The impact of the circular economy on electronic device insurance

Principles of the circular economy in affinity insurance

Definition and importance

Affinity insurance aims to protect buyers against risks associated with purchasing electronic devices, such as breakage, theft, or malfunction. These insurances incorporate circular economy practices by encouraging the repair of the product or its replacement with a refurbished device.

Benefits of the circular economy for affinity insurers

The circular economy provides tech insurers with an excellent opportunity to:

• Reduce cost (clic here),
• Improve customer satisfaction (also clic here).
• Gain a competitive advantage: the performance of an affinity insurance lies in its ability to guarantee high-quality refurbished products efficiently and quickly.
• Promote environmental sustainability.

By integrating these practices, affinity insurers can not only comply with regulations but also capitalize on the economic, environmental, and social benefits associated with a circular approach to managing electronic products.

Application of the circulaire economy in electronic device insurance

Incorporating refurbished products into insurance offerings

Given the benefits involved, more and more affinity insurers are adopting a strategy of products replacement with refurbished devices. Incorporating this offering can take several forms:

• Standard option: automatically offering refurbished products as the primary replacement option in insurance contracts.
• Alternative option: giving customers the choice between a new or a refurbished product, highlighting the economic and ecological benefits of refurbished products.

The replacement logistics can take various forms as well:

• Direct partnerships with refurbishers.
• Partnership with Dipli to simplify management and ensure quick replacement through its extensive catalog of refurbished products.

Risk management and sustainability

Effectively managing risk and sustainability involves several key aspects:

• Partnering with certified and reputable providers known for their high reconditioning standards, including stringent quality controls.
• Offering a reactive after-sales service to swiftly address any issues with refurbished products.
• Implementing simple and efficient procedures for handling returns of defective or non-compliant products.
• Educating customers on the benefits and quality of refurbished products.
• Analyzing the performance data of refurbished products to identify and manage potential risks, allowing for strategy adjustments as needed.

Benefit of the circular economy for affinity insurers and their clients

Reducing costs and enhancing customer satisfaction

Insurers can achieve significant cost savings through the circular economy:

• Claims management costs: by partnering with reputable refurbishment experts, affinity insurers can expedite the procurement of replacement refurbished devices, reducing the need for claims refund.
• Replacement expenses; refurbished devices are more cost-effective than new ones.
• Management and waste costs.
• Government and international financial incentives and subsidies support and encourage circular economy initiatives.

They also improve customer satisfaction by:

• Faster replacements; so reducing the waiting time for customers.
• Offering replacement devices instead of refunds.
• Providing quality comparable to new products.

Contribution to environmental protection

• Reduction of electronic waste.
• Extension of products lifecycle.
• Conservation of natural resources.
• Appeal to environmentally-conscious consumers.
• Positive brand image: the affinity insurer is a responsible and sustainable player.
• Greenhouse gas (GHG) emissions reduction.

Case studies and best practices

Examples of insurance companies adopting circular economy

Pour sourcer ou valoriser leur stocks, de nombreuses assurances affinitaires se tournent vers des pratiques circulaires. On peut notamment citer Axa, Insurama, Assurant ou encore SPB qui utilisent la plateforme Dipli pour ce faire.

To source or manage their stock, many affinity insurance are turning to circular practices. Notable examples such as Axa, Insurama, Assurant, and SPB are using Dipli's platform for this purpose.

Recommendations for optimizing insurance practices

Dipli helps affinity insurance optimize their replacements through:

• API or web interface,
• A wide range of electronic products with a high availability rate,
• Device equivalence options,
• Unified billing.

Dipli simplifies the second life of electronic products.

An all-in-one tool for distributors, leasing companies, telecom operators and companies to manage the entire value chain in one place.

The platform connects the electronics industry to secondary markets; simply and securely. Trade-in and return management, refurbishment, omni-channel purchasing and distribution: Dipli covers and simplifies all stages of the circular economy.