Smartphones today have become an inseparable and integral part of human lives. Human lives are mostly dependent on smartphones for day-to-day activities, which has increased the value proposition of the device. The high-value proposition of these electronic gadgets has near about mandated individuals to opt for insurance covers and reduce the risks associated with losses. In the past few decades, mobile phones have undergone incredible transformations through different designs, features, colors, shapes, and sizes. The current statistics depict a very high penetration of smartphones, especially in the advanced countries of the world. The ubiquity of smartphones is anticipated to further propel the penetration all across the globe.
In this global arena, it has become a mandate for an individual to remain connected 24/7. More than individuals, businesses have found smartphones to play a highly crucial role in seamless operations. Companies having multiple offices in multiple locations of the world are expected to connect with the employees seamlessly. Around one-half of consumers, these days are interested in receiving a replacement smartphone within four hours when lost, stolen, or damaged. Moreover, approximately 60% of the millennial population would be interested in the mobile phone insurance policy, and about a quarter of the elderly population consider it attractive if they receive a replacement within the timeframe. However, a varying trend in consumer behavior for mobile phone insurance products is observed across various regions depending upon factors such as consumer willingness and mobile phone penetration.
With an increasingly interconnected socio-economic world, technological adoption trend has quite become the defining parameter for the economic progress of the population. Increasing penetration of technologies coupled with the rapid pace of digitization has favored remarkable smartphone adoptions across the globe in the recent few years. The majority of the adoption of advanced technologies and smartphones is noticed among the developed regions across the globe; however, the emerging and developing economies are catching up the trend with an objective to be interconnected. The number of smartphone users has surpassed 5 Billion across the globe in FY2017 as compared to 3.2 Billion in FY2013. It is foreseen that the mobile phone’s industry to reach milestones in the coming years. Apart from the developed economies, the growth of the mobile phone industry is also driven by emerging countries such as China, India, Indonesia, Bangladesh, and Pakistan, among others. The evolution of the 4G network, the Internet of Things (IoT) has led the mobile industry to witness noticeable adoptions leading the market to flourish. On the other hand, Artificial Intelligence (AI) and the 5G network is the next frontier. Attributing to the advantages of the 4G/5G network, Internet of Things (IoT) and Artificial Intelligence (AI) is bolstering the market for smartphones across the globe in the current scenario. The trend is expected to rise in the coming years, thereby fuelling the growth of the smartphones industry. The mobile phone insurance industry is growing correspondingly with the smartphone industry. The more is the number of smartphone subscribers, the more is the demand for mobile phone insurance in recent times. Contributing to this huge growth of mobile phone insurance industry are the various stakeholders in the mobile phone insurance ecosystem. Network operators, smartphone manufacturers, retailers, and insurance companies have been consistently innovating and expanding their mobile phone related insurance offerings to provide their customers with a highly personalized insurance solution. The insurance companies help smartphone owners by offering theft or lost insurance, accidental coverage, and among others.
As the penetration of smartphones is increasing, the number of network providers or operators is also growing reasonably. This, in turn, brings anticipation of the mobile phone insurance industry. Various network providers operating across the globe are introducing their insurance plans to secure the smartphones with integration/joint venture with local players in the market. Besides, the network providers are also coming up with a low-cost insurance plan to attract the customers, thereby leading the market to propel.
Customized Mobile Phone Insurance Offerings for Diverse Customer Base
One of the critical factors that have played a major role in the mobile phone insurance market is the terms and conditions defined by the players. Many a times, customers fails to recall the claiming procedures altogether owing to the confusing, complex, and distinct terms and conditions put up. As an example, some of the sellers offer defined coverage plan with a fixed premium amount, where the smartphone type remains redundant. In other cases. Insurance sellers define different premiums for different smartphones. This leads to uncertainty among the customers opting for mobile phone insurance. A significant opportunity lies ahead for the insurers with respect to simplification of terms and conditions and cover maximum possible insurance policies under one premium amount. This initiative by the insurance sellers or insurer is expected to help the customers to clearly understand the terms and conditions along with the claiming procedure. Simplifying the claiming procedures as well as the terms and conditions for customers by the mobile phone insurance players could further propel adoptions globally.
Retailers or insurance companies across the globe are increasingly coming up with different insurance plans for mobile protection. Owing to the fact that smartphones have become an integral part of the day to day life and are no more a frequent purchase commodity. The factor encouraging the insurance companies or retailers to sell mobile insurance policies to their customers are the increasing incidents of damage, or lost or theft of phone. Currently, several insurance companies across the globe are offering their customers with mobile protection plans. Mobile phones, particularly smartphones, are highly vulnerable to various types of physical damage, for instance, display damage, water damage, phone bending, cracks, etc. The everyday increasing incidences of physical damage to the phones, particularly new and expensive phones, have been the critical factor driving the demand for mobile phone insurance in the market. Although there are very few companies that provide full physical damage coverage, in the coming years these solutions would become more extensive and robust owing to the dynamic consumer preferences and ever-rising consumer expectations.