According to our latest market study on "Mobile Phone Insurance Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Coverage, Sales Channel, Phone Type and End User," the market value is projected to reach US$ 53,161.84 million by 2028 from US$ 27,291.83 million in 2021; the market is expected to grow at a CAGR of 10.4% from 2022 to 2028.
Simplification of Insurance Appealing Process Drives Mobile Phone Insurance Market Growth
The complex terms and conditions of insurance policies in the mobile phone market often result in customers forgetting the claiming procedures. Some vendors offer a fixed premium amount for a defined coverage plan regardless of the type of smartphone, while others have different premiums for different coverage needs or even for iOS or Android-based phones, leading to uncertainty among customers. To address this issue, insurers are working on simplifying their terms and conditions and offering maximum coverage under a single premium. This simplification is expected to help customers understand the claiming procedure more clearly, leading to an increase in the uptake of mobile phone insurance plans in developed and developing economies.
Innovations and improvements in policies and schemes, along with the increasing adoption of insurance policies for future, are driving significant growth in the mobile phone insurance market. This market comprises established players as well as small firms offering a single type of coverage. The market is concentrated among mobile network operators, device OEMs, retailers, and other participants who tailor their schemes to meet customer needs.
The North American region, comprising the US, Canada, and Mexico, is witnessing a surge in the demand for smartphones, leading to a rise in demand for mobile phone insurance. Insurance providers are now pressured to offer more coverage against mechanical damage, accidental damage, theft, unauthorized access, and liquid damage to phones. There has been a notable increase in incidents involving accidental damage from mishandling and loss protection in recent years. A study conducted by global mobile phone insurance provider, ASSURANT, INC. in 2019, revealed that around 34% of US consumers purchased mobile phone insurance covering more than two years.
Asia Pacific is a diverse region with countries at different economic, demographic, and social development levels, resulting in significant variations in insurance regulations across the region. The growth of mobile insurance in the region is being driven by two key trends - the impact of mobile network operators (MNOs) in the micro-insurance sector and the dominance of phone insurance schemes provided through retailers. For instance, e-tailers like Flipkart in collaboration with insurance service providers like Bajaj Allianz are offering insurance cover for the mobile phones they sell, which is expected to boost the mobile phone insurance market growth in Asia Pacific in the coming years.
In the Middle East & Africa and South America, the mobile phone insurance market is currently in a growth phase, presenting a significant potential opportunity for mobile phone insurance providers.
Key Findings of Study:
The mobile phone insurance market has been categorized into different segments based on coverage, sales channel, phone type, and end user. Coverage options include physical damage, electronic damage, virus protection, and theft protection, while sales channels comprise mobile operators, device OEMs, retailers, and others. Phone type segments include new and refurbished phones, and the end-user segments are corporate and personal. Currently, North America dominates the global mobile phone insurance market, but APAC and MEA are expected to exhibit significant growth during the forecast period. This growth can be attributed to the increasing popularity of smartphones and the expanding internet infrastructure in developing economies in Asia and Africa.
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