Overview

Satisfaction guaranteed: Rising incomes will spur big-ticket sales, lifting demand for warranties

IBISWorld’s Product Warranty Insurance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Globalization in the industry’s markets has contributed to fewer warranties being underwritten domestically
  • Increasing demand for third-party insurance providers will help boost revenue in the long run
  • Demand for big-ticket products might be sluggish due to high interest rates, harming the industry

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    Industry Analysis & Industry Trends

    The Product Warranty Insurance industry underwrites factory warranties for manufacturers and extended warranties for retailers and consumers. Product warranties insure major electronics, household appliances and other products against defects or damage and cover repair and replacement costs. A number of trends have put downward pressure on warranty premiums in recent years, hurting underwriting revenue for industry operators. Electronics are declining in price and are the largest product group for which industry operators underwrite warranties; this has translated to a decrease in the prices of premiums to insure these goods. Moreover, electronics and appliances are increasingly produced and sold abroad, and many of the largest manufacturers, such as Samsung and LG, are foreign-owned...

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    Industry Report - Industry SWOT Analysis Chapter

    The Product Warranty Insurance industry is in the mature phase of its life cycle, characterized primarily by strong acceptance in its markets, which are stable, and technological advancements that are causing only a moderate degree of change in industry operations. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to marginally rise at an annualized rate of 1.8% over the 10 years to 2021, compared to annualized US GDP growth of 2.1% over the same period. Despite slower IVA growth, the deep acceptance of warranties in the economy and mostly stable industry markets are stronger indicators of maturity.

    Product warranty underwriters have clients throughout the supply chain and serve manufacturers, wholesalers and retailers. Tho..

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    Additional Insights for the Product Warranty Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Product Warranty Insurance Industry are

  • Ability to vary services to suit different needs
  • Ensuring pricing policy is appropriate
  • Claims service must be user friendly
  • IBISWorld analysts also discuss how external factors such as Price of semiconductor and electronic components and Households earning more than $100,000 in the Product Warranty Insurance industry impact industry performance..

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    Industry Products

    What is the Product Warranty Insurance Industry?

    This industry comprises establishments primarily engaged in underwriting product warranty policies, which protect the buyer of the product from defects and damage. The industry excludes warranty programs for homes, automobiles and other vehicles. It also excludes companies that perform repair services for products under warranty.

    Industry Products
    Electronics protection policies
    Other product protection policies
    Home appliance protection policies
    Industry Activities
    Underwriting factory warranties for manufacturers
    Underwriting extended warranties forers and consumers
    Providing training and marketing services

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Price of semiconductor and electronic components
  • Households earning more than $100,000
  • Per capita disposable income
  • Yield on 10-year Treasury note
  • Regulation for the Property, Casualty and Direct Insurance Industry

  • Current Performance
  • Third-party providers
  • Operating trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Operating trends
  • Table: Product Warranty Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Product Warranty Insurance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumer Electronics Stores
  • Home Improvement Stores
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Computer Manufacturing
  • Major Household Appliance Manufacturing

  • Products & Services
  • Electronics protection policies
  • Home appliance protection policies
  • Other product protection policies
  • Chart: Product Warranty Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Manufacturers
  • Distributors and wholesalers
  • Consumers
  • Chart: Major Market Segmentation for the Product Warranty Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesLoss and loss adjustment expenses
  • Chart: Cost Structure Benchmarking – Sector vs Product Warranty Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Product Warranty Insurance Industry

  • Industry Globalization
    Major Companies
    The Warranty Group
  • Table: The Warranty Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Product Warranty Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Product Warranty Insurance Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Price of semiconductor and electronic components (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Extended Warranty
  • An insurance product that protects a buyer from accidental damage, theft or loss of an item or good, above and beyond the basic protection offered by factory warranties.
  • Factory Warranty
  • An insurance product that protects a buyer against defects in the purchased item or good or guarantees its proper functionality for a specific period of time.
  • Premium
  • The upfront cost to an individual to enroll in a warranty policy.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Product Warranty Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Product Warranty Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Product Warranty Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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