The global mobile phone insurance market is projected to be USD 32.24 billion in 2025, growing at a CAGR of 12.5% from 2017 to 2025. The launch of innovative plans covered with the rising incidences of accidental damage, loss, and mechanical breakdown is expected to drive demand for cell phone insurance over the coming years.
New players are venturing in the market with innovative insurance plans at various price points to entice customers. For instance, Lydia, a French start-up is offering mobile phone insurance plans at Euro 4.29 (USD 4.90) per month in partnership with CNP Assurances, a leading French insurance corporation. The start-up also offers insurance coverage for all mobile devices including laptops, tablets, and smartwatches against theft for Euro 9.99 (USD 11.43) per month.
In 2017, protection against theft accounted for more than 29.0% market share. According to certain estimates, in 2016, around half a million Brits had their mobile phone stolen. As mobiles are increasingly being used to perform digital transactions and as an on-the-go source for entertainment, news, live feeds, and the likes, customers are increasingly opting for ensuring their cell phones. Besides, protection against physical damage is a key growth segment, which commands a major share of the market and is expected to remain the dominant segment over the coming years.
North America dominated the market, accounting for more than 31.0% share of the overall market in 2017. Rising penetration of smartphones coupled with the increasing incidences of smartphone crime in the U.S. and Canada is projected to increase the utility of insurance services in the near future. According to the Bureau of Justice Assistance, a component of the Office of Justice Programs, within the United States Department of Justice, on an average, more than one million smartphones are stolen in the U.S. every year.
Developing countries such as China and India are among the leading smartphone markets in the world. However, the penetration of mobile insurance service has been relatively low as consumers are very price sensitive and do not see much value in ensuring their cell phones. But with the growing awareness towards instances such as cyber threats mechanical breakdowns coupled with the availability of customized cell insurance solutions spurred growth in the market. In India, online retailers are also venturing in the insurance market through partnerships with insurance service providers. For instance, Flipkart, a leading online retailer, has partnered with Bajaj Allianz General Insurance to offer mobile insurance service for all mobile phone brands sold on its platform.
The global mobile insurance market comprises well-established service providers, which are focusing on offering a wide array of coverage plans at varied price points to the customers. Companies are also expanding their market reach in key growth markets such as China and India, where the penetration is relatively low compared to their western counterparts. Some of the key service providers include Allianz, AmTrust International, Apple Inc., ASSURANT, INC., Asurion, Aviva, Brightstar Corp., American International Group, Inc., Geek Squad, and GoCare Warranty Group.
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Hexa Research has segmented the mobile phone insurance market report based on product and region:-
Segmentation by product
• Physical Damage
• Electronic Damage
• Theft Protection
• Virus Protection
Segmentation by region
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa
Key players analyzed:
• AmTrust International
• Apple Inc.
• ASSURANT, INC.
• Brightstar Corp.
• American International Group, Inc.
• Geek Squad
• GoCare Warranty Group.