Ikea eyes retail experience to support new claims model after entering UK home insurance

Ikea’s partnership with insurtech Urban Jungle to enter the UK home insurance market could see the Swedish retailer use its retail experience to support the claims process.

This is according to Jimmy Williams, chief executive at Urban Jungle, who revealed that the UK offered the Swedish retailer a market where buying insurance from “big consumer brands” and retailers was already “well-established”.

The market entrance marks Ikea’s first partnership with an insurance provider, with Urban Jungle providing a digital-first proposition.

Speaking to Insurance Times, Williams noted that one area being explored is whether customers whose furniture is covered following a loss could have it replaced with Ikea furniture via their home insurance policy.

He added that an option could also be given to the customer to “receive more value in Ikea vouchers than they might have got if it was just a cash replacement”.

“From Ikea’s point of view, they want people to come to the store,” he continued.

“Claims is an obvious place for us to be looking to build that link between the Ikea retail experience and the insurance side.”

Why the UK first?

Urban Jungle first began working with Ikea’s parent company and retail organisation Ingka Group when it took a minority stake in the insurtech as part of its £16.5m funding round in 2022.

Williams said the UK was the “the biggest investment” Ikea has made in insurance with other overseas operations at a “proof-of-concept” stage.

“The UK is the most evolved insurance market in the world [and] it’s very digital,” he continued.

“People [in the UK] are used to buying things online and there is also a big heritage in the UK of people buying insurance through big consumer brands and big retailers. All the supermarkets have offerings. It’s not unusual for a British consumer to buy insurance from a big consumer brand like Ikea. That well-established notion was a part of the logic for coming to the UK first.”