Press release extended warranties and insurance for mobile and non mobile consumer products-global
Mobile products and emerging markets lead the way in the global market for extended warranties and insurance related to consumer electronics.
Published on: Mar 4, 2016
Transcripts - Press release extended warranties and insurance for mobile and non mobile consumer products-global
PRESS RELEASE Mobile products and emerging markets lead the way in the global market for extended warranties and insurance related to consumer electronicsResearch from 30 countries shows continued growth in coverage for mobile phones and gadgetsLondon, 18 March 2013 - On-going research from Finaccord shows that the global market for extendedwarranties and related insurance for consumer products (other than cars) is leaning away from traditionalappliances and consumer electronics, such as white goods, brown goods and desktop computers, andtowards a new generation of portable and mobile goods, including mobile phones, laptop computers andtablets.In total, Finaccord has surveyed 1,795 retailers and 275 manufacturers in recent months, operating in 30countries around the globe, revealing over 3,500 different schemes for extended warranties and productinsurance. The schemes divide fairly evenly between mobile and non-mobile products, with around 60%representing coverage for brown, grey and white goods and around 40% involving mobile phone or gadgetprotection.Finaccord estimates the global market for extended warranties and insurance related to consumerelectronics and appliances to have been worth in the region of USD 19.4 billion in 2012. "Out of this figure,five countries – namely, Brazil, France, Germany, the UK and the US – accounted for approximately 62.6%of global revenue or approximately USD 12.2 billion," said Edward Wilford, Consultant with Finaccord. Allother countries combined were estimated by Finaccord to feature markets worth a combined total of USD7.3 billion for 2012. "This shows the extent to which the global market has historically been tilted toward afew major national markets."Specifically, the US is estimated to have been the worlds largest market for extended warranties andrelated product insurance in 2012, with gross written premiums and other revenues reaching a total of USD5.7 billion, followed by the UK at USD 2.4 billion, France at USD 1.6 billion, Brazil at USD 1.3 billion, andGermany at USD 1.1 billion.However, for future years, Finaccord projects a narrowing of the divide between the most establishedmarkets and the rest of the world, driven by growth in emerging markets, and especially in mobile goods.From 2012 to 2016, Finaccord forecasts the global market for extended warranties and insurance toincrease by almost a third, growing to USD 25.5 billion. The portion of this figure held by the top fivecountries (which are projected to be unchanged through 2016) is forecast to increase by 24.1%, while theremainder of the market is predicted to increase by 44.0% over the same period.In detail, the US market is predicted to increase to USD 7.1 billion in 2016, followed by the UK market atUSD 2.8 billion, France at USD 2.1 billion, Brazil at USD 1.9 billion, and Germany at USD 1.3 billion. Ofthese countries, Brazil is forecast to experience the greatest annual increase, with a nominal compoundgrowth rate of 9.1% between 2012 and 2016, while the UK is predicted to show the slowest growth out ofthe top five countries, at 3.7%. "The rest of the world combined is predicted to grow at a nominal compoundrate of 9.5% annually, as less-established markets such as China and Mexico come into their own," EdwardWilford said. "This will more than match the combined growth rate of the top five countries, which ispredicted to reach 5.6% annually."Finaccord predicts that this growth in revenue will be driven primarily by an increase in the market forcoverage related to mobile phones and gadgets. From 2012 to 2016, the global market for extendedwarranties and insurance for mobile goods is expected to surge from USD 10.0 billion to USD 14.6 billion,an increase of 46.3%. Over the same period, the market for extended coverage of non-mobile white, brownand grey goods is predicted to grow by 15.9%, from USD 9.4 billion to USD 10.9 billion. "The market formobile goods is rising at almost three times the rate as the market for non-mobile goods," Edward Wilfordsaid. "It is this increase that can be expected to spur growth in both established and emerging markets overthe foreseeable future." --- END ---
Media contact: Roberto Napolitano, +44 (0)20 3008 4406, firstname.lastname@example.orgFinaccord is a market research, publishing and consulting company specialising in financial services. Itprovides its clients with insight into and information about major issues in financial services in the UK,Europe and globally, with a particular focus on marketing and distribution topics such as affinity marketing,bancassurance and strategic alliances.Countries covered by the Global Extended Warranties and Insurance for Mobile and Non-Mobile ConsumerProducts series are Argentina, Australia, Austria, Belgium, Brazil, Canada, China, the Czech Republic,Denmark, Finland, France, Germany, India, Ireland, Italy, Malaysia, Mexico, the Netherlands, Norway,Poland, Portugal, Romania, Russia, South Africa, Spain, Sweden, Switzerland, Turkey, the UK and the US.Sample graphics from the research, showing respectively the global gross written premiums and otherrevenues for extended warranties and insurance for consumer products, segmented by the top five nationalmarkets and all other countries, and between mobile and non-mobile goods in 2012 (estimated) and 2016(forecast). Worldwide gross written premiums and other revenues for extended warranties and insurance for consumer products, segmented by the top five national and other markets, 2012 (estimated) and 2016 (forecast) USD billion 30 t 25 Rest of world 20 Germany Brazil 15 France 10 UK 5 USA 0 2012 2016 Note – analysis covers extended warranties and related insurance sold in conjunction with white, brown and grey goods plus mobile gadgets and phones but not cars or other vehicles. Source: Finaccord
Worldwide gross written premiums and other revenues for extended warranties and insurance for consumer products, segmented by mobile and non-mobile goods, 2012 (estimated) and 2016 (forecast) USD billion 30 25 20 T 15 Mobile 10 Non-mobile 5 0 2012 2016Note – analysis covers extended warranties and related insurance sold in conjunction with white,brown and grey goods plus mobile gadgets and phones but not cars or other vehicles.Source: Finaccord