This report titled Extended Warranties and Insurance for Mobile and Non-Mobile
Consumer Products in Germany is about the market for extended warranties and
insurance sold in conjunction with white goods, brown goods, grey goods,
mobile gadgets and mobile telephones in Germany. The study draws on extensive
primary and secondary research covering 141 organisations involved in the
production and distribution of mobile and non-mobile consumer products
including manufacturers, mainstream mobile network operators, mobile virtual
network operators (MVNOs), specialised retailers of consumer electronics,
supermarkets and other types of retailer (namely, department stores, DIY
outlets, speciality retailers and variety retailers). Hence, it provides a
comprehensive overview of this activity across Germany. Key features of this
publication include: - quantification of the market size for extended
warranties and insurance linked to mobile and non-mobile consumer products:
how much is the market likely to be worth in Germany, and how does it segment
between white goods, brown goods, grey goods, mobile gadgets and mobile
telephones? - analysis of extended warranty underwriters and brokers that
have established scheme relationships with manufacturers and retailers of
white goods, brown goods, grey goods, mobile gadgets and mobile telephones,
including their unweighted share of partnerships; - consideration of the
potential for cross-selling stand-alone extended warranty and insurance
policies through independent channels that are separate from either
manufacturers or retailers: does an emerging market exist for this form of
distribution in Germany? - forecasts for the market size for extended
warranties and insurance linked to mobile and non-mobile consumer products up
to 2014: assuming no significant changes in the number of manufacturer and
retailer schemes, what factors will cause this sector to grow or decline in
the next few years?
Table of Contents
0.0 EXECUTIVE SUMMARY
1.0 INTRODUCTION
What is this report about?
Rationale
Most published data focuses disproportionately on the underlying
consumer product markets ignoring the fact that manufacturers and retailers
can make large profits from insurance schemes
Evolving distribution channels both favour and compromise extended
warranty provision
Methodology
Manufacturer and retailer survey
The survey extends to 141 manufacturers and retailers of mobile and
non-mobile consumer products
Market data
Definitions
Extended warranties and insurance
Extended warranties and insurance linked to consumer products come in
a variety of formats and are frequently marketed to consumers under
alternative titles
Operating models
PartnerBASE™
Finaccord
2.0 WHITE GOODS
Introduction
Underlying market value and volume.
The volume of sales of white goods experienced steady growth between
2006 and 2010
Manufacturer schemes for extended warranties and insurance
Domestic & General and Wertgarantie both possess partnerships with
manufacturers in Germany
Retailer schemes for extended warranties and insurance
Exactly a half of the major retailers surveyed have introduced an
extended warranty scheme
Having previously acted as a tied agent for AXA, assona now operates as
a broker
Domestic & General laid claim to a portfolio of 1.8 million contracts in
Germany by March 2011
ERGO Direkt started an affinity partnership with Amazon in April 2011
SPB Garant possesses co-operation agreements with around 10,000 retailer
outlets in Germany
Wertgarantie grew its revenues by more than 10% during 2010
Risk coverage of all schemes for extended warranties and insurance
Most schemes provide cover for mechanical or technical breakdown only
Independent distribution channels
AXA underwrites stand-alone extended warranties that are marketed
through an independent website
Market value for extended warranties and insurance
Market forecasts to 2014
The white goods market is expected to continue its modest growth
trajectory up to 2014
which will also help the extended warranty market to increase in value
3.0 BROWN GOODS
Introduction
Underlying market value and volume.
The value of sales of brown goods was almost a quarter higher in 2010
than in 2006
Manufacturer schemes for extended warranties and insurance
A substantial minority of manufacturers operate their own extended
warranty programs
Retailer schemes for extended warranties and insurance
There are several competitors to Domestic & General and Wertgarantie in
Germany
Risk coverage of all schemes for extended warranties and insurance
Most schemes provide cover for mechanical or technical breakdown only
Independent distribution channels
Distribution is not limited to manufacturers and retailers of brown goods
Market value for extended warranties and insurance
Market forecasts to 2014
The brown goods market is forecast to remain virtually static in value
terms between 2010 and 2014
while the value of the extended warranty market will register a modest
increase
4.0 GREY GOODS
Introduction
Underlying market value and volume.
The volume of sales grew significantly between 2006 and 2010
Manufacturer schemes for extended warranties and insurance
More than a half of manufacturers surveyed operate their own extended
warranty program
Retailer schemes for extended warranties and insurance
In terms of its number of relationships with major retailers, Domestic &
General is the market leader
Risk coverage of all schemes for extended warranties and insurance
12 schemes provide cover for accidental damage in addition to mechanical
or technical breakdown
Independent distribution channels
Consumers in Germany can take out stand-alone extended warranties via a
number of websites
Market value for extended warranties and insurance
Market forecasts to 2014
The value of the grey goods market is forecast to have slipped further
by 2014
with the value of related extended warranties and insurance also
falling back
5.0 MOBILE GADGETS
Introduction
Underlying market value and volume.
Sales of mobile gadgets have experienced strong growth both in terms of
volumes and values
Manufacturer schemes for mobile gadget insurance
Close to half of all manufacturers in Germany offer mobile gadget
policies to their customers
Retailer schemes for mobile gadget insurance
More than half of all retailers of mobile gadgets in Germany sell
associated insurance
Risk coverage of all schemes for mobile gadget insurance
Cover for technical breakdown is the most common feature of mobile
gadget insurance
Independent distribution channels
Consumers in Germany can take out stand-alone extended warranties via a
number of websites
Market value for mobile gadget insurance
Market forecasts to 2014
The value of the mobile gadget market is forecast to have expanded
further by 2014
boosting growth in the market for mobile gadget insurance
6.0 MOBILE TELEPHONES
Introduction
Underlying market volumes
Mobile telephone subscriptions per capita increased by almost one third
between 2006 and 2010
pushing up the number of individuals with a mobile telephone to around
74.5 million
Manufacturer schemes for mobile telephone insurance
Retailer schemes for mobile telephone insurance
Retailers use a variety of operating models for mobile telephone
insurance in Germany
Risk coverage of all schemes for mobile telephone insurance
Mobile telephone insurance policies in Germany may provide cover for a
variety of risks
Independent distribution channels
European Warranty Partners is one of two providers of stand-alone mobile
telephone cover in Germany
Market value for mobile telephone insurance
Market forecasts to 2014
The number of mobile telephone subscriptions in Germany is forecast to
rise further
although the number of individuals owning mobile phones is unlikely to
increase
Growth in the market for mobile telephone insurance will be driven
mainly by higher prices
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY
Approximate market value for extended warranties and insurance linked to
mobile and non-mobile consumer products in Germany, 2010 and 2014 (forecast)
1.0 INTRODUCTION
Organisations researched segmented by type
2.0 WHITE GOODS
Value and volume of sales of white goods in Germany, 2006 and 2010
Manufacturer schemes for extended warranties and insurance linked to white
goods in Germany: provision rates, operating models and provider share of
non-captive partnerships, 2011
Retailer schemes for extended warranties and insurance linked to white
goods in Germany: provision rates, operating models and provider share of
non-captive partnerships, 2011
Risk coverage of all schemes for extended warranties and insurance linked
to white goods in Germany, 2011
Approximate market value for extended warranties and insurance linked to
white goods in Germany, 2010
Value and volume of sales of white goods in Germany, 2010 and 2014
(forecast)
Forecast market value for extended warranties and insurance linked to
white goods in Germany, 2014
3.0 BROWN GOODS
Value and volume of sales of brown goods in Germany, 2006 and 2010
Manufacturer schemes for extended warranties and insurance linked to brown
goods in Germany: provision rates, operating models and provider share of
non-captive partnerships, 2011
Retailer schemes for extended warranties and insurance linked to brown
goods in Germany: provision rates, operating models and provider share of
non-captive partnerships, 2011
Risk coverage of all schemes for extended warranties and insurance linked
to brown goods in Germany, 2011
Approximate market value for extended warranties and insurance linked to
brown goods in Germany, 2010
Value and volume of sales of brown goods in Germany, 2010 and 2014
(forecast)
Forecast market value for extended warranties and insurance linked to
brown goods in Germany, 2014
4.0 GREY GOODS
Value and volume of sales of grey goods in Germany, 2006 and 2010
Manufacturer schemes for extended warranties and insurance linked to grey
goods in Germany: provision rates, operating models and provider share of
non-captive partnerships, 2011
Retailer schemes for extended warranties and insurance linked to grey
goods in Germany: provision rates, operating models and provider share of
non-captive partnerships, 2011
Risk coverage of all schemes for extended warranties and insurance linked
to grey goods in Germany, 2011
Approximate market value for extended warranties and insurance linked to
grey goods in Germany, 2010
Value and volume of sales of grey goods in Germany, 2010 and 2014
(forecast)
Forecast market value for extended warranties and insurance linked to grey
goods in Germany, 2014
5.0 MOBILE GADGETS
Value and volume of sales of mobile gadgets in Germany, 2006 and 2010
Manufacturer schemes for mobile gadget insurance in Germany: provision
rates, operating models and provider share of non-captive partnerships, 2011
Retailer schemes for mobile gadget insurance in Germany: provision rates,
operating models and provider share of non-captive partnerships, 2011
Risk coverage of all schemes for mobile gadget insurance in Germany, 2011
Approximate market value for mobile gadget insurance in Germany, 2010
Value and volume of sales of mobile gadgets in Germany, 2010 and 2014
(forecast)
Forecast market value for mobile gadget insurance in Germany, 2014
6.0 MOBILE TELEPHONES
Volume of mobile telephone subscriptions and subscriptions per capita in
Germany, 2006 and 2010
Number of individuals owning a mobile telephone in Germany and their
weighting within the total population, 2006 and 2010
Manufacturer schemes for mobile telephone insurance in Germany: provision
rates and operating models, 2011
Retailer schemes for mobile telephone insurance in Germany: provision
rates, operating models and provider share of non-captive partnerships, 2011
Risk coverage of all schemes for mobile telephone insurance in Germany,
2011
Approximate market value and policies in force for mobile telephone
insurance in Germany, 2010
Volume of mobile telephone subscriptions and subscriptions per capita in
Germany, 2010 and 2014 (forecast)
Number of individuals owning a mobile telephone in Germany and their
weighting within the total population, 2010 and 2014 (forecast)
Forecast market value and policies in force for mobile telephone insurance
in Germany, 2014
