Japan Mobile Phone Insurance Market Overview, 2029

Japan Mobile Phone Insurance Market Overview, 2029

The mobile phone insurance market in Japan has increased fully in the last ten years, mainly due to the increasing value of smartphones and the role these devices play in life. Being one of the most advanced markets in Asia, Japan experiences a high demand for insurance products due to the advanced smartphone penetration. Smartphones are today considered a lifeline, with uses ranging from communication, navigation, banking, and entertainment, among many others. The value of these gadgets has become so significant that financial risks associated with their loss or damage is a fundamental concern of consumers. The involvement of consumers into mobile phone insurance has sharply increased, providing protection against theft, accidental damage, and technical malfunctioning. Being customers of expensive and qualitative services, Japanese insurance buyers have always strived for the maximum services to be included in repair, so the mobile insurance servicing should be really inclusive and repair should be quick. The emergence and growth of the cell phone insurance market in Japan largely coincided with other megatrends in digitalization and e-commerce. Ease of access for the consumer in buying insurance has been created through the emergence of online retail platforms, while collaborations among cell phone manufacturers, telecom operators, and insurers have seen insurance offerings integrated at the point of sale. The available regulatory frameworks within Japan are also supporting the existing trust and uptake of mobile phone insurance policies as the terms are set relatively transparently, with published benefits for the consumer. In Japan, mobile phone insurance is a must since smartphones are essential to life both personally and professionally. On another note, because the experience in every sphere of life is contained in the device, the inconvenience and repercussions of leaving the house without a working phone are, therefore, unthinkable. In addition, the modern design of smartphones and their frailty have made insurance increasingly practical and invaluable. With the proliferation of new technological advancements and the need for protection against the uncertainty of life, this market of mobile phone insurance in Japan will continue to grow.

According to the recent report ""Japan Mobile Phone Insurance Market Overview, 2029"" by Bonafide Research, the Japan mobile phone insurance market is anticipated to grow at more than 9% CAGR from 2024 to 2029. Many factors shape and drive the Japan mobile phone insurance market. High rates of smartphone penetration lead to high mobile usage, increased demand for the insurance of the devices used through lots of risks. The quick adoption of advanced technology, including high-end smartphones, in Japan, drives the need for insurance coverage of costly devices. Insurers offer cross—coverage for cyber risks with growing awareness of the risks and increasing dependence of insurance on smartphones for several purposes, graticulating security-conscious consumers. In Japan, insurance companies partner with mobile carriers, retailers, and device manufacturers to offer bundled services or discounts, making it more accessible and attractive. The flexible insurance plans enable consumers to select multiple coverage options tailored to their needs and budgets, leading to the rising appeal of mobile phone insurance. Government initiatives and regulations that teach and foster the practice of digital literacy and responsible technology use among the citizens promote trust among the consumers and encourage them to buy insurance. With the increasing adoption of e-commerce and online services in Japan, sales of online mobile phone insurance become more convenient as consumers start easily accessing the policies for free and, with time, get access to so many policies that they can purchase insurance via digital ways.

The Japanese market for mobile phone insurance is designed based on the types of smartphones that the consumer group has. In the premium segment, users invest in high-end devices by top brands such as Apple, Sony, and Sharp. Users in this segment require extensive coverage since they have made a high monetary investment in these devices. Users want protection against accidental damage, theft insurance, and extended warranties that will make their costly smartphones remain lifelike for the following years. For users in the mid-range to high-end smartphone segment, they desire a balance between the device's advanced features and affordability. Since protecting their phones comes to mind, insurance options are scrutinized to fit the budget and specific needs of their up-for-the-challenge and yet reasonably priced devices. Insurers in this segment craft customized plans to cater to the sensitive demographic of value-conscious tech enthusiasts and working professionals. This is where its challenges come, as users are more budget-sensitive to features. While some may be less likely to have insurance for their more basic and lower-cost devices, others realize the worth of protection plans to their investments, particularly for long-duration usage or for people who are accident-prone. The Japanese mobile phone insurance market caters its offerings to these different mindsets. Insurers offer a range of coverage or bare-bones protection for budget devices and comprehensive protection for high-end devices.

The Japanese mobile insurance market, the coverage types are divided into physical damage, internal component failure, theft & loss protection, and others. The most common type of coverage is protection from accidental damage, and it includes damage resulting from cracked screens, liquid damage, and basic drops. The coverage is integral since, for most Japanese people, replacing or even repairing modern expensive phones can be prohibitive. A significant coverage is that of internal component failures due to manufacturing defects, among other factors. This is due to the significant effect such failure could have on individuals who will majorly be receiving work-related information or messages from the devices or may be engaged in social or leisure communication. Protection against theft and loss finds place among the most popular coverage options in Japan, with the cost implications of the phones on thieves and the level of interference with one's life major due to the loss of the phone. A few Japanese mobile insurance providers include features that differentiate their services in the market; another one is identity theft protection that ensures that personal information stored on the phone is safe. An example is such a Japanese mobile insurer, in this case, being Saison Assurance. In its front-line offering, Saison Assurance offers protection from accidental damage, internal component failures, theft, and loss, all the way to other distinct and unique features like accidental drops from any height and power surges that cause a malfunction. Same-day repair is also offered in the largest cities in Japan to make the repair process as convenient and fast as possible if such a need arises. The mobile insurance market in Japan offers a lot of diversification with different companies that offer various forms of insurance, with normal insurance companies, phone carriers, and third-party providers that even include some credit card companies.

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.