Electrical retailer Dixons has launched a voucher scheme for the insurance replacement market.

The retailer said the scheme was intended to drive down the cost of settlements while enabling insurance companies to achieve savings in administration and claims costs.

Billy Harley, commercial sales manager at Dixons, said the scheme would also prevent fraud as its vouchers could not be exchanged for cash.

Dixons will take on the role of goods replacement following the distribution of the vouchers, including the answering of aftersales queries.

Replacement goods will be sourced from a range of 68,000 products that Dixons has on its shelves.

Dixons claims that within three hours of receiving a claim it will be able to offer vouchers.