Mobile Phone Insurance Market

Global Mobile Phone Insurance Market Size (2024 to 2029)

The size of the global mobile phone insurance market is predicted to reach USD 39.29 billion in 2024 and USD 71.75 billion by 2029, growing at a CAGR of 12.8% during the forecast period.

Insurance is protection offered against financial loss. If an individual purchases a good or service, he is eligible for coverage for the designated products/services, protecting him from damage due to various circumstances. The insurance buyer must pay a defined premium to obtain insurance services. The dividend is an amount of money collected by the insurer from the policyholder for the cover provided by the insurance policy. 

Current Scenario of the Global Mobile Phone Insurance Market

The number of smartphone users is rapidly increasing due to personal spending in economies and technological advances. As a result, with the rise of smartphone users around the world, the insurance industry has experienced sustainable growth in the insurance policies for mobile phones offered by different manufacturers, mobile networks, and retail companies. The protection provided by mobile insurance includes theft or loss, damage insurance, and so on.

Mobile phones act as a platform for education and entertainment and efficiently carry out digital transactions. The increasing use of smartphones to store personal information and digital sales has led to the need to protect mobile devices. This trend is expected to accelerate market growth over the forecast period. According to the GSMA, about 75% of all cell phone owners are supposed to own a smartphone by 2025. Cell phone insurance service providers are working with smartphone manufacturers to experiment with offering insurance policies/plans while purchasing a mobile phone.

MARKET DRIVERS

The increase in incidents of accidental damage, phone theft, viral infection, and device malfunction is presumed to fuel market growth over the forecast period.

Mobile phones are very susceptible to physical and technical damage, such as damaged cases and excessive dust and dirt, which can have an adverse effect on the printed circuit board (PCB) and components. This damage can also lead to enormous losses for users, and the demand for insurance for cell phones is therefore suspected to increase during the projection period. Rising smartphone costs are also forcing consumers to opt for cell phone insurance policies.

The increasing adoption of Business Intelligence (BI) tools by cell phone insurance companies is assumed to stimulate market growth over the outlook period. BI tools help mobile insurance companies to identify negative trends in the costs and performance of their products. BI is used strategically or tactically to monitor key performance indicators (KPIs) related to the growth of policies, the rate of complaints incurred, the average time taken to resolve a complaint, etc. KPIs also help assess the development of insurance companies and allow potential investors to determine the effectiveness of a company's operating strategies.

Furthermore, the growing collaborations between cell phone manufacturers and insurers are expected to spur market growth during the forecast period. Also, the provision of direct consumer insurance assistance is anticipated to create substantial growth opportunities for mobile insurance providers during the outlook period.

MARKET RESTRAINTS

The direct consumer assistance model offers a better customer experience compared to selling insurance through traditional distribution channels. The complexities associated with the terms and conditions make it difficult for consumers to choose an appropriate claim procedure, which should hamper the market's growth. Some mobile phone insurers offer coverage plans with a fixed premium and amount of coverage, leading customers to hesitate to purchase such policies.

REPORT COVERAGE

SEGMENTAL ANALYSIS 

Global Mobile Phone Insurance Market Analysis By Coverage

The physical damage segment accounted for the largest market share of over 30% in 2018. Protection against physical damage is the essential protection plan against loss provided by a maximum of users because cell phones are very prone to physical harm, such as cracks in the circuit board, damage to the screen, etc. Therefore, in recent years, several mobile phone insurance companies have started offering insurance coverage for such losses as part of physical damage plans, helping users avoid paying substantial sums for repair and maintenance.

Global Mobile Phone Insurance Market Analysis By Phone Type

Mobile phone insurance companies offer various insurance policies depending on the type of mobile phone, such as low-budget phones, mid-range and high-end smartphones, and premium smartphones. High-end smartphones are subject to mechanical and physical damage, resulting in considerable losses. To protect their smartphones from these losses, users opt for mobile phone insurance. Mechanical damage, such as software malfunction, is typical in high-end smartphones. In addition to mechanical damage, theft and property damage cause heavy losses for users. Users pay large sums to repair this damage and maintain these phones. All these aspects are estimated to translate into increased adoption of mobile phone insurance by premium smartphone users.

REGIONAL ANALYSIS 

The North American market is expected to account for the largest market share by 2026. The growth of the local market can be attributed to the presence of many mobile phone insurance providers and the increased incidence of cell phone crime in Canada and the United States. In the Legal Aid Office, on average, more than a million smartphones are stolen in the United States each year, and insurance plans are foreseen to become available that offer additional protection against software malfunction and device replacement stolen, supporting the regional market growth during the prediction period.

KEY PLAYERS IN THE GLOBAL MOBILE PHONE INSURANCE MARKET

1. AmTrust International

2. Assurant Inc

3. Asurion AT&T Inc

4. Brightstar Corp

5. GoCare Warranty Group

6. Revolut Ltd.

7. SquareTrade Inc.

8. Taurus Insurance Services Limited

9. Vodafone Limited

Mobile phone insurers are focusing on collaborating with telecom operators to increase their regional presence.

DETAILED SEGMENTATION OF THE GLOBAL MOBILE INSURANCE MARKET INCLUDED IN THIS REPORT

The global mobile phone insurance market is segmented and sub-segmented based on the coverage, phone type, and region.

By Coverage

• Physical Damage

• Failure of Internal Components

• Protection Against Theft and Loss

• Virus Protection

By Phone Type

• Budget Phones

• Mid & High-End Smartphones

• Premium Smartphones

By Region

• North America

• Latin America

• Asia Pacific

• Middle East & Africa

• Europe