the distribution of extended warranty insurance in 2021.
Which are the key purchase methods in the UK extended warranty market?
The key purchase methods in the UK extended warranty insurance market are bought by post, face to face, through the retailers’ app, online (smartphone/tablet), online (PC/laptop), and telephone.
Which are the leading electrical retailers in the UK extended warranty market?
Currys, Amazon, Argos, John Lewis & Partners, Apple, AO, The Very Group, Tesco, Appliances Direct, and Euronics are some of the key electrical retailers in the UK extended warranty insurance market.
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