Yes warspite
you posted noting the insurance companies would take that big hit
I responded by asking if anyone had ever seen a badly dressed frail & thin CEO of an insurance company? ...as they don't exist
Insurance in underwritten by layered risk insurance [pyramid selling in reverse] so whilst the principal insurer will pay out, they in turn will claim on their sub insurance
Ultimately the only people who pay are you & I in higher insurance premiums in years to come
However in domestic electrical there is a changing trend....our OZ retail group Harvey Norman no longer has actual insurance to cover extended warranties that they offer & sell........
The big difference is that with the vastly improved reliability of consumer products.......it is cheaper for the retailer to accept a certain miniscule % of faults will occur and provide free supply a replacement component than to actually insure against the fault
Like it's getting ridiculous......you purchase a $49.00 electric rice cooker which has a 12 month manufacturer's warranty........but at the checkout...the sales person asks if you want an additional 36 months extended warranty for just $30.00
........ they make more profit on selling extended warranties than the actual product
...after all.......Gerry Harvey is still a billionaire .....Derek