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

·       Motor

·       Small Appliances

 

Key Distribution Channels ·       Direct

·       Retailer

·       Broker

·       Bank

 

 

Key Purchase Methods ·       Bought By Post

·       Face To Face

·       Through The Retailers App

·       Online (Smartphone/Tablet)

·       Online (Pc/Laptop)

·       Telephone

 

Key Electrical Retailers ·       Currys

·       Amazon

·       Argos,

·       John Lewis & Partners

·       Apple

·       AO

·       The Very Group

·       Tesco

·       Appliances Direct

·       Euronics

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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 (%)

The UK Extended Warranty Insurance Market, by Extended Warranty Products (%)

For insights on the UK extended warranty products, download a free report sample

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 (%)

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 (%)

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
  • Motor
  • Small Appliances

The UK Extended Warranty Insurance Market Outlook, by Distribution Channel

  • Direct
  • Retailer
  • Broker
  • Bank

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)
  • Telephone

Scope

• 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.

WarrantyWise
Kia
Toyota
Curry’s
Domestic & General
Bosch
Argos
MediaMarkt
Amazon
Apple
John Lewis & Partners
AO
The Very Group
Tesco
Appliances Direct
Euronics
Currys Group Limited
Assurant
AIG
Tesco underwriting
MB&G Limited
LHV Kindlustus
RAC

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

  • 9. About GlobalData
  • 10. Contact Us

Table

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

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

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