Mobile Phone Insurance Market Growth & Trends
The global mobile phone insurance market size is expected to reach USD 59.97 billion by 2028, registering a CAGR of 12.6% from 2021 to 2028, according to a new study by Grand View Research, Inc. The growth is attributable to the increasing number of smartphone users across the globe. The market growth can also be ascribed to the growing demand for smartphones that are used for entertainment, education, news, and digital transactions.
Additionally, the growing usage of smartphones, as well as mobile applications, is expected to favor market growth. Convenient claim service is also expected to contribute to the overall market growth over the forecast period. Mobile phone insurance helps avoid expensive replacement costs incurred due to the loss or breakdown of mobile phones. Damages such as physical damage and electronic damage, theft protection, and cyber-threat protection are usually covered under a mobile phone insurance policy. This is anticipated to encourage customers to opt for such insurance policies over the forecast period.
Big data analytics is also playing a pivotal role in driving the market growth. The technology helps flag claims for priority handling or proactively monitor risks to reduce financial losses. Therefore, phone insurance providers are anticipated to widely adopt analytics over the coming years. Furthermore, there is an increase in the purchase of mobile phones through online platforms. This is encouraging e-commerce companies to collaborate with insurance providers. For instance, in October 2018, Flipkart ventured into a partnership with Bajaj Allianz to offer customized insurance solutions and boost Bajaj Allianz mobile phone protection program. Moreover, these collaborations enable the partnered companies to increase their customer base across the globe.
Mobile Phone Insurance Market Report Highlights
- The market is anticipated to witness substantial growth owing to an increasing number of smartphone users and collaborations among manufacturers and insurance providers
- The physical damage segment accounted for the highest market share in 2020. The users mostly opt for plans that cover repair and replacement costs
- The premium smartphone segment accounted for a significant market share in 2020 owing to the rapidly increasing cost of smartphones and rise in the number of physical and technical damages
- The growth of the North America market can be attributed to the presence of a large number of insurance providers and higher smartphone penetration in the U.S.
- Key players include American International Group, Inc.; ASSURANT, INC; Asurion; AT&T Inc.; AmTrust Financial; Brightstar Corp.; GoCare Warranty Group; and SquareTrade, Inc.