5-year warranty on household appliances or telephony, on optical and audio prostheses, "buy back" programmes in fashion, insurance on skis at Decathlon, buyers' warranty on Vinted. Affinity insurance products and other warranties have become a new complementary and profitable activity for many retailers (on and offline). With the rise of circularity and CSR issues, guarantees are on the rise. These services have become a differentiating element of the offer, with high added value, which nourishes the customer relationship and favours conversion. How far can retailers go into this new territory?
The context
The affinity insurance market in retail (approximately €4.5 billion in turnover in 2021 – source FG2A) has become highly structured over the past 10 years. It responds to a need of the customer, who wants to protect high value products (computer, smartphone, large household appliances) and allows the retailer to increase a value proposition. The most advanced sectors are household appliances, telephony and audio-prosthetics. Some players also have the dual role of insurer and distributor, such as the Carrefour group.
Over the past 10 years, this market has seen its offer develop and gradually gain the confidence of consumers.
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Article authors
Sophie Baqué
Chief Editor of mind Retail