Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in India
NEW YORK, Oct. 23, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in India
http://www.reportlinker.com/p01020598/Extended-Warranties-and-Insurance-for-Mobile-and-Non-Mobile-Consumer-Products-in-India.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Mobile_Telephony
Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in India is about the market for extended warranties and insurance sold in conjunction with white goods, brown goods, grey goods, mobile gadgets and mobile phones in India.
The study draws on extensive primary and secondary research covering 138 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 India.
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 India, and how does it segment between white goods, brown goods, grey goods, mobile gadgets and mobile phones?
- 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 phones, 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 India?
- forecasts for the market size for extended warranties and insurance linked to mobile and non-mobile consumer products up to 2015: 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
1.0 INTRODUCTION 3
What is this report about? 3
Rationale . 3
The market for extended warranties and insurance for consumer products has been little studied 3
Evolving distribution channels both favour and compromise extended warranty provision . 3
Methodology . 4
Manufacturer and retailer survey . 4
The survey's scope covers 138 manufacturers and retailers of mobile and non-mobile consumer products . 4
Market data . 4
Distribution channels for retailers . 5
Bricks-and-mortar retail is still a major factor in the distribution of consumer products in India 5
Definitions . 6
Extended warranties and insurance 6
Extended warranties and insurance linked to consumer products come in a variety of formats… 6
…and are frequently marketed to consumers under alternative titles . 6
Premiums and other revenues . 7
Operating models . 7
PartnerBASE™ and market data annexe . 8
Finaccord 8
2.0 WHITE GOODS 11
Introduction . 11
Underlying market value and volume 12
White good sales almost doubled in value between 2007 and 2011 12
Manufacturers' original warranty length and consumer law. 13
Over half of manufacturers offer more than a one-year warranty for white goods 13
Manufacturer schemes for extended warranties and insurance . 14
Just over half of manufacturers offer an extended warranty on white goods 14
Retailer schemes for extended warranties and insurance . 15
Less than 20% of retailers offer any type of extended warranty on white goods 15
Bajaj Finserv Lending created a specialist warranty division in June 2012 . 15
Risk coverage of all schemes for extended warranties and insurance . 17
Extended warranties for white goods cover technical and mechanical faults only . 17
Independent distribution channels 17
Market value for extended warranties and insurance 18
Market forecasts to 2015 . 19
The white goods market is forecast to experience continued growth through to 2015… . 19
.which will help spur the market for extended warranties . 20
3.0 BROWN GOODS 21
Introduction . 21
Underlying market value and volume 22
The volume of brown goods sales nearly doubled between 2007 and 2011 22
Manufacturers' original warranty length and consumer law. 23
Most manufacturers offer only a one-year warranty for brown goods . 23
Manufacturer schemes for extended warranties and insurance . 24
Almost half of manufacturers of brown goods in India offer some type of extended warranty . 24
Retailer schemes for extended warranties and insurance . 25
Most retailers use internal or captive provision for their extended warranty programs… . 25
…although two make use of external partners to administer and underwrite their coverage . 25
Risk coverage of all schemes for extended warranties and insurance . 27
Schemes provide cover only against technical or mechanical failure . 27
Independent distribution channels 27
Two independent distributors offer third-party coverage for brown goods 27
Market value for extended warranties and insurance 28
Market forecasts to 2015 . 29
India's market for brown goods is predicted to continue to enjoy strong growth. 29
…which should continue to drive growth in the market for extended warranties 30
4.0 GREY GOODS 31
Introduction . 31
Underlying market value and volume 32
India's grey goods market value increased by 30% between 2007 and 2011 32
Manufacturers' original warranty length and consumer law. 33
More than a third of manufacturers include a three-year warranty as standard 33
Manufacturer schemes for extended warranties and insurance . 34
Manufacturers of grey goods that offer extended warranties do so exclusively via internal provision . 34
Retailer schemes for extended warranties and insurance . 35
Only eight retailers maintain an extended warranty program, with most administering it internally . 35
Risk coverage of all schemes for extended warranties and insurance . 37
Only one scheme covers accidental damage to grey goods . 37
Independent distribution channels 37
Market value for extended warranties and insurance 38
Market forecasts to 2015 . 39
The market for grey goods is forecast to carry on growing through to 2015. 39
…which will bring about an increase in the value of the associated warranty market as well 40
5.0 MOBILE GADGETS . 41
Introduction . 41
Underlying market value and volume 42
India's mobile gadget market value and volume both nearly doubled between 2007 and 2011 42
Manufacturers' original warranty length and consumer law. 43
Most manufacturers offer only a one-year warranty for mobile gadgets . 43
Manufacturer schemes for extended warranties and insurance . 44
Manufacturers of mobile gadgets in India adhere exclusively to internal provision 44
Retailer schemes for extended warranties and insurance . 45
Five retailers collaborate with external or joint venture partners to one extent or another. . 45
. with Bajaj Finserv Lending, Oriental Insurance, Tata AIG and United India Insurance all involved . 45
Risk coverage of all schemes for mobile gadget insurance 47
The great majority of coverage is limited to mechanical or technical fault only . 47
Independent distribution channels 48
Multiple options for the coverage of mobile gadgets, especially laptops, are found in India…. 48
…with schemes generally covering technical fault as well as damage, loss and theft . 48
Market value for extended warranties and insurance 49
Market forecasts to 2015 . 50
The mobile gadget market is forecast to continue its strong growth through to 2015. 50
…with the corresponding extended warranty and insurance market forecast to grow commensurately. 51
6.0 MOBILE PHONES 52
Introduction . 52
Underlying market volumes . 53
The volume of mobile phone subscriptions more than tripled between 2007 and 2011. . 53
.while the number of individuals in possession of a mobile phone also experienced very substantial growth 54
Manufacturers' original warranty length and consumer law. 55
Mobile phones are characterised by the shortest overall manufacturers' warranties . 55
Manufacturer schemes for mobile phone insurance 56
Only two manufacturers offer extended mobile phone cover 56
Retailer schemes for mobile phone insurance . 57
Four retailers offer mobile phone insurance but none of them are mobile network operators . 57
Risk coverage of all schemes for mobile phone insurance . 59
Coverage for airtime abuse is not a feature of retailer-distributed insurance programs in India 59
Independent distribution channels 60
Several providers offer third-party mobile phone coverage in India…. 60
…encompassing both traditional warranty coverage as well as mobile phone insurance . 60
Market value for mobile phone insurance . 61
Market forecasts to 2015 . 62
Mobile phone subscriptions are forecast to increase by over 20% between 2011 and 2015. . 62
.which would equate to a penetration rate among consumers reaching 70% 63
Increasing take-up and market penetration should help buoy the mobile phone insurance market 64
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY . 1
Approximate market value for extended warranties and insurance linked to mobile and non-mobile consumer products in India, 2011 and 2015 (forecast) 2
1.0 INTRODUCTION 3
Organisations researched segmented by type . 5
Retailers segmented by distribution channel, 2012 . 6
2.0 WHITE GOODS 11
Comparative length of original warranties offered by manufacturers of white goods in India, 2012 . 13
Manufacturer schemes for extended warranties and insurance linked to white goods in India: provision rates and operating models, 2012 . 14
Retailer schemes for extended warranties and insurance linked to white goods in India: provision rates, operating models and provider share of non-captive partnerships, 2012 . 16
Risk coverage of all schemes for extended warranties and insurance linked to white goods in India, 2012 . 17
Approximate market value for extended warranties and insurance linked to white goods in India, 2011 . 18
Value and volume of sales of white goods in India, 2011 and 2015 (forecast) 19
Forecast market value for extended warranties and insurance linked to white goods in India, 2015 . 20
3.0 BROWN GOODS 21
Comparative length of original warranties offered by manufacturers of brown goods in India, 2012 23
Manufacturer schemes for extended warranties and insurance linked to brown goods in India: provision rates and operating models, 2012 . 24
Retailer schemes for extended warranties and insurance linked to brown goods in India: provision rates, operating models and provider share of non-captive partnerships, 2012 . 26
Risk coverage of all schemes for extended warranties and insurance linked to brown goods in India, 2012 . 27
Approximate market value for extended warranties and insurance linked to brown goods in India, 2011 . 28
Value and volume of sales of brown goods in India, 2011 and 2015 (forecast) . 29
Forecast market value for extended warranties and insurance linked to brown goods in India, 2015 30
4.0 GREY GOODS 31
Comparative length of original warranties offered by manufacturers of grey goods in India, 2012 . 33
Manufacturer schemes for extended warranties and insurance linked to grey goods in India: provision rates and operating models, 2012 . 34
Retailer schemes for extended warranties and insurance linked to grey goods in India: provision rates, operating models and provider share of non-captive partnerships, 2012 . 36
Risk coverage of all schemes for extended warranties and insurance linked to grey goods in India, 2012 . 37
Approximate market value for extended warranties and insurance linked to grey goods in India, 2011 38
Value and volume of sales of grey goods in India, 2011 and 2015 (forecast) 39
Forecast market value for extended warranties and insurance linked to grey goods in India, 2015 . 40
5.0 MOBILE GADGETS . 41
Comparative length of original warranties offered by manufacturers of mobile gadgets in India, 2012 43
Manufacturer schemes for extended warranties and insurance linked to mobile gadgets in India: provision rates and operating models, 2012 . 44
Retailer schemes for extended warranties and insurance linked to mobile gadgets in India: provision rates, operating models and provider share of non-captive partnerships, 2012 . 46
Risk coverage of all schemes for mobile gadget insurance in India, 2012 . 47
Approximate market value for extended warranties and insurance linked to mobile gadgets in India, 2011 . 49
Value and volume of sales of mobile gadgets in India, 2011 and 2015 (forecast) . 50
Forecast market value for extended warranties and insurance linked to mobile gadgets in India, 2015 51
6.0 MOBILE PHONES 52
Volume of mobile phone subscriptions and subscriptions per capita in India, 2007 and 2011 . 53
Number of individuals owning a mobile phone in India and their weighting within the total population, 2007 and 2011 . 54
Comparative length of original warranties offered by manufacturers of mobile phones in India, 2012 . 55
Manufacturer schemes for mobile phone insurance in India: provision rates and operating models, 2012 . 56
Retailer schemes for mobile phone insurance in India: provision rates, operating models and provider share of non-captive partnerships, 2012. 58
Risk coverage of all schemes for mobile phone insurance in India, 2012 59
Approximate market value and policies in force for mobile phone insurance in India, 2011 . 61
Volume of mobile phone subscriptions and subscriptions per capita in India, 2011 and 2015 (forecast). 62
Number of individuals owning a mobile phone in India and their weighting within the total population, 2011 and 2015 (forecast) 63
Forecast market value and policies in force for mobile phone insurance in India, 2015 64
To order this report:
Mobile_Telephony Industry: Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in India
Nicolas Bombourg
Reportlinker
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