Mobile Phone Insurance Market Research Report and Outlook by 2028

The mobile phone insurance sector is projected to expand from US$ 27,291.83 million in 2021 to US$ 53,161.84 million by 2028, reflecting a compound annual growth rate (CAGR) of 10.4% during this period.

Insurance providers offer a variety of coverage plans tailored to meet the diverse needs of customers based on their specific devices. Among these, physical damage protection stands out as the most sought-after option, as it safeguards against accidental harm. Additionally, theft protection plans are gaining traction due to the rising frequency of smartphone theft incidents. Customers are increasingly facing high repair costs stemming from technological failures and malware infections, which further motivates them to secure insurance for their devices. Consequently, the awareness of potential risks has led to a heightened interest in the insurance offerings from various companies, resulting in increased demand.

The mobile phone insurance landscape is predominantly led by the US and European markets, attributed to their high rates of smartphone ownership, while developing countries are gradually making strides in this domain. However, the extent of smartphone adoption can differ significantly across regions and consumer preferences. According to GSM Arena, the market for pre-owned and refurbished smartphones saw an estimated growth of 15% from 2020 to 2021, which opens new avenues for the mobile insurance sector. The rising need for data protection and virus defense is propelling growth in the mobile phone insurance market, as users actively seek coverage against these threats alongside physical damage protection. This scenario creates opportunities for bundled insurance plans that offer comprehensive protection for mobile devices.

Smartphones are available at a wide range of price points, with premium brands such as Apple and Samsung offering high-end models. Consequently, consumers who invest in these costly devices prioritize safeguarding them against physical damage, technological issues, and theft. Users of high-end smartphones frequently encounter software or hardware malfunctions, making technological damage a significant concern. Moreover, incidents of physical damage, theft, or loss of smartphones are becoming increasingly prevalent. Given the substantial investment in these devices, owners often find themselves tied to long-term financial commitments, making them less likely to switch devices in the event of damage. To mitigate these concerns, mobile phone insurance providers present a variety of insurance options for smartphone users. These policies generally encompass repair and replacement services, contingent on the extent of the damage and the specific insurance plan selected by the owner.

The mobile phone insurance market has experienced heightened volatility due to the rise of mobile device trade-in programs. Various stakeholders within this market manage different facets of the value chain, enabling them to develop insurance products and services that cater to specific consumer needs. For instance, AT&T offers device protection services with three distinct packages that vary in the number of devices covered and the types of services available (such as next-day screen repair delivery or same-day repair). This adaptability in service offerings enhances the consumer experience, accelerates service delivery, and ultimately fosters growth within the mobile phone insurance sector. Overall, the features and services provided by solution providers in this market are crucial drivers of its expansion.

The intricacies of mobile phone insurance policies can often be daunting, leading customers to overlook the claims process entirely. Some insurers provide a fixed coverage plan with a predetermined premium, irrespective of the smartphone model being insured. Others may offer varying premiums based on different coverage levels or types, and some may even tailor their coverage based on the operating system of the device, such as iOS or Android. This variability can create confusion among customers regarding their insurance options. To alleviate this issue, insurers are striving to simplify their terms and conditions while maximizing coverage under a single premium. These initiatives are anticipated to enhance customer understanding of the claims process and increase the adoption of mobile phone insurance plans in both developed and emerging markets. Ultimately, the growing emphasis on clarity and simplification in the mobile phone insurance sector is expected to positively influence the industry's growth in the coming years.

Prominent players in the mobile phone insurance market include Allianz SE, American International Group, Inc., Apple Inc., AT&T Inc., Aviva Insurance Limited, Better Buy Insurance, Gadget Cover, Insurance2go, Pier Insurance Managed Services Ltd., Telef?nica UK Limited, AQILO Business Consulting GmbH, Square Trade Inc., and Switched On Insurance. The report also includes secondary research on additional companies that collectively hold a significant share of the mobile phone insurance market.

The overall size of the mobile phone insurance market has been assessed through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research from both internal and external sources to gather qualitative and quantitative insights related to the mobile phone insurance market. This approach also facilitated an overview and forecast for the mobile phone insurance market across all segments. Furthermore, numerous primary interviews were conducted with industry participants and experts, including VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders specializing in the mobile phone insurance sector, to validate the data and gain analytical insights.