Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in Brazil

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 Brazil

http://www.reportlinker.com/p01020600/Extended-Warranties-and-Insurance-for-Mobile-and-Non-Mobile-Consumer-Products-in-Brazil.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Consumer_Electronics

Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in Brazil 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 Brazil.

The study draws on extensive primary and secondary research covering 164 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 Brazil.

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 Brazil, 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 Brazil?

- 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 164 manufacturers and retailers of mobile and non-mobile consumer products 4

Market data 4

Distribution channels for retailers 5

Online-only and mixed retail models dominate the distribution of consumer electronic products in Brazil 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

Sales of white goods grew by over USD 30 billion between 2007 and 2011 12

Manufacturers' original warranty length and consumer law 13

One-year warranties are the standard coverage offered for white goods 13

Brazilian consumer law allows consumers to demand refunds, replacements or discounts 13

Manufacturer schemes for extended warranties and insurance 14

Only three manufacturers offer an extended warranty on white goods… 14

…with domestic warranty specialist Garantec the most prominent partner 14

Retailer schemes for extended warranties and insurance 16

Two thirds of retailers offer extended warranties on white goods 16

A wide variety of operating models are found for retailer extended warranty programs… 16

…although single external partnerships are by far the most common method of provision 16

Risk coverage of all schemes for extended warranties and insurance 18

Coverage for accidental damage is not a common feature of extended warranties 18

Independent distribution channels 18

Extended warranties are available from Garantec away from the point of sale 18

Market value for extended warranties and insurance 19

Market forecasts to 2015 20

The white goods market is forecast to experience continued growth through to 2015… 20

which will help boost the market for extended warranties 21

3 0 BROWN GOODS 22

Introduction 22

Underlying market value and volume 23

The volume of sales of brown goods increased by more than half between 2007 and 2011 23

Manufacturers' original warranty length and consumer law 24

Once again only one manufacturer offers an original warranty of longer than one year 24

Manufacturer schemes for extended warranties and insurance 25

No manufacturer of brown goods in Brazil offers an extended warranty 25

Retailer schemes for extended warranties and insurance 26

Just over a half of retailers promote extended warranties on brown goods… 26

…with the partnerships very similar to those found for white goods 26

Assurant is used by an additional retailer for brown goods in Brazil… 26

…while Cardif joint venture Luizaseg again manages schemes for Magazine Luiza 26

Risk coverage of all schemes for extended warranties and insurance 28

All schemes provide cover against technical or mechanical failure 28

Independent distribution channels 28

Garantec remains the only third-party option for extended warranties for brown goods 28

Market value for extended warranties and insurance 29

Market forecasts to 2015 30

Brazil's market for brown goods is predicted to continue to enjoy strong growth 30

…which should continue to drive growth in the market for extended warranties 31

4 0 GREY GOODS 32

Introduction 32

Underlying market value and volume 33

Brazil's grey goods market value and volume both declined between 2007 and 2011 33

Manufacturers' original warranty length and consumer law 34

More manufacturers offer multi-year warranties for grey goods than they do for brown or white goods 34

Manufacturer schemes for extended warranties and insurance 35

Manufacturers of grey goods that offer extended warranties do so exclusively via internal provision 35

Retailer schemes for extended warranties and insurance 36

External partnership is the preferred extended warranty operating model among grey goods retailers… 36

Risk coverage of all schemes for extended warranties and insurance 38

One third of schemes cover accidental damage to grey goods 38

Independent distribution channels 38

Luma Seguros offers a specialised insurance program for desktop computers 38

Market value for extended warranties and insurance 39

Market forecasts to 2015 40

The market for grey goods is forecast to continue to decline through to 2015 40

…which will translate into a continued contraction of the extended warranty market 41

5 0 MOBILE GADGETS 42

Introduction 42

Underlying market value and volume 43

Brazil's mobile gadget market value doubled between 2007 and 2011 43

Manufacturers' original warranty length and consumer law 44

Almost all manufacturers offer only a one-year warranty for mobile gadgets 44

Manufacturer schemes for extended warranties and insurance 45

Both manufacturer schemes for mobile gadgets in Brazil rely exclusively on internal provision 45

Retailer schemes for extended warranties and insurance 46

More retailers offer coverage for mobile gadgets than for brown or grey goods 46

Risk coverage of all schemes for mobile gadget insurance 48

The great majority of coverage is limited to mechanical or technical fault only 48

Independent distribution channels 49

Brazilian insurer Porto Seguro leads the field for independent mobile gadget cover 49

Market value for extended warranties and insurance 50

Market forecasts to 2015 51

The mobile gadget market is forecast to continue its strong growth through to 2015 51

…with the corresponding extended warranty and insurance market forecast to grow commensurately 52

6 0 MOBILE PHONES 53

Introduction 53

Underlying market volumes 54

The volume of mobile phone subscriptions doubled between 2007 and 2011 54

while the number of individuals in possession of a mobile phone also experienced substantial growth 55

Manufacturers' original warranty length and consumer law 56

No manufacturer of mobile phones offers an original warranty of longer than one year 56

Manufacturer schemes for mobile phone insurance 57

Only Nokia distributes extended mobile phone cover 57

Retailer schemes for mobile phone insurance 58

Just over half of retailers investigated sell extended coverage for mobile phones 58

External providers hold by far the largest share of partnerships… 58

…with Garantec, Cardif and MAPFRE the most frequently named insurers 58

Risk coverage of all schemes for mobile phone insurance 60

Coverage for call fraud or airtime abuse is not a feature of retailer-distributed insurance programs in Brazil 60

Independent distribution channels 61

Coverage options for mobile phones differ slightly from those for mobile gadgets 61

Market value for mobile phone insurance 62

Market forecasts to 2015 63

Mobile phone subscriptions are forecast to increase by almost 20% between 2011 and 2015 63

which would equate to a penetration rate among consumers reaching 80% 64

Increasing take-up and market penetration should help buoy the mobile phone insurance market 65

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 Brazil, 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 Brazil, 2012 13

Manufacturer schemes for extended warranties and insurance linked to white goods in Brazil: provision rates, operating models and provider share of non-captive partnerships, 2012 15

Retailer schemes for extended warranties and insurance linked to white goods in Brazil: provision rates, operating models and provider share of non-captive partnerships, 2012 17

Risk coverage of all schemes for extended warranties and insurance linked to white goods in Brazil, 2012 18

Approximate market value for extended warranties and insurance linked to white goods in Brazil, 2011 19

Value and volume of sales of white goods in Brazil, 2011 and 2015 (forecast) 20

Forecast market value for extended warranties and insurance linked to white goods in Brazil, 2015 21

3 0 BROWN GOODS 22

Comparative length of original warranties offered by manufacturers of brown goods in Brazil, 2012 24

Retailer schemes for extended warranties and insurance linked to brown goods in Brazil: provision rates, operating models and provider share of non-captive partnerships, 2012 27

Risk coverage of all schemes for extended warranties and insurance linked to brown goods in Brazil, 2012 28

Approximate market value for extended warranties and insurance linked to brown goods in Brazil, 2011 29

Value and volume of sales of brown goods in Brazil, 2011 and 2015 (forecast) 30

Forecast market value for extended warranties and insurance linked to brown goods in Brazil, 2015 31

4 0 GREY GOODS 32

Comparative length of original warranties offered by manufacturers of grey goods in Brazil, 2012 34

Manufacturer schemes for extended warranties and insurance linked to grey goods in Brazil: provision rates and operating models, 2012 35

Retailer schemes for extended warranties and insurance linked to grey goods in Brazil: provision rates, operating models and provider share of non-captive partnerships, 2012 37

Risk coverage of all schemes for extended warranties and insurance linked to grey goods in Brazil, 2012 38

Approximate market value for extended warranties and insurance linked to grey goods in Brazil, 2011 39

Value and volume of sales of grey goods in Brazil, 2011 and 2015 (forecast) 40

Forecast market value for extended warranties and insurance linked to grey goods in Brazil, 2015 41

5 0 MOBILE GADGETS 42

Comparative length of original warranties offered by manufacturers of mobile gadgets in Brazil, 2012 44

Manufacturer schemes for extended warranties and insurance linked to mobile gadgets in Brazil: provision rates and operating models, 2012 45

Retailer schemes for extended warranties and insurance linked to mobile gadgets in Brazil: provision rates, operating models and provider share of non-captive partnerships, 2012 47

Risk coverage of all schemes for mobile gadget insurance in Brazil, 2012 48

Approximate market value for extended warranties and insurance linked to mobile gadgets in Brazil, 2011 50

Value and volume of sales of mobile gadgets in Brazil, 2011 and 2015 (forecast) 51

Forecast market value for extended warranties and insurance linked to mobile gadgets in Brazil, 2015 52

6 0 MOBILE PHONES 53

Volume of mobile phone subscriptions and subscriptions per capita in Brazil, 2007 and 2011 54

Number of individuals owning a mobile phone in Brazil and their weighting within the total population, 2007 and 2011 55

Comparative length of original warranties offered by manufacturers of mobile phones in Brazil, 2012 56

Manufacturer schemes for mobile phone insurance in Brazil: provision rates and operating models, 2012 57

Retailer schemes for mobile phone insurance in Brazil: provision rates, operating models and provider share of non-captive partnerships, 2012 59

Risk coverage of all schemes for mobile phone insurance in Brazil, 2012 60

Approximate market value and policies in force for mobile phone insurance in Brazil, 2011 62

Volume of mobile phone subscriptions and subscriptions per capita in Brazil, 2011 and 2015 (forecast) 63

Number of individuals owning a mobile phone in Brazil and their weighting within the total population, 2011 and 2015 (forecast) 64

Forecast market value and policies in force for mobile phone insurance in Brazil, 2015 65

To order this report:

Consumer_Electronics Industry: Extended Warranties and Insurance for Mobile and Non-Mobile Consumer Products in Brazil

Nicolas Bombourg
Reportlinker
Email: [email protected]
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