Industry Insights
The global mobile phone insurance market was valued at USD 12.52 billion in 2017. The smartphone insurance service industry is expected to gain from increasing incidences such as accidental damage, loss, mechanical breakdown, and virus infections. Also, ease in claiming procedure, facility to upgrade policies, and the extension of coverage to include accessories have added to the demand in the market.
Global mobile phone insurance market, by region, 2015 - 2025 (USD Billion)
Globally, each year, around 70 million smartphone theft cases are reported. As per certain research studies, on an average annually 6,000 and 4,700 smartphones are stolen in Peru and Argentina, respectively.
Mobile phones are becoming an essential part of the modern lifestyle, as they serve as a platform for entertainment, education, news, and are an effective medium for conducting digital transactions. As mobile phones are increasingly being used for digital transactions and storing personal information, customers effectively look for ways to ensure the safety of these devices. The strong felt needs to safeguard mobiles phones coupled with the presence of multiple insurance solutions to choose from is expected to drive growth in the coming years.
The mobile phone insurance market is expected to witness significant growth on account of their increasing penetration on the global level. Industry participants including, mobile app developers, e-commerce service providers, and online payment companies are entering in the market through collaborations with insurance companies.
Segmentation by Product
• Physical Damage
• Electronic Damage
• Theft Protection
• Virus Protection
In 2017, protection against physical damage was the largest segment, accounting for more than 30.0% of the market share. Consumers mostly opt for plans covering physical damage as it covers repair or replacement costs.
Protection against the failure of electronic components is expected to be the fastest growing segment over the coming years. The segment is expected to grow at a CAGR of more than 13.0% during 2015-2025. In this segment, protection against wear and tear or gradual deterioration of electronic components, parts, and accessories are covered.
Mobiles are also open to cyber threats which include Trojans and botnets. The U.S. had the most data breaches of any other country, necessitating the need for effective cover against such threats in the coming years. Besides, countries such as China and India present a considerable opportunity for service providers with an increasing mobile penetration rate.
Segmentation by region
• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa
Asia Pacific is expected to register the highest growth with a CAGR of more than 15.0% during 2017 - 2025. e-tailers are entering the market in collaboration with insurance service providers in the region. For instance, in October 2018, Flipkart, a leading e-tailer in India, ventured into partnership will Bajaj Allianz, an insurance service provider active in various sectors including, home, auto, and mobile phone, to provide services to its customers.
In 2017, China was the leading contributor in the Asia Pacific region. As of 2017, the smartphone market in the country is experiencing growth. According to the study, in 2015, the country has around 1.5 billion mobile phone subscribers. In China, around 29% of consumers were using LTE 4G network during the year.
In the Middle East & Africa region, UAE is a leading country in terms of smartphone penetration. Mobile phone insurance companies are entering the market with innovative customer-friendly plans and coverages. For instance, a home insurance policy from Zurich Home Insurance comes with pre-covered mobile phone insurance for its customers.
Competitive Landscape
The global mobile phone insurance market comprises well-established companies, which are focusing on delivering efficient coverage plans to the customers. Industry participants are expanding their market reach through the development of services in accordance with customers’ requirements.
Companies are entering into partnerships with e-commerce service providers to increase their customer reach. For instance, Amazon provides SyncNscan professional backup and anti-virus with device and data insurance in collaboration with IFFCO Tokio. Some of the key service providers in the market include Allianz, AmTrust International, Apple Inc., ASSURANT, INC., Asurion, Aviva, Brightstar Corp., American International Group, Inc., Geek Squad, and GoCare Warranty Group.
