Case study - global online retailer sees 513% growth in add-on protection sales in four weeks

View in German and French.

Watch the demo.

As a large global online retailer that has long prioritized its customer experience, our partner understood the value that a multi-line insurance and warranty distribution platform could bring to both its customers and its business. In partnering with Cover Genius, our partner is leveraging the XCover platform – (marketed under Cover Genius’ consumer brand to provide its customers with warranties and insurance across a variety of product categories.

The introduction of tailored product protection through the partnership led to significant growth for our partner within just a few short weeks of launch, as seen here in the side by side comparison of the predecessor warranty provider and Cover Genius’ consumer warranty brand “XCover.”

Since integrating with the XCover platform to offer multiple types of product insurance and warranties in the purchase path, our partner has achieved 513% growth in add-on protection sales almost immediately after launch, with sales increasing from an average of $3,709 per week with the previous warranty provider to $19,037 per week by Week 4.

The data suggests a further 41% increase in warranty sales by the end of 2021, and, given much of the sales are annual policies sold as a subscription, on a lifetime value basis the number is expected to compound each year, with 2023 achieving 3X the sales figures for 2021.


Using our BrightWrite data analytics and experimentation platform, we examined historical and real-time sales data to determine optimal pricing on each line of product insurance offered to customers. In this way we were able to encourage conversions by offering prices that best suited a diverse range of customers. Profitability was improved by removing expensive coverages. For example, damage was removed from drones and bikes and a light depreciation schedule was added for some categories after a claims loss ratio review.

We increased the addressable market by introducing more types of protection suitable for 12 new categories – including jewelry, merchandise and musical equipment – that our partner previously did not offer.

The addition of these categories allowed our partner to capture a wider pool of customers making different types of purchases. Approximately one in three categories now offer XCover Protection, with more categories added continually. We also added tailored protection, in particular benefits for theft and shipping, to build trust for customers who are newer to online shopping. The results broadly concur with research that we conducted with that showed average order value increases when warranties are available at checkout.


Following the success of Apple Care we’ve launched one of the world’s first independent subscription warranty programs. The program ensures that customers receive protection for the life of the item. At any time, whether it’s because the item has been sold or consigned to the trash can, customers can cancel their policy that otherwise automatically renews each year (Cover Genius’ XCover insurance distribution platform ensures that the term is configurable too). 

The recurring protection is coupled with our streamlined claims process to ensure high customer satisfaction and uninterrupted coverage with zero retention costs and very low churn rates. Our partner’s customers also benefit from our easy-to-understand policy documents, a fully digital process for repairs and replacement, and instant payment of approved claims. 


As an insurtech that can quickly create and adjust products to changing circumstances and customer needs, we were able to make adjustments that led to immediate impact. Using BrightWrite’s Natural Language Processing, we identified a significant number of insurable items with prices as low as $30, meaning customers were missing out on the benefits of XCover Protection. Thousands of other categories and items are also parsed using NLP to assess their insurability, ensuring sustained growth for the foreseeable future.

Future growth

Further initiatives include additional warranty products for categories including jewelry, memorabilia and auto parts. BrightWrite’s dynamic pricing engine will also further optimize yield and BrightWrite will help ensure that AOV (average order value) improves by offering additional protection and various incentives and offers that drive up attach rates while reducing subscriber churn.