Global Mobile Phone Insurance Market Overview, 2024-29

Global Mobile Phone Insurance Market Overview, 2024-29

The whole concept of mobile phone insurance originated in the early 2000s when smartphones began to gain favor. From its inception, it was primarily accident damage insurance. With rising sophistication and prices of smartphones came growing demand for comprehensive insurance coverage, including theft, loss, and later on, even electronic malfunction. Very quick market growth ensued, as mobile devices became integral tools in everyday life. Mobile phone insurance varies culturally and is often adopted based on reliance on technology within the society, as well as economic variables. In regions where smartphone penetration has hit top gear, individual markets such as North America, Europe, and parts of Asia-Pacific view insurance more as protection against the high cost of device replacement. Artificial intelligence and machine learning are increasingly being used in risk assessment and for providing tailored insurance offers to customers. Besides, various insurer–telecom–retailer partnerships provided expanded distribution channels, which increased access to insurance products for consumers. The challenges in the global mobile phone insurance market pertain to consumer perception, regulatory complexities, and prevention of fraud. Consumer perception about complex insurance policies or even a perceived ignorance of any need for them has to be met with customer education and transparent dialogues.Fraudulent claims are a huge headache, and it calls for the implementation of strong verification mechanisms and cyber security measures by the PSU insured. Current trends include the rise of cyber insurance for mobile devices, mainly in consideration of the growing risk related to data breaches and cyber attacks. Another trend is the surge in demand for contactless insurance solutions and remote claims processing due to the COVID-19 pandemic, which accelerated digital transformation. Other growing areas are in relation to sustainable practices, where insurers look toward repair and recycling programs in an attempt to reduce electronic waste. Asurion, SquareTrade, and Assurant represent leading global insurers who have been at the forefront of tailoring comprehensive mobile phone insurance plans with cutting edge customer solutions.

According to the research report, “Global Mobile Phone Insurance Market Overview, 2029” published by Bonafide Research, the market is anticipated to cross USD 53 Billion by 2029, increasing from USD 33 Billion in 2023. The market is expected to grow with an 8% CAGR from 2024 to 2029. Some of the drivers for growth in the global mobile phone insurance market include heightened awareness and education amongst consumers regarding the financial implications of a new set of smartphones and the benefits accrued from insuring them. Herein, insurance companies are vigorously engaging in activities that educate consumers to foster an understanding of the value proposition brought about by insurance through mitigation of financial risk related to device ownership.Regulatory frameworks and government policies in general hence play an extremely significant role in defining market dynamics. The regulatory bodies enforce transparency, fair practices, and consumer protection presetments. This would create an environment of trust and confidence between the consumers and service providers. For consumers, confidence they get from regulatory support would be a good reason for boosting the adoption rates of mobile phone insurance products across the globe. Even economic factors contribute to increasing the market. In areas such as North America and Western Europe, placing the smartphone as significant investment shares vis-à-vis disposable incomes, insurance provides financial security from unforeseen expenses, an, partnerships between the insurance companies, telecom operators, and retailers increase the distribution channels of insurance products and reach out to more customers. The mobile phone insurance market in the world is gigantic and growing. Product innovations, the significance of digitalization, and the market penetration of mobile phones in developing regions, taken together, reflect strong growth dynamics. The differences at regional levels in the market dynamics represent large differences in consumer behaviors, economic conditions, and regulatory environment affecting uptake, competitiveness, and insurance. Innovation remains one of the cornerstones for further development in the market, with insurers promoting flexibility in coverage options, value-added services, and sustainability initiatives. Some advocate the repair of devices instead of their wholesale replacement in the battle against e-waste, while others offer eco-friendly insurance solutions that emphasize with consumer leanings toward sustainable practices.

Market Drivers

• Increasing Smartphone Penetration and Ownership: The rising global adoption of smartphones continues to drive the demand for mobile phone insurance. As smartphones become essential tools for communication, work, and entertainment, consumers are increasingly aware of the financial risks associated with damage, loss, or theft. With more people owning smartphones worldwide, the potential market for mobile phone insurance expands.
• Advancements in Mobile Technology and Device Costs: The continuous evolution of mobile technology leads to higher device costs, making insurance a practical choice for consumers looking to safeguard their investments. Premium smartphones now incorporate advanced features such as 5G connectivity, high-resolution cameras, and foldable displays, contributing to their higher retail prices. As the cost of repairs or replacements for these devices rises, consumers are more inclined to opt for insurance coverage to mitigate financial risks.

Market Challenges

• Price Sensitivity and Market Saturation: Price sensitivity among consumers poses a challenge to the mobile phone insurance market, especially in regions with a strong focus on affordability. While the need for protection is evident, some consumers perceive insurance premiums as an additional financial burden. In competitive markets, insurers face the challenge of balancing comprehensive coverage with competitive pricing to attract and retain customers.
• Complex Claims Processes and Customer Experience: Complex claims processes and subpar customer experiences can hinder market growth and customer satisfaction. Insurers must streamline claims processes to ensure timely and efficient service delivery. Issues such as unclear policy terms, lengthy claim approval times, and inadequate customer support can lead to dissatisfaction among policyholders. Addressing these challenges requires investment in digital solutions, such as mobile apps for claims processing and customer service enhancements, to improve transparency and responsiveness.

Market Trends

• Expansion of Coverage Options Beyond Physical Damage: Insurers are expanding coverage options beyond traditional physical damage to include cybersecurity threats, such as data breaches and identity theft. As smartphones increasingly store sensitive personal and financial information, the need for comprehensive protection against cyber risks grows. Insurance providers are integrating cyber insurance features into mobile phone policies, offering coverage for digital threats that can compromise device security and user privacy.
• Integration of Value-Added Services and Partnerships: Insurers are leveraging partnerships with device manufacturers, retailers, and tech companies to offer value-added services such as device diagnostics, remote troubleshooting, and tech support. Collaborations enable insurers to enhance the overall customer experience by providing convenient access to additional services that complement insurance coverage. For example, partnerships with repair centers ensure seamless device repairs, while tie-ups with tech support providers offer round-the-clock assistance for troubleshooting software issues.

In the global mobile phone insurance marketplace, mid-range and high-end phones are gaining because consumers recently reached out to balanced performance with affordability in mobile devices.

The growth exhibited by mid-range and high-end phones in the global mobile phone insurance market is a niche attributable to various factors. First, such phones strike an eternally delicate balance between performance and cost, thus appealing to a broad spectrum of consumers who place a premium on functionality and value. Unlike the premium high-end smartphones, which pack the latest features at a matching price for the premium, mid-range and high-end phones offer competitive specifications and capabilities at lower costs—relatively more reachable to the masses. As these devices seem to improve with the advancement in technology, better processors, enhanced camera systems, and higher battery life, more and more people start investing in them as their principal tool of communication and computing. This trend is very palpable in emerging markets, where affordability is a key purchase criterion. Insurance firms view mid-range and high-end phones as offering an increasing market opportunity from the insurance angle. People understand that their investment needs to be protected against such exigencies as accidental damage, theft, or loss. Insurance providers are moving to provide policy options that address the specific risks associated with these devices. Much of the coverage includes protection against cracked screens, liquid damage, hardware failures, and all those problems that might leave users with a phone whose functionality is impaired and is prematurely aged—all without bringing heavy financial burdens. More and more frequently these days, value-added benefits like extended warranties, expedited repair services, and technical support further pad the list of reasons mid-range and high-end phone owners should subscribe to mobile phone insurance.

The use of advanced technology has resulted in a rise in internal component failure cases, hence driving up the growth in the global mobile phone insurance market.

Internal component failure has emerged as the prime challenge in the global mobile phone insurance market, driven by technology changes that have transformed a merely simple device like a smartphone to an advanced device with integrated hardware and software systems. Modern-day smartphones incorporate high-end components running some of the most complicated features of modern-day devices, such as powerful processors facilitating a range of AI-driven applications to large-capacity batteries and intricate circuitry facilitating full high-definition gaming and multimedia consumption. While these advancements enhance user experience and productivity, they introduce complexities that birth unseen technical failures and failures. The primary reason the demand for insurance coverage against internal component failure is gaining momentum lies in the sheer complexity of these devices. Today's smartphones, unlike their earlier generations, are much more prone to suffer from internal failures due to the intricate design of the device and integration of sensitive electronic components. They can include problems such as battery degradation, motherboard failures, and software glitches - all of which can strike any moment and cause the device to become useless despite physically being sound. While consumers grasp that such internal failures are crucial to effectively making their investments worthwhile, they be rather pricy on their own whenever they are not otherwise insured for replacement or repair. Insurers have reacted to this trend by increasing coverage options to include protection from internal component failures. Policies now include repair or replacement services for some key parts, such as batteries, processors, and cameras, meeting the special needs of heavy users of smartphones used for daily activities and communication. Not to mention that most insurers will further add diagnostic tools and tech support services to their service offerings, remotely diagnosing and resolving software-related problems to avoid hassles for policyholders.

A rapid adoption of smartphones, followed by increasing consumer awareness about protection and expanding middle-class demographics, at present time, places the Asia-Pacific region at a growing stage in the global mobile phone insurance market.

The Asia-Pacific region has emerged as one of the growth drivers in the global mobile phone insurance market, driven by a number of key factors underlining its dynamic consumer landscape and economic growth. One of the primary reasons APAC is showing growth regarding mobile phone insurance is because of the rapid smartphone adoption rate witnessed across demographics in this region. The need to ensure that these quite valuable devices are safeguarded against such potential risks as accidental damage, theft, and loss presses on more and more as more consumers start using them for communication, entertainment, and business purposes. A major driving factor has been the consumer awareness regarding financial implications involved in case of damage or loss in the APAC region. As the price of the smartphone increases as a function of technological innovation, more and more consumers are seeking insurance to cover their investments with products that offer them peace of mind and financial protection. Most regional insurance providers have had to diversify into giving flexible insurance covers for their various consumer segments, such as options that would fit premium smartphones with advanced features and more budget-friendly coverage for mid-range and budget devices. The increase in middle-class population across APAC nations has fueled demand for mobile phone insurance. The rise in disposable incomes, in conjunction with increasing urbanization, generated higher spend on electronic gadgets such as smartphones that have become a necessary tool, be it for personal or professional use, in today's lifestyle. It is in this demographic development that insurance providers take advantage of by giving competitive premiums, bundle offers, and localizing technical customer support to better address the needs and preferences of the APAC consumer.




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.
In July 2023, Apple Inc. announced AppleCare+, an extended warranty plan that includes accidental damage coverage and 24/7 technical help. AppleCare+ can be purchased within 60 days of buying an iPhone in most nations and locations.
In May 2022, Amazon announced customers can now protect all of their eligible tech purchases from Amazon with a single plan due to a new partnership with Asurion, a device insurance provider. Asurion Tech Unlimited provides coverage for accidental damage, theft, and loss and 24/7 tech support.
In September 2022 , Assurant Inc. announced that it had extended its long-standing partnership with T-Mobile for many years to continue offering complete mobile device protection solutions.

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.
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