TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY INTRODUCTION... 4 What is this report about?... 4 Rationale... 4

Transcription

1 TABLE OF CONTENTS 0.0 EXECUTIVE SUMMARY INTRODUCTION... 4 What is this report about?... 4 Rationale... 4 Evolving distribution channels both favour and compromise extended warranty provision... 4 Methodology... 4 Manufacturer and retailer survey... 4 The survey's scope covers the vast majority of significant manufacturers and retailers of mobile phones... 4 Distribution channels for retailers... 5 Market data... 5 Exchange rates... 5 Definitions... 7 Extended warranties and insurance... 7 Extended warranties and insurance linked to consumer products come in a variety of formats... 7 and are frequently marketed to consumers under alternative titles... 7 Premiums and other revenues... 8 Operating models... 8 Weighted shares... 8 PartnerBASE and market data annexe... 9 Finaccord EUROPEAN OVERVIEW Introduction Underlying market volumes Across 20 European countries, mobile phone subscriptions exceeded 930 million in There are more than twice as many mobile phone subscriptions in Russia than in the next closest country Mobile phone subscriptions per capita are highest in Finland and lowest in Turkey More than 80% of the total population across the 20 countries owns at least one mobile handset Mobile handset penetration is lower in countries with a higher proportion of children in the total population On a Europe-wide basis, post-paid (contract) mobile subscriptions are poised to overtake prepaid ones and they already account for a majority of subscriptions in 12 out of 20 countries The increase in smartphone penetration has been a key driver of rising insurance take-up rates Provision of extended warranties and insurance by manufacturers and retailers Schemes set up by mobile network operators and retailers greatly outnumber those from manufacturers and involvement rates are highest among mobile network operators and specialised retailers of consumer electronic products Manufacturer schemes for extended warranties and insurance Acer, Apple, Samsung and Sony all operate schemes across multiple countries with external partners used to underwrite insurance risks in some cases Apple and AIG dominate the weighted analysis of partnerships Retailer schemes for extended warranties and insurance Retailer (and mobile network operator) schemes are most prevalent in Austria, Sweden and France and least widespread in Romania, Finland and Turkey SPB emerges as the leader in both the unweighted and weighted analysis of retailer partnerships Analysis for manufacturer and retailer schemes combined and also in the combined manufacturer and retailer scheme analysis with AIG following it in second position Risk coverage of all schemes for extended warranties and insurance FINACCORD 10/2014 I

2 Cover for fraudulent calls (airtime abuse) is more likely to be available than cover for handset loss Policies in Ireland offer the most wide-ranging cover while those in Italy are the least comprehensive as they are more oriented to an extended warranty format than an insurance one Independent distribution channels Independent providers of mobile phone cover are active in 12 out of the 20 countries Market value for extended warranties and insurance Attachment rates are likely to have risen quite substantially in most countries between 2009 and as smartphones and post-paid contracts have gained in popularity across Europe thereby triggering a strong increase in the value of the mobile phone insurance market Two countries are likely to account for close to a half of the market value across 20 countries but less than a third of the market in terms of the number of stand-alone policies in force Market forecasts to The total number of mobile phone subscriptions is predicted to reach almost 1 billion by with the proportion of the total population owning at least one mobile phone edging up to 82.9% Attachment rates across Europe are expected to continue to increase albeit at a reduced pace in part because of slower growth rates in smartphone penetration from 2013 to Nevertheless, the value of mobile phone insurance and extended warranties may rise by more than 30% with small changes visible in the composition of this market when segmented by country By number of stand-alone policies in force, Germany may have overtaken France by Key data tables AUSTRIA Introduction Underlying market volumes Mobile phone subscriptions per capita advanced from 1.37 to 1.61 between 2009 and meaning that there has also been a rise in the number of individuals in possession of a mobile phone Manufacturers' original warranty length and consumer law Nine out of 12 manufacturers of mobile phones offer an original warranty of just one year Manufacturer schemes for mobile phone insurance Extended warranty or insurance cover is available from four mobile phone manufacturers Retailer schemes for mobile phone insurance and from 17 retailers, including mobile phone operators All non-virtual mobile network operators in Austria have an arrangement for mobile phone insurance Assona was bought by SchneiderGolling & Cie in March Risk coverage of all schemes for mobile phone insurance Less than a quarter of schemes incorporate more comprehensive insurance coverage Independent distribution channels Austrian consumers can also acquire mobile phone cover from several independent sources Market value for mobile phone insurance Market forecasts to The number of mobile phone subscriptions is not likely to increase although the actual number of individuals owning mobile phones will advance slightly and even a small rise in take-up rates could produce a significant increase in the insurance market value BELGIUM Introduction Underlying market volumes The volume of mobile phone subscriptions per capita reached 1.21 in meaning that around 9.1 million individuals own a mobile handset in Belgium Manufacturers' original warranty length and consumer law All manufacturers of mobile phones other than one offer a two-year original guarantee Manufacturer schemes for mobile phone insurance and three promote extended warranties or insurance Retailer schemes for mobile phone insurance A half of major retailers of mobile phones market an associated extended warranty or insurance scheme including all three non-virtual mobile network operators but none of the MVNOs active in Belgium FINACCORD 10/2014 II

3 The 'Lifeline' policy underwritten by Aviva is available through Proximus as well as The Phone House making this insurer the most prominent provider in the weighted analysis of partnerships Risk coverage of all schemes for mobile phone insurance Two schemes in Belgium offer coverage for airtime abuse or handset loss Independent distribution channels Mobile phone insurance can be acquired from a number of independent sources Market value for mobile phone insurance Market forecasts to The number of mobile phone subscriptions will rise by around 2 million between 2013 and which would equate to a mobile handset penetration rate reaching 82.8% of the total population Continuing demand for smartphones should help to buoy the market for mobile phone insurance CZECH REPUBLIC Introduction Underlying market volumes Mobile phone subscriptions per capita advanced from 1.24 to 1.39 between 2009 and meaning that the number of individuals in possession of a mobile phone has also risen Manufacturers' original warranty length and consumer law In this arena, Czech consumer law is generally aligned with EU law Manufacturer schemes for mobile phone insurance Apple and Asus are the two manufacturers to promote extended protection Retailer schemes for mobile phone insurance Among major mobile network operators, only one (T-Mobile) has a mobile phone insurance program collaborating with Generali in this context Risk coverage of all schemes for mobile phone insurance Cover for both accidental damage and theft is quite commonly available Independent distribution channels Mobile phone cover can also be acquired in a variety of formats from a number of Czech banks Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions per capita are on course to reach 1.50 by although the number of individuals with a mobile handset will only rise by 200,000 or so Faster growth in the insurance market is largely contingent upon the actions of mobile network operators DENMARK Introduction Underlying market volumes Mobile phone subscriptions per capita advanced from 1.24 to 1.32 between 2009 and meaning that the number of individuals in possession of a mobile phone has also risen Manufacturers' original warranty length and consumer law Two-year original guarantees constitute the norm among mobile phone manufacturers Manufacturer schemes for mobile phone insurance but only Apple provides an option for extending its guarantee Retailer schemes for mobile phone insurance All three mobile network operators in Denmark offer schemes in this domain but no MVNOs making their partners prominent in the weighted analysis of partnerships The acquisition of Securator re-enforces the prominent position of Tryg in this market Risk coverage of all schemes for mobile phone insurance Most schemes are limited to cover for technical faults and accidental damage Independent distribution channels Consumers can acquire mobile phone cover separately from two independent sources Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions may have risen by a further 1.4 million by the end of thereby pushing up the mobile handset penetration rate FINACCORD 10/2014 III

4 and helping the mobile phone insurance market to advance further in value FINLAND Introduction Underlying market volumes Mobile phone subscriptions reached 9.32 million at the end of with the number of owners of a mobile phone settling at just under 4.5 million Manufacturers' original warranty length and consumer law Most manufacturers of mobile handsets in Finland provide a one-year original guarantee Manufacturer schemes for mobile phone insurance In the case of mobile phones, Apple has yet to introduce its 'AppleCare' program to Finland Retailer schemes for mobile phone insurance Finland's mobile network operators are notable for not offering mobile phone insurance Risk coverage of all schemes for mobile phone insurance meaning that the cover available is often limited to an extended warranty only Independent distribution channels Market value for mobile phone insurance Market forecasts to Mobile phone subscription growth is expected to be modest between 2013 and with a mobile handset penetration rate among consumers reaching almost 83% in the latter year A denser supply structure would bring about a more substantial rise in the insurance market value FRANCE Introduction Underlying market volumes Mobile subscriptions per capita in France have begun to catch up with those in comparable countries By the end of 2013, around 53 million individuals in France had a mobile phone Manufacturers' original warranty length and consumer law Most manufacturers of mobile phones offer an original warranty that lasts just one year Manufacturer schemes for mobile phone insurance Extended warranty or insurance programs are limited to just two mobile phone manufacturers with only one external insurance firm involved in this sphere Retailer schemes for mobile phone insurance Well over a half of mobile phone retailers promote mobile phone insurance or extended protection SPB's two non-virtual mobile network operator partnerships are both underwritten by AIG with Asurion having dislodged Gras Savoye from its long-standing relationship with Bouygues Telecom Retailer partnerships for mobile phone insurance are often similar to those for other types of cover Anacap Financial Partners took an equity stake in AssurOne in June Asurion has entered the French market by means of a partnership with Bouygues Telecom Other local specialists include EGA Innoserve, SAV Group and SFG with the latter firm having been acquired by Wertgarantie in March SPB has created a distinctive image for itself as an international affinity insurance broker Over 40% of its total revenues in 2013 were due to partnerships with mobile network operators Risk coverage of all schemes for mobile phone insurance A majority of mobile phone insurance schemes in France cover accidental damage and theft Independent distribution channels Advise Affinity Services and Crédit Mutuel provide further options for stand-alone mobile phone cover Packaged cover within 'assurance des moyens de paiement' is another possibility for consumers Market value for mobile phone insurance Market forecasts to Between 2013 and 2017, mobile phone subscriptions in France may rise by a further 12.5 million occasioning an increase in the percentage of the French population with a mobile phone and a fairly positive outlook for the country's market for mobile phone insurance GERMANY Introduction FINACCORD 10/2014 IV

5 Underlying market volumes Mobile phone subscriptions per capita advanced from 1.28 to 1.41 between 2009 and meaning that the number of individuals in possession of a mobile phone has also risen Manufacturers' original warranty length and consumer law Most mobile phone manufacturers offer an original warranty of two years Manufacturer schemes for mobile phone insurance Extended warranty or insurance policies are on offer from two major manufacturers Retailer schemes for mobile phone insurance Retailer insurance programs are characterised by use of a variety of operating models Four out of five non-virtual mobile network operators have a scheme for mobile phone insurance The German mobile phone insurance market features a relatively fragmented supply structure Domestic & General's revenues in Germany have been expanding quite rapidly Wertgarantie sold more than 50,000 new policies in 2013 relative to new sales in the previous year Risk coverage of all schemes for mobile phone insurance All but four schemes incorporate insurance cover in addition to protection for technical breakdown Independent distribution channels There are at least nine independent providers of mobile phone cover in Germany including Friendsurance-Alecto which has introduced the concept of online peer-to-peer insurance and assona, which was bought by SchneiderGolling & Cie in March Market value for mobile phone insurance Market forecasts to Further growth in mobile phone subscriptions is likely to be very moderate as is the actual number of individuals owning mobile phones although the value of the mobile phone insurance market could continue its upward trajectory IRELAND Introduction Underlying market volumes Mobile phone subscriptions in Ireland have exceeded the 5 million threshold although handset penetration within the total population remains below 80% Manufacturers' original warranty length and consumer law Sony stands out as its factory warranty lasts for three years Manufacturer schemes for mobile phone insurance Mobile phone cover has been organised by three mobile phone manufacturers Retailer schemes for mobile phone insurance Telefónica Insurance underwrites the mobile phone insurance program of O2 on a captive basis but is overtaken by ACE European Group in the weighted analysis of partnerships Risk coverage of all schemes for mobile phone insurance Availability of cover for airtime abuse, loss and theft is comparatively high Independent distribution channels Mobilecover Insurance sells directly to consumers as well as via Chill Insurance and Meteor Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions per capita could reach 1.30 by causing the number of individuals owning mobile phones to move up further and also helping the mobile phone insurance market to increase ITALY Introduction Underlying market volumes Mobile phone subscriptions per capita increased from 1.50 to 1.60 between 2009 and meaning that the number of individuals in possession of a mobile phone has also risen Manufacturers' original warranty length and consumer law Apple has increased the length of its original guarantee to the standard two-year term Manufacturer schemes for mobile phone insurance FINACCORD 10/2014 V

6 Extended warranty or insurance programs are on offer from three mobile phone manufacturer brands Retailer schemes for mobile phone insurance Three out of four non-virtual mobile network operators run a mobile phone insurance program with numerous retailers also doing so Estendo achieved revenue growth of over 40% in Business Company has begun expanding its extended warranty brand outside of Italy Risk coverage of all schemes for mobile phone insurance Cover for airtime abuse and loss is entirely absent from the non-independent insurance market Independent distribution channels although one of the four independent providers offers cover for airtime abuse Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions will tick up further between 2013 and as will the number of individuals owning a mobile handset Fairly robust growth is possible in Italy's mobile phone insurance market NETHERLANDS Introduction Underlying market volumes Around 2 million additional mobile phone subscriptions were taken out between 2009 and causing the number of individuals with a mobile phone to rise by around 700, Manufacturers' original warranty length and consumer law Almost all manufacturers of mobile phones offer an original warranty lasting two years Manufacturer schemes for mobile phone insurance Extended warranties or insurance are on offer in the Netherlands from five mobile phone manufacturers two of which utilise external partners for this purpose Retailer schemes for mobile phone insurance Five different operating models are in evidence for retailer mobile phone insurance programs with KPN having changed the one that it uses in recent years There are ten non-internal sources of mobile phone cover used by mobile network operators or retailers Actua Assurantiën combined its product protection propositions under one brand in EWP is a sister company to Germany-based Wertgarantie within AEGIDIUS Rückversicherung Risk coverage of all schemes for mobile phone insurance A third of schemes potentially offer coverage against loss of a handset in the Netherlands Independent distribution channels Independent providers include CoverYou Verzekeringen, Digiwise, Robiz-Assurantiën and SoZeker Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions per capita are expected to reach 1.45 by pushing up the proportion of the population with a mobile handset to almost 83% Both premiums and policies in force for mobile phone insurance are likely to grow quite significantly NORWAY Introduction Underlying market volumes Mobile phone subscriptions per capita advanced from 1.11 in 2009 to 1.16 in meaning that the number mobile handset owners has also increased Manufacturers' original warranty length and consumer law Manufacturer original guarantees last either one or two years in Norway Manufacturer schemes for mobile phone insurance Apple is unique in Norway in making an extended warranty available to its customers Retailer schemes for mobile phone insurance Some mobile network operators are running mobile phone insurance programs with Mondux Assurance running two of these, using two separate underwriters for this purpose Six other competitors are also in evidence FINACCORD 10/2014 VI

7 Risk coverage of all schemes for mobile phone insurance Cover for accidental damage is more commonly available than cover for technical failure Independent distribution channels Market value for mobile phone insurance Market forecasts to The number of mobile phone subscriptions will probably carry on growing as will the number of individuals in possession of a mobile phone An increase of just 0.5% in the overall take-up rate would cause a significant rise in the total market value POLAND Introduction Underlying market volumes There were 12.5 million more mobile phone subscriptions at the end of 2013 than at the end of meaning that the number of individuals in possession of a mobile phone has also risen somewhat Manufacturers' original warranty length and consumer law Most manufacturers of mobile phones offer an original warranty lasting two years Manufacturer schemes for mobile phone insurance Acer, Apple, Asus and Samsung are the manufacturers with extended warranty or insurance programs Retailer schemes for mobile phone insurance Just under half of mobile phone retailers offer extended warranties or insurance with Ergo Hestia the most commonly cited external partner in a market with at least ten aspiring external providers SPB Polska and its partner Warta benefit from their relationship with the Media Markt and Saturn brands Risk coverage of all schemes for mobile phone insurance A handful of schemes afford protection in the event of fraudulent usage Independent distribution channels Market value for mobile phone insurance Market forecasts to A declining population may depress growth in mobile phone subscriptions although the mobile handset penetration rate among consumers will still increase A further substantial rise in the value of the mobile phone insurance market is predicted for PORTUGAL Introduction Underlying market volumes Mobile phone subscriptions per capita advanced from 1.11 to 1.26 between 2009 and causing the mobile handset penetration rate to reach 81.8% of the country's population Manufacturers' original warranty length and consumer law An original warranty with a duration of two years is available from all mobile phone manufacturers Manufacturer schemes for mobile phone insurance and Acer, Apple and Sony have made arrangements for extending these Retailer schemes for mobile phone insurance Eight out of 20 retailers of mobile phones surveyed in Portugal promote extended warranties or insurance although none of these are mobile network operators Risk coverage of all schemes for mobile phone insurance Five schemes incorporate cover for theft in addition to protection for technical breakdown Independent distribution channels Market value for mobile phone insurance Market forecasts to By 2017, the number of mobile phone subscriptions in Portugal may have reached 15 million pushing up by around 300,000 the actual number of individuals owning a mobile phone There is scope for Portugal's relatively small mobile phone insurance market to grow substantially ROMANIA Introduction Underlying market volumes FINACCORD 10/2014 VII

8 In spite of a declining population, mobile phone subscriptions have growth quite strongly although the number of mobile handset owners less so Manufacturers' original warranty length and consumer law Two out of 11 mobile phone manufacturers limit their factory warranty to a single year Manufacturer schemes for mobile phone insurance Retailer schemes for mobile phone insurance Two out of three mobile network operators offer insurance with Marsh administrating in both cases Risk coverage of all schemes for mobile phone insurance Cover for airtime abuse and loss is not yet available in Romania Independent distribution channels Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions per capita will have edged up further by but a reduction in the population will cause the number of mobile handset owners to fall Notwithstanding this, the value of the mobile phone insurance market will probably rise further RUSSIA Introduction Underlying market volumes The number of mobile subscriptions increased by more than 30 million between 2009 and with the number of individuals in possession of a mobile phone moving up by over 5 million Manufacturers' original warranty length and consumer law Most manufacturers of mobile phones offer an original warranty lasting only one year Manufacturer schemes for mobile phone insurance although four give consumers the option of taking out an extended warranty Retailer schemes for mobile phone insurance different retailer programs for mobile phone extended warranties or insurance are visible in Russia although only one of these has been set up by a mobile network operator Operating models used fall into four different categories In weighted terms, VTB Insurance and Extra Service claim the highest partnership shares Extra Service maintains a network of around 400 service centres across Russia and HiTechnic, the captive provider used by the El Dorado retail chain, has a similar number Risk coverage of all schemes for mobile phone insurance Several schemes cover airtime abuse and / or theft in addition to accidental damage Independent distribution channels There are several other means by which consumers can obtain mobile phone insurance in Russia Market value for mobile phone insurance The high percentage of non-contract phones is a factor determining the low take-up rate for insurance although other market characteristics should help to encourage growth in attachment rates in future Market forecasts to Mobile phone subscriptions are predicted to rise more slowly between 2013 and causing the mobile handset penetration rate among consumers to reach 83% The market value could grow more quickly than forecast if more mobile network operators launch schemes SPAIN Introduction Underlying market volumes Mobile phone subscriptions per capita increased from 1.11 to 1.15 between 2009 and pushing up the number of individuals in possession of a mobile phone by 1.7 million Manufacturers' original warranty length and consumer law All manufacturers of mobile phones in Spain offer an original warranty of two years Manufacturer schemes for mobile phone insurance Only Apple has introduced an extended warranty program among manufacturers investigated Retailer schemes for mobile phone insurance Almost a half of retailers promote mobile phone insurance or extended warranties FINACCORD 10/2014 VIII

9 including all four non-virtual mobile network operators Prominent external providers include ACE European Group, Assurant Solutions, CPP and SPB with the duo of SPB and AIG leading the market in the weighted analysis of partnerships Domestic & General has achieved rapid growth in its Spanish revenues in recent times Risk coverage of all schemes for mobile phone insurance Mobile phone insurance policies in Spain are more comprehensive than those in many other countries Independent distribution channels Independent providers include Caser, Garante and LLUCH & JUELICH Brokers Market value for extended warranties and insurance Market forecasts to The growth in mobile phone subscriptions is predicted to continue between 2013 and It is predicted that 84% of Spain's forecast population will have a mobile phone by The outlook for mobile phone insurance in Spain appears very positive SWEDEN Introduction Underlying market volumes The number of mobile phone subscriptions advanced by around 1.5 million between 2009 and taking the mobile handset penetration rate to around 81.5% of Sweden's total population Manufacturers' original warranty length and consumer law Most manufacturers of mobile phones limit themselves to an original warranty of one year Manufacturer schemes for mobile phone insurance and only Acer and Apple have an arrangement for extending these Retailer schemes for mobile phone insurance Three competitors hold a combined weighted share of partnerships of more than 75% with Solid Försäkringar and Moderna Försäkringar the leaders by this measure although a relatively new competitor has emerged in the shape of Vardia Försäkring Risk coverage of all schemes for mobile phone insurance Cover for fraudulent calls is available in seven out of 19 schemes in this sphere Independent distribution channels Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions in Sweden are likely to have exceeded 13 million by propelling the number of individuals with a mobile phone above 8 million and helping to generate fairly healthy growth in the country's mobile phone insurance market SWITZERLAND Introduction Underlying market volumes Mobile phone subscriptions in Switzerland increased by 1.5 million between 2009 and with the number of individuals owning a mobile phone also rising over this period Manufacturers' original warranty length and consumer law All manufacturers of mobile handsets in Switzerland provide a two-year guarantee Manufacturer schemes for mobile phone insurance Mobile phone protection is available from Acer, Apple and Asus with Apple using AIG in this context, as in a number of other countries Retailer schemes for mobile phone insurance Mobile phone cover is available from all three non-virtual mobile network operators in Switzerland plus seven other retailers AIG, AXA Winterthur and SPB join Allianz Global Assistance and Sertronics among external providers In Switzerland, Sertronics reportedly handles around 125,000 service claims a year Risk coverage of all schemes for mobile phone insurance Availability rates are equal for cover for fraudulent calls and theft Independent distribution channels Market value for mobile phone insurance FINACCORD 10/2014 IX

10 Growing sales of smartphones plus the launch of one major new scheme will have boosted take-up rates Market forecasts to Mobile phone subscriptions in Switzerland will have exceeded 11 million by which would equate to a mobile handset penetration rate among consumers reaching 85% Even a small increase in the take-up rate will cause a fairly substantial rise in the insurance market value TURKEY Introduction Underlying market volumes Turkish mobile phone subscriptions have advanced very strongly but there is still scope for more growth as less than three quarters of the total population actually owns a handset Manufacturers' original warranty length and consumer law LG deviates from the norm by offering a three-year original warranty Manufacturer schemes for mobile phone insurance Retailer schemes for mobile phone insurance mobile phone retailers in Turkey offer some form of extended protection but none of the country's mobile network operators Risk coverage of all schemes for mobile phone insurance Cover for accidental damage and theft is quite widespread but fraudulent calls and loss are never insured Independent distribution channels Cepkask markets mobile phone service packs directly to consumers Market value for mobile phone insurance Market forecasts to Subscriptions per capita are likely to reach 1.00 by 2017 but will not stop there The penetration rate will be relatively low as a consequence of Turkey's relatively young population The market for mobile phone cover will grow with or without the participation of mobile network operators UK Introduction Underlying market volumes In terms of mobile phone subscriptions per capita, the UK market is close to saturation with more than 50 million individuals now believed to own at least one mobile handset Manufacturers' original warranty length and consumer law Nearly two thirds of mobile phone manufacturers offer an original warranty of longer than one year Manufacturer schemes for mobile phone insurance Apple is unique among manufacturers in having an arrangement in this arena Retailer schemes for mobile phone insurance although there are plenty of mobile operator and retailer insurance programs in the UK in a market that appears more fragmented when viewed in unweighted rather than weighted terms The purchase of LSG by Assurant means that Assurant Solutions has acquired two valuable relationships Asurion is also seeking to expand its position in the UK A question mark hangs over what the newly-merged Dixons Carphone will do in future in this arena Via a captive administrator, The Warranty Group continues to work with Phones4U Risk coverage of all schemes for mobile phone insurance Cover for theft is commonly available but airtime abuse is insured in just one instance Independent distribution channels The substantial value of this market in the UK has attracted more than a dozen independent providers some of which are also active in mobile gadget insurance and extended warranties for grey goods Supercover Insurance achieved further growth in its annual turnover in its most recent financial year Insurance aggregators are apparently unconvinced by their prospects in this market The withdrawal of numerous AVA products means that the bank channel may be on the wane Market value for mobile phone insurance Market forecasts to Mobile phone subscriptions are predicted to rise modestly between 2013 and which would equate to a mobile handset penetration rate reaching over 82% of the total population The continuing growth of smartphones should help buoy the market for mobile phone insurance FINACCORD 10/2014 X

11 LIST OF GRAPHICS / TABLES 0.0 EXECUTIVE SUMMARY... 1 phones in Europe, 2009, 2013 and 2017 (forecast) (table) INTRODUCTION... 4 Organisations offering mobile phones researched in Europe, segmented by country, type and retailer operating model, EUROPEAN OVERVIEW Volume of mobile phone subscriptions and subscriptions per capita in Europe, 2009 and Volume of mobile phone subscriptions in Europe, segmented by country, 2009 and Number of mobile phone subscriptions per capita in Europe, segmented by country, 2009 and Number of individuals owning a mobile phone in Europe and their weighting within the total population, 2009 and Number of individuals owning a mobile phone in Europe, segmented by country, Number of individuals owning a mobile phone in Europe, segmented by country, 2009 and Percentage of population owning a mobile phone in Europe, segmented by country, 2009 and Mobile phone subscriptions in Europe, segmented between post-paid and prepaid contracts and by country, Mobile phone subscriptions in Europe, segmented between post-paid and prepaid contracts and by country, 2012 (table) Smartphone penetration rate among individuals owning a mobile phone in Europe, segmented by country, Manufacturer, retailer and mobile network operator schemes for extended warranties and insurance linked to mobile phones in Europe: unweighted and weighted provider share of provision, Provision rates for extended warranties and insurance linked to mobile phones for manufacturers and retailers across Europe, Provision rates for extended warranties and insurance linked to mobile phones offered by manufacturers in Europe, segmented by country, Operating models for extended warranties and insurance linked to mobile phones offered by manufacturers in Europe, segmented by country, Operating models for extended warranties and insurance linked to mobile phones offered by manufacturers in Europe, segmented by country, 2014 (table) Manufacturer schemes for extended warranties and insurance linked to mobile phones in Europe: unweighted and weighted provider share of partnerships, Provision rates for extended warranties and insurance linked to mobile phones offered by retailers in Europe, segmented by country, Operating models for extended warranties and insurance linked to mobile phones offered by retailers in Europe, segmented by country, Operating models for extended warranties and insurance linked to mobile phones offered by retailers in Europe, segmented by country, 2014 (table) Retailer schemes for extended warranties and insurance linked to mobile phones in Europe: unweighted and weighted provider share of partnerships, Manufacturer and retailer schemes for extended warranties and insurance linked to mobile phones in Europe: combined unweighted and weighted provider share of partnerships, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in Europe, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in Europe, segmented by country, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in Europe, segmented by country, 2014 (table) FINACCORD 10/2014 XI

12 Assumed take-up rates for extended warranties and insurance linked to mobile phones in Europe segmented by country, 2009 and phones in Europe, 2009 and Approximate market value for extended warranties and insurance linked to mobile phones in Europe segmented by country, Approximate market value for extended warranties and insurance linked to mobile phones in Europe by country, 2009 and Approximate number of policies in force for extended warranties and insurance linked to mobile phones in Europe segmented by country, Approximate number of policies in force for extended warranties and insurance linked to mobile phones in Europe by country, 2009 and Number of individuals owning a mobile phone plotted against assumed take-up rates for extended warranties and insurance linked to mobile phones in Europe, segmented by country, Number of individuals owning a mobile phone and assumed take-up rates for extended warranties and insurance linked to mobile phones in Europe, segmented by country, 2013 (table) Volume of mobile phone subscriptions and subscriptions per capita in Europe, 2013 and 2017 (forecast) Volume of mobile phone subscriptions in Europe, segmented by country, 2013 and 2017 (forecast) Number of mobile phone subscriptions per capita in Europe, segmented by country, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in Europe and their weighting within the total population, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in Europe, segmented by country, 2017 (forecast) Number of individuals owning a mobile phone in Europe, segmented by country, 2013 and 2017 (forecast) Percentage of individuals owning a mobile phone in Europe, segmented by country, 2013 and 2017 (forecast) Assumed take-up rates for extended warranties and insurance linked to mobile phones in Europe segmented by country, 2013 and 2017 (forecast) phones in Europe, 2013 and 2017 (forecast) Approximate market value for extended warranties and insurance linked to mobile phones in Europe segmented by country, 2017 (forecast) Approximate market value for extended warranties and insurance linked to mobile phones in Europe by country, 2013 and 2017 (forecast) Approximate number of policies in force for extended warranties and insurance linked to mobile phones in Europe segmented by country, 2017 (forecast) Approximate number of policies in force for extended warranties and insurance linked to mobile phones in Europe by country, 2013 and Volume of mobile phone subscriptions in Europe segmented by country, 2009, 2013 and 2017 (forecast) (table) Number of individuals owning a mobile phone in Europe segmented by country, 2009, 2013 and 2017 (forecast) (table) Percentage of population owning a mobile phone in Europe segmented by country, 2009, 2013 and 2017 (forecast) (table) Approximate market value for extended warranties and insurance linked to mobile phones in Europe segmented by country, 2009, 2013 and 2017 (forecast) (table) Approximate number of policies in force for extended warranties and insurance linked to mobile phones in Europe segmented by country, 2009, 2013 and 2017 (forecast) (table) AUSTRIA Volume of mobile phone subscriptions and subscriptions per capita in Austria, 2009 and Number of individuals owning a mobile phone in Austria and their weighting within the total population, 2009 and Comparative length of original warranties offered by manufacturers of mobile phones in Austria, FINACCORD 10/2014 XII

13 Manufacturer schemes for extended warranties and insurance linked to mobile phones in Austria: provision rates and operating models, Manufacturer schemes for extended warranties and insurance linked to mobile phones in Austria: unweighted and weighted provider share of partnerships, Retailer schemes for extended warranties and insurance linked to mobile phones in Austria: provision rates and operating models, Retailer schemes for extended warranties and insurance linked to mobile phones in Austria: unweighted and weighted provider share of partnerships, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in Austria, phones in Austria, 2009 and Volume of mobile phone subscriptions and subscriptions per capita in Austria, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in Austria and their weighting within the total population, 2013 and 2017 (forecast) phones in Austria, 2013 and 2017 (forecast) BELGIUM Volume of mobile phone subscriptions and subscriptions per capita in Belgium, 2009 and Number of individuals owning a mobile phone in Belgium and their weighting within the total population, 2009 and Comparative length of original warranties offered by manufacturers of mobile phones in Belgium, Manufacturer schemes for extended warranties and insurance linked to mobile phones in Belgium: provision rates and operating models, Manufacturer schemes for extended warranties and insurance linked to mobile phones in Belgium: unweighted and weighted provider share of partnerships, Retailer schemes for extended warranties and insurance linked to mobile phones in Belgium: provision rates and operating models, Retailer schemes for extended warranties and insurance linked to mobile phones in Belgium: unweighted and weighted provider share of partnerships, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in Belgium, phones in Belgium, 2009 and Volume of mobile phone subscriptions and subscriptions per capita in Belgium, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in Belgium and their weighting within the total population, 2013 and 2017 (forecast) phones in Belgium, 2013 and 2017 (forecast) CZECH REPUBLIC Volume of mobile phone subscriptions and subscriptions per capita in the Czech Republic, 2009 and Number of individuals owning a mobile phone in the Czech Republic and their weighting within the total population, 2009 and Comparative length of original warranties offered by manufacturers of mobile phones in the Czech Republic, Manufacturer schemes for extended warranties and insurance linked to mobile phones in the Czech Republic: provision rates and operating models, Manufacturer schemes for extended warranties and insurance linked to mobile phones in the Czech Republic: unweighted and weighted provider share of partnerships, Retailer schemes for extended warranties and insurance linked to mobile phones in the Czech Republic: provision rates and operating models, FINACCORD 10/2014 XIII

14 Retailer schemes for extended warranties and insurance linked to mobile phones in the Czech Republic: unweighted and weighted provider share of partnerships, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in the Czech Republic, Approximate market value for extended warranties and insurance linked to mobile phones in the Czech Republic, 2009 and Volume of mobile phone subscriptions and subscriptions per capita in the Czech Republic, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in the Czech Republic and their weighting within the total population, 2013 and 2017 (forecast) Approximate market value for extended warranties and insurance linked to mobile phones in the Czech Republic, 2013 and 2017 (forecast) DENMARK Volume of mobile phone subscriptions and subscriptions per capita in Denmark, 2009 and Number of individuals owning a mobile phone in Denmark and their weighting within the total population, 2009 and Comparative length of original warranties offered by manufacturers of mobile phones in Denmark, Manufacturer schemes for extended warranties and insurance linked to mobile phones in Denmark: provision rates and operating models, Retailer schemes for extended warranties and insurance linked to mobile phones in Denmark: provision rates and operating models, Retailer schemes for extended warranties and insurance linked to mobile phones in Denmark: unweighted and weighted provider share of partnerships, Risk coverage for extended warranties and insurance linked to mobile phones in Denmark, phones in Denmark, 2009 and Volume of mobile phone subscriptions and subscriptions per capita in Denmark, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in Denmark and their weighting within the total population, 2013 and 2017 (forecast) phones in Denmark, 2013 and 2017 (forecast) FINLAND Volume of mobile phone subscriptions and subscriptions per capita in Finland, 2009 and Number of individuals owning a mobile phone in Finland and their weighting within the total population, 2009 and Comparative length of original warranties offered by manufacturers of mobile phones in Finland, Manufacturer schemes for extended warranties and insurance linked to mobile phones in Finland: provision rates and operating models, Manufacturer schemes for extended warranties and insurance linked to mobile phones in Finland: unweighted and weighted provider share of partnerships, Retailer schemes for extended warranties and insurance linked to mobile phones in Finland: provision rates and operating models, Retailer schemes for extended warranties and insurance linked to mobile phones in Finland: unweighted and weighted provider share of partnerships, Risk coverage of all schemes for extended warranties and insurance linked to mobile phones in Finland, Approximate market value for extended warranties and insurance linked to mobile phones in Finland, 2009 and Volume of mobile phone subscriptions and subscriptions per capita in Finland, 2013 and 2017 (forecast) Number of individuals owning a mobile phone in Finland and their weighting within the total population, 2013 and 2017 (forecast) FINACCORD 10/2014 XIV