Australia Mobile Phone Insurance Market Overview, 2029

Australia Mobile Phone Insurance Market Overview, 2029

The market for mobile phone insurance in Australia has changed significantly over recent years, influenced by several factors, including the adoption of smartphones, increased awareness toward device safety, and the emergence of tailored insurance solutions to meet specific requirements in the market. The need for insurance coverage to protect against such risks as accidental damage, theft, loss, and malfunction is becoming more critical in a country where almost all of its population relies on these devices for communication, amusement, and functionality. The calls for an enormous need for the uptake of insurance protection. In Australia, the rise in smartphone penetration over the last decade has seen most of the populace rely on these devices for communication, amusement, and functions. One of the key factors driving the growth of the mobile phone insurance market in Australia is changing consumer mindsets concerning the safety of their devices. As smartphones become essential lifestyles in people's day-to-day interactions, the consumer now identifies more with the cost attached to potential impairment or loss of their technology. A rise in demand will be noted for the products that address the issue of comprehensive coverage and provide peace of mind. In addition, the rapid development of mobile technology has driven up the complexity and cost of device repair and replacement in Australia. Advanced smartphones come with quite costly components and functionalities, making them ideal for repair or replacement at high costs. In addition, mobile technology has greatly advanced, increasing the complexity in design and thereby making repair or replacement very costly. Mobile phone insurance, in such a case, provides a less costly way of ensuring the safety of a highly expensive gadget against the unpredictable. The competitive landscape of the insurance industry in Australia would equally have been very determinant in shaping the mobile phone insurance market. Insurance providers have rolled out very innovative policies and value-added services to stand out from the lot and attract these gadget-freak consumers. These can vary from increased warranty for accessories, data protection services, and device replacement in considerably small durations. Up to now, developments on digital platforms have made it easier for consumers to buy insurance policies online, which in turn is driving the growth of the mobile phone insurance market. The convenience offered by digital platforms enables consumers to compare all available insurance policies, customize the policy to their requirements, and complete the purchase journey with minimal effort.

According to the research report ""Australia Mobile Phone Insurance Market Overview, 2029"" from Bonafide Research, the Australian Mobile Phone Insurance Market is anticipated to add to more than USD 350 Million by 2024–29. Several factors continue to shape consumer purchasing decisions in relation to mobile phone insurance in Australia. The first is the perceived value of insurance cover. Australian consumers often consider the probable costs of repairs or replacement when a device is damaged or lost compared to the premiums charged by insurance providers. Considering that people in Australia have high dependency on smartphones for communication, business, and entertainment in an increasingly socially connected and digitally advanced society, many with such concerns have chosen to acquire mobile phone insurance as a way of purchasing peace of mind and financial protection should something happen. The comprehensiveness of the policy and the level of the package are important. Service and better functionality are other important factors that Australian consumer’s desire in Insurance providers has a reputation of interacting with their clients. They look for companies that respond efficiently to claims and have a record of high-quality customer service. The positive effect of friends' and family's recommendations or online reviews is very high regarding consumers' trust and confidence factors in that insurance provider. While realizing and acknowledging the value of mobile phone insurance, Australian customers have to go through a number of pain points that influence their decision-making process. The complex terms and conditions along with exclusions and constraints in the policy of insurance are some general concerns of policyholders. It can be difficult for people to wade through the fine print of exclusions and understand the real reach of the insurance, which leaves them in some doubt and hesitation about buying insurance.

Based on the report, the Australian mobile phone market includes three main types: premium smartphones, mid & high-end phones, and budget phones. Each of them has different features, price, and insurance needs. Premium smartphones are high-end devices formulated with advanced features and a high price tag. These usually target consumers who are hunting for the latest technology and are willing to pay for it. Due to the extremely high value of these premium smartphones, their insurance coverage also has to be up to the task in protecting from the various risks, such as theft and harm. Insurance underwriters in Australia offer specialist policies for premium smartphones covering accidental damage, theft, and loss, with additional features, such as extended warranties and technical support. For example, Telstra is one of the largest telecommunications service providers in Australia with a mobile phone insurance program for premium smartphones. According to Telstra, its Premium Mobile Plan includes an insurance policy for accidental damage, such as breakages and liquid damage, theft, or loss of the device and it also expands to cover mechanical and electrical failures. Additionally, Telstra offers a data protection service and provides technical support. Telstra's Premium Mobile Protection insurance also covers a lot of data protection and technical support. Mid & high-end phones are devices with good features and performance, but a lower price compared to premium smartphones. They are popular among consumers who look for reliability in phones without spending much. Insurance for mid & high-end phones in Australia is usually not as expensive as insurance for premium smartphones but offers the same type of coverage. Common insurance policies include accidental damage coverage due to physical and mechanical damage; theft or loss; and mechanical breakdown, as well as failure in the software. Budget phones are usually cheap gadgets that expose the basic features and functionalities. Budget phones often target those consumers who have basic needs or cannot afford much more. Insurance for budget phones is quite infrequent due to their affordability in Australia, but some providers offer basic coverage options for accidental damages and theft.

Physical damage protection is a popular coverage option for the plan, covering unintentional harm initiated upon the device, for example scratching, cracking, and liquid contact. This is all a very important coverage, considering the cost of repairing or replacing modern smartphones. There is a possibility of internal component failures, such as those resulting from manufacturing defects, among other causes. It provides peace of mind to users who rely heavily on mobile devices for their personal life or profession. Australians like having theft and loss protection along with their warranties, considering how their expensive smartphones are hot to trot for the wrong side of the law, not to mention losing one of those would cause quite the hold up in day-to-day living. Some Australian mobile phone providers offer other features among coverage: extended warranties, technical support, and accessories such as headphones and chargers. A good example is that of Allianz Australia, a reputable Australian insurance provider for mobile phones: it provides exclusive coverage. Allianz Australia insures mobile phones against physical damage, theft, or loss, and additionally features insurance coverage for unauthorized calls and data use in case of theft. They will offer a replacement device while the insured one is under repair, hence offering a convenient solution for customers who can't afford to miss their phones for a long time. Australian phone insurance is extremely competitive; with various providers all offering very different coverage options and features. Some mobile carriers offer insurance plans, while third-party providers and even banks offer coverage as a benefit. The competition has brought competitive pricing and innovative features, like online claims processes and customer support service operating 24/7. 

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Mobile Phone Insurance market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Phone Type
• Premium smartphones
• Mid & high-end phones
• Budget phones

By Coverage
• Physical Damage
• Internal Component failure
• Theft & Loss Protection
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Mobile Phone Insurance industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.