Consumer electronics play a central role in the daily lives of European consumers: smartphones, laptops, tablets, and connected devices have become indispensable. For retailers, this segment represents not only considerable sales volume, but also a unique opportunity to increase customer value through high-margin services such as insurance.
A rapidly expanding market
In Europe, the consumer electronics market is estimated at $360 billion in 2024 and is expected to reach $630 billion by 2033 (+6.4% CAGR) according to Grand View Research and Global Market Insights. Online commerce, already worth €112 billion in 2024, accounts for more than half of total sales and has grown by +24% in one year (E-commerce Europe). These figures show that consumers are investing heavily in high-value products, which increases their need for protection in a more challenging economic environment.
Why is insurance appealing to consumers and retailers?
Electronic devices are perceived as fragile and expensive to replace. Offering insurance at the time of purchase addresses this concern and creates a sense of security for buyers. For retailers, it is much more than an additional service, as it allows them to:
- Generate attractive margins: guarantees and insurance generate margins of between 50% and 70% (Yahoo Finance).
- Have a direct impact on average basket size: studies show conversion rates ranging from 28% to 58%, with an increase in net margin of nearly 18% without additional logistics costs (SureBright).
These benefits are not limited to the initial transaction. Insurance also helps build lasting relationships: insured customers return for repairs, extensions, or replacements, which increases lifetime value and promotes additional sales.
More than just a service: a strategic lever
Insurance thus helps to strengthen the retailer's value proposition. It transforms a simple sale into an ongoing relationship, where every post-purchase interaction becomes an opportunity for customer loyalty and additional sales. In a context of fierce price competition, offering insurance differentiates the retailer, enhances its image, and meets consumer expectations.
embedded insurance simplicity and efficiency
Integrating insurance directly into the purchasing process, whether online or in-store, is now the norm. This model, known as "embedded insurance," is growing rapidly in Europe and could reach 8 million policies by 2033, with annual growth of 35% (Exactitude Consultancy). It generates additional revenue without heavy investment for the retailer and improves the customer experience.
Impact on customer loyalty and omnichannel retailing
Insurance fits perfectly into an omnichannel strategy: whether purchasing online or in-store, customers enjoy a consistent and secure experience. This consistency builds trust and encourages repeat business, thereby increasing purchase frequency and average customer value.
The role of Neat
Neat helps retailers leverage this strategic advantage through:
- Guarantees tailored to new consumer expectations: Extended warranty, protection against breakage, breakdown, theft, or loss, buy-back warranty, as well as coverage for household goods, whether new, refurbished second-hand .
- Seamless integration into the purchasing journey, both online and in-store, for a frictionless and harmonized experience .
- A simple and transparent customer experience that builds trust and drives conversion .
- Acustomized, clear, and user-friendly dashboard that allows you to track performance in real time and optimize decisions.
- Dedicated support to structure the offering, adjust pricing, and maximize value for the retailer and customer satisfaction.
In conclusion
Electronics insurance is not just a service: it is a driver of growth, margins, and customer loyalty. In a rapidly expanding market, retailers who adopt this model strengthen their competitiveness and build lasting relationships with their customers.
Neat supports you in transforming this opportunity into a strategic advantage.
