Global Mobile Phone Insurance Market Size By Phone Type (Budget Phones, Mid & High-End Phones, Premium Smartphones), By Sales Channel (Retail, Online), By Coverage Type (Physical Damage, Internal Component Failure, Theft & Loss Protection), By Geographic Scope And Forecast

Mobile Phone Insurance Market Size And Forecast

Mobile Phone Insurance Market size was valued at USD 30.66 Billion in 2023 and is projected to reach USD 82.19 Billion by 2031, growing at a CAGR of 13.12% from 2024 to 2031.

• Mobile phone insurance is a financial protection service that covers the repair, replacement, or loss of a mobile phone as a result of a variety of events such as accidental damage, theft, or technical failure. It protects consumers against the financial strain of repairing or replacing their smartphones, which are often expensive and necessary in everyday life.
• Insurance acts as a safety net, guaranteeing that users can receive a replacement item without having to pay the whole cost in urbanized surroundings where the risk of such accidents is higher.
• It expands coverage to include technical problems that could hinder the use of the mobile device, such as hardware malfunctions, software bugs, or other technical hiccups.
• Furthermore, these apps offer an easy way to buy insurance, manage policy details, and file claims. The ease of accessing insurance information and services via dedicated applications streamlines the entire process, making it more accessible and efficient for users.

Mobile Phone Insurance Market Dynamics

The key market dynamics that are shaping the Mobile Phone Insurance Market include

Key Market Drivers

• Increase in Accidental MishapsAn increase in the day-to-day usage of mobile phones is escalating the chances of accidental mishaps. The fragile nature of mobile phones, like thin bezels and large screens made up of glass, cracking of screens, bumps in the body, and theft in public spaces are bolstering the risks of destruction. Thus, encouraging the adoption of financial protection such as mobile phone insurance.
• High Replacement Costs The rise in concerns regarding security and the cost-effectiveness of mobile phone insurance is anticipated to significantly lower the financial burden of replacing a damaged or lost phone, especially in the case of premium models. The high replacement cost is shifting the focus of consumers toward mobile phone insurance, creating high prospects of growth for the market.
• Innovative Products with Changing Customer Preference An increase in technological advancements in mobile phones is projected to upgrade its version as well as the cost. Thereby, necessitating the adoption of mobile phone insurance with the rising innovations in mobile phones. Therefore, personalized and flexible insurance solutions act as a magnet for evolving customer preferences, attracting new users, and fostering market expansion.
• Rise in Cost of SmartphonesIncreasing demand for high-end features, the rising cost of raw materials, and the ongoing global chip shortage are factors impacting the costs of smartphones making them valuable possessions worth protecting. As a result, there is a rise in consumers seeking
• insurance to avoid financial burden which propels the market to grow.

Key Challenges

• Decline in Sales of Mobile Phones The increase in the durability of phones is resulting in the saturation of sales of mobile phones, thereby plummeting the potential pool of customers for mobile phone insurance.
• Building Trust and Loyalty The negative perception surrounding the insurance companies as a result of the complex claiming processes and a lack of transparency in pricing together act as a barrier for Mobile Phone Insurance Market, thereby inhibiting its adoption in the coming years.
• Low Awareness and Perceived Value The absence of efficient marketing initiatives, which target a specific group that can profit from mobile phone insurance is a major aspect contributing to this problem. Thus, a lack of understanding and perceived value translates into a lower acceptance rate of mobile phone insurance within the target demographic, which is a significant challenge.

Key Trends

• Bundled and Embedded Insurance Growing demand for options alternative to insurance on online platforms, carrier outlets, and retail storefronts are insisting that insurance providers and prominent players in the mobile device ecosystem to work to develop bundled or embedded insurance packages. Hence, seamless integration of insurance into the gadget buying process is driving the demand for mobile phone insurance.
• Insurtech Integration Insurers are increasingly adopting advanced technologies such as AI-powered claims processing, digital onboarding processes, and chatbot support to offer a seamless and responsive customer experience. Therefore, the rapid development of these solutions is likely to fuel the growth of the Mobile Phone Insurance Market.

Mobile Phone Insurance Market Regional Analysis

Here is a more detailed regional analysis of the Mobile Phone Insurance Market

North America

• North America is estimated to dominate the Mobile Phone Insurance Market during the forecast period owing to the increasing adoption of high-end, costly, and branded smartphones. In addition to this, the rise in customer centricity is encouraging the carrier, insurance, and retailer companies to enter into partnerships to offer the best of data security and maintenance services.
• In North America, flagship phones generally cost more than $1,000, making them a substantial commitment for customers. This financial expenditure along with their disposable income is facilitating the consumers to protect their device through the adoption of mobile phone insurance, creating a pool of prospects for the market.
• The rising inclination toward online banking and e-commerce in this region has resulted in an increase in data breaches. Thereby, increasing demand for mobile phone insurance plans with data recovery or identity theft protection features, reflecting regional consumer priorities.
• Furthermore, effective targeted marketing campaigns in North America play a crucial role in educating the concerned consumer group. These campaigns highlight the risks associated with smartphone ownership and the benefits of having comprehensive insurance coverage, propelling the demand for mobile phone insurance in the North American region.

Europe

• The increased demand for high-end smartphones with advanced capabilities in Europe is driving the need for extensive insurance coverage. This trend reflects the region’s technology improvements as well as consumer preferences for premium devices.
• Growing emphasis on environmental measures is projected to have a strong impact on the mobile phone insurance business as there is a shift from replacement to increasing coverage for refurbished handsets and device repair. This sustainability-focused strategy is influencing product offers as well as surging the adoption of mobile phone insurance.
• Besides these, a healthy European economy with increased disposable incomes is allowing consumers to spend dollars on securing their expensive equipment, hence contributing to the expansion of the mobile phone insurance business in this region.
• Furthermore, the flourishing European mobile phone insurance industry is distinguished by a wide range of policies that extend beyond basic damage protection. Also, the imposing of policies that require more coverage alternatives by regulatory frameworks is changing the taste of consumers, exciting the adoption ofin all-inclusive policies that could include extended warranties, data recovery, and liquid spill protection. As per , all the sprouting confluence of growth drivers and challenges arising in Europe are permitting the region grow at a substantial rate.

Asia Pacific

• The Asia Pacific region is anticipated to have the highest CAGR during the forecast period. This market growth is attributable to smartphone penetration. Above this, the adoption or focus on mobile payment integration, theft and loss prevention, and digital marketing are also some significant factors contributing to the growth of mobile phone insurance in this region.
• Smartphone adoption in Asia Pacific is rapidly increasing, particularly in emerging economies such as India and China. This high and rapidly increasing smartphone penetration is likely to create a large potential consumer base for mobile phone insurance.
• Simplifying the process of purchasing insurance in the Asia Pacific region can be achieved by integrating it with well-known mobile payment systems such as WeChat and Paytm. This connection complements the region’s widespread use of mobile payments and improves the overall customer experience.
• Furthermore, partnerships with e-commerce platforms and efficient online marketing are expected to help reach audiences that are spread out geographically around Asia Pacific. They are also using digital marketing strategies and online distribution channels to increase the consumer base for mobile phone insurance in this region.

Global Mobile Phone Insurance MarketSegmentation Analysis

The Global Mobile Phone Insurance Market is segmented on the basis of Phone Type, Sales Channel, Coverage Type, And Geography.

Mobile Phone Insurance Market, By Phone Type

• Budget Phones
• Mid & High-End Phones
• Premium Phones

Based on Phone Type, the market is segmented into Budget Phones, Mid & High-End Phones,  and Premium Phones. The premium phones segment is estimated to dominate the Mobile Phone Insurance Market. The substantial cost of these devices and data security concerns collectively are projected to drive the demand for mobile phone insurance in the premium mobile phone segment, enabling the segment to hold a dominant position in the market. Consumers, aware of the financial investment in premium phones, seek insurance to mitigate the risks connected with damage, loss, or technical failure propelling the market to move forward.

Mobile Phone Insurance Market, By Sales Channel

• Retail
• Online

Based on Sales Channel, the market is segmented into Retail and Online. The retail segment is estimated to dominate the market over the forecast period. The presence of direct salespeople in retail environments and the well-established trust associated with well-known retail brands are two key factors contributing to the dominance of the retail segment. By combining insurance plans with device sales, carriers, and retailers have effectively given customers a clear and accessible choice for coverage. This bundling method not only simplifies the purchasing process but also increases the visibility of insurance options to maintain trust with consumers.

Mobile Phone Insurance Market, By Coverage Type

• Physical Damage
• Internal Component Failure
• Theft & Loss Protection
• Others

Based on Coverage Type, the market is segmented into Physical Damage, Internal Component Failure, Theft & Loss Protection, and Others. Physical Damage coverage is estimated to hold the majority share in the forecast period in the Mobile Phone Insurance Market owing to the frequent occurrence of accidental drops, spills, and cracked screens. The common danger of damage drives demand for insurance that expressly tackles these typical occurrences.

Key Players

The “Global Mobile Phone Insurance Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Asurion, AppleCare, Samsung Mobile Care, AIG, Allianz, Chubb (ACE), Assurant, CoverCloud, SquareTrade, Gadget Cover, Loveit Coverit Premium, Better Buy Insurance, GoCompare, Insurance2Go, Debenhams, AXA, Aviva, Trusted Insurances, Bajaj Allianz, ICICI Lombard, HDFC Ergo, Reliance General and Digit Insurance.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In January 2023, AIG, a prominent insurance company, established a cooperation with Samsung to provide extended warranties and protection plans for Galaxy smartphones. This collaboration intends to offer full coverage for accidental damage, theft, and mechanical breakdowns.
• In January 2024, CoverCloud, a growing insurtech business, announced its entry into the European market. This strategy hopes to capitalize on the region’s increasing need for flexible and affordable mobile phone insurance.
• In December 2023, Assurant, another large insurance carrier, announced its new AI-powered claims processing platform. This technology uses machine learning to streamline the claims process, lowering wait times and increasing client satisfaction.
• In December 2023, The Insurance Regulatory and Development Authority of India (IRDAI) released a draft proposal, establishing new requirements for mobile phone insurance coverage. These standards are intended to unify coverage, pricing, and claim settlement processes in the Indian market.
• In November 2023, SquareTrade, a prominent online device protection platform, introduced a new “zero deductible” option. This option enables consumers to file claims without having to pay a deductible, providing added peace of mind.

Report Scope

Research Methodology of Market Research

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and driv