A new report assesses the specialist insurance market, particularly examining the rise of sub-sectors such as gadget insurance
Research by YouGov revealed that within the specialist insurance market a number of subcategories are seeing significant growth, with more first time buyers entering the market.
The objective of the YouGov report was to explore the motivations, experiences and opinions of consumers who own specialist insurance. The report looked at purchasing habits, policies owned, providers used, claims experience and general attitudes towards specialist insurance cover.
The research charted the customer’s journey and purchase and channel distribution to provide a detailed and demographically segmented understanding of how best to position and target consumers in what remains a diverse and fragmented market.
Gadget insurance is one such sub-category, with 7% of holders saying they first started using specialist insurance six months ago or more recently, and a further 15% stating it was more than six months ago, but up to a year ago. This can partly be attributed to the proliferation of tablets and the desire to cover them; of those who took out gadget insurance in the last year, approximately three in 10 say it covers tablets. This makes it the second most popular type of insurance owned among these recent policyholders;
Six in 10 (60%) of consumers owning gadget insurance first started using their specialist insurance within the last three years , indicating that this is emerging market holds much in the way of opportunities for insurance companies in the future.
Tom Rees, Research Manager at YouGov Reports, commented on the findings, saying; “It is clear that companies offering specialist insurance need to react proactively to the changes in consumer behaviour, and the importance owners place on technological possessions in particular.”
Whilst gadget insurance may be on the rise as more consumers by the specialist insurance, consumers still have protection against faulty goods. The 1979 Sale of Goods Act is a powerful piece of legislation which states that goods should be of satisfactory quality, fit to do the job intended and last a reasonable length of time.
If you buy a new gadget and it breaks down within six months, you can take it straight back to the shop – and it’s up to the retailer to prove that the appliance was not faulty when you bought it.
In fact, you’re legally allowed to return goods up to six years after you buy them – though it gets harder to prove that a fault and not normal wear and tear is the cause of any problem.
It’s also worth mentioning that there are some retailers that offer extended warranties for computers, ipads, TV’s and other gadgets for up to five years for free. You can also have gadgets and personal property covered by your home insurance, but a claim on this type of policy will result in you losing your no-claims bonus, resulting in your premiums on renewal going up.