Insurance At The Point Of Sale

This thesis investigates whether retailers can effectively sell insurance by applying and expanding literature on extended warranties to the broader concept of mini-insurance. We develop propositions about the prerequisites for retailers to act as insurance intermediaries, the customer groups most likely to purchase mini-insurance and the motivations of consumers to buy mini-insurance. In an analysis of the current mini-insurance landscape in Switzerland, we find evidence that retailers are most successful when they sell mini-insurance related to their other offerings. Results of a separate consumer study in the electronics industry support this hypothesis, but other factors seem to play a role as well. Convenience appears to have a strong influence on the purchase decision of mini-insurance customers, who are not entirely congruent with traditional insurance customer groups. As this is the first known examination of the mini-insurance phenomenon, the author suggests further analyses in order to better understand the concept and to improve existing sales strategies.