Deal expected to generate £15m premium per year
UK Warranty has launched a pay-as-you-go after-sales policy with retail group Buy It Direct.
The For Life warranty is the first product to be sold by UK Warranty on a rolling monthly contract and the deal is expected to deliver £15m in premium per year.
It will be offered online and at the group’s showrooms on white goods and televisions. Buy It Direct’s operations include Appliances Direct and Direct TV.
UK Warranty managing director Neil Martin said: “We want to give customers the chance to buy affordable protection for their household appliances. Traditional warranties are sold on a three or five-year basis. However, this product allows customer to pay monthly and they are not tied in, which gives them control of the policy.
“Customers are rightly more demanding of their white goods suppliers, and that includes after-sales care. We are responding by finding new ways of giving customers protection and peace of mind, including offering them more choices to suit their needs.”
UK Warranty was set up by specialist insurer UK General and support provider Pacifica last February. At the time, the companies said they wanted to capture 5% of the UK’s £550m warranty marketplace within two years.
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