Oxygen targets warranties market

Oxygen is targeting the extended warranties market, with the recruitment of a new broking team.

Led by Mark Angel, from Mapfre Asistencia, Oxygen's agency operation, Oxygen Insurance Managers, will underwrite electrical and mechanical breakdown extended warranties and Guaranteed Asset Protection (GAP) covers.

This will be for a wide range of consumer goods including motor vehicles, domestic appliances, personal computers and mobile phones.

Cover will be provided on a direct or reinsurance basis.

The team's capacity is provided by Brit Insurance, a subsidiary of Brit Insurance Holdings.

Oxygen said the growth of consumer goods and motor vehicle purchase in areas such the Middle East and North Africa, over the last five years, “offers significant potential for the development of the extend warranty and GAP classes”.

Angel said: “The automotive market in these regions is set to grow considerably in the next several years, fuelled by the positive economic outlook and population growth. These factors make such emerging markets extremely favourable in comparison to the saturated penetration achieved by the classes in the UK and US.

“Our operating structure and ability to design unique schemes for the clients of our various producers, third party administrators and brokers will enable us to respond more effectively to their specific needs.”