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

1.1 Market overview
1.2 Key findings
1.3 Critical success factors

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

3.1 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

4.1 The direct channel narrowly leads retailers

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

6.1 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

7.1 The cost-of-living crisis will impact consumers’ expenditure

8.1 Abbreviations, acronyms, and initialisms
8.2 Methodology
8.3 Secondary sources
8.4 Further reading

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

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