mobile phone insurance Market

The mobile phone insurance market is expected to grow from US$ 27,291.83 million in 2021 to US$ 53,161.84 million by 2028; it is estimated to grow at a CAGR of 10.4% from 2021 to 2028.

Companies provide varying coverage options to customers based on their needs and the type of phone they have. Physical damage protection is the most popular plan as it covers unintentional damage, while theft protection plans are also in demand due to increasing incidents of smartphone theft. Customers also face expensive repairs due to technological problems and virus infections, making them more inclined to insure their devices. As a result of these potential risks, customers are showing an increased interest in the insurance coverage offered by different companies, leading to greater demand.

The US and European markets dominate the mobile phone insurance market due to high smartphone penetration while developing nations are still emerging in this area. However, the level of smartphone adoption may vary depending on the region and customer preferences. According to GSM Arena, the market for secondhand and refurbished phones is estimated to have grown by 15% from 2020 to 2021, creating new opportunities for the mobile insurance market. The demand for data and virus protection drives growth in the mobile phone insurance market as users seek coverage for these risks and physical damage protection. This presents an opportunity for bundled protection plans that provide comprehensive coverage for mobile phones in the insurance market.

Smartphones now come in a wide range of prices, with premium brands like Apple and Samsung offering high-priced models. As a result, customers who purchase these expensive phones place great importance on protecting them from physical damage, technological damage, and theft. High-end phone users often experience issues with software or hardware malfunctions, making technological damage a critical concern. Additionally, physical damage, theft, or loss of smartphones is becoming increasingly common. Due to the high cost of these devices, owners often remain locked into long-term financial contracts and are less likely to switch to another phone in the event of damage. To address these concerns, mobile phone insurance companies offer a variety of insurance solutions to smartphone owners. These policies typically include options for repairs and replacements, depending on the level of damage and the specific insurance plan held by the owner.

The mobile phone insurance market has become increasingly volatile due to the growth of mobile device trade-ins. Various participants in this market manage different aspects of the value chain, allowing them to create insurance products and services that cater to specific customer demands. For example, AT&T's device protection services offer three packages that differ in the number of devices covered and the type of services provided (such as next-day screen repair delivery or same-day screen repair). This flexibility to customize service offerings allows insurance vendors to enhance the consumer experience, improve service delivery speed and efficiency, and ultimately drive growth in the mobile phone insurance market. Overall, the features and facilities solution providers provide in this market are key factors in boosting its growth.

The terms and conditions of mobile phone insurance policies can be complex, leading customers to forget about the claiming process entirely. Some insurance providers offer a fixed coverage plan with a set premium amount, regardless of the type of smartphone being insured. Others may offer different premiums for different coverage levels or types, and some may even differentiate their coverage based on the device being insured, such as iOS or Android-based phones. This can create uncertainty among customers regarding which insurance plan to choose. To address this issue, insurers are working to simplify their terms and conditions and offer maximum coverage under a single premium amount. These efforts are expected to help customers better understand the claiming procedures and boost the uptake of mobile phone insurance plans in both developed and developing economies. Ultimately, the growing focus on simplification and clarity in the mobile phone insurance market is likely to have a positive impact on the industry's growth in the years ahead.

Key companies in the mobile phone insurance market include Allianz SE; American International Group, Inc.; Apple Inc.; AT&T Inc.; Aviva insurance Limited; Better Buy Insurance; Gadget Cover; Insurance2go; Pier Insurance Managed Services Ltd.; Telef?nica UK Limited; AQILO Business Consulting GmbH; Square Trade Inc.; and Switched On Insurance. The report also comprises secondary research work on other companies that together hold a significant share in mobile phone insurance market.

The mobile phone insurance market's overall size has been determined by utilizing primary and secondary research methodologies. The research process started with extensive secondary research conducted from both internal and external sources to obtain qualitative and quantitative information related to the mobile phone insurance market. This process also helped in gaining an overview and forecast for the mobile phone insurance market for all the market segments. Additionally, multiple primary interviews were conducted with industry participants and commentators, including VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders, specialized in the mobile phone insurance market, to validate the data and obtain analytical insights.