About Mobile Phone Insurance
The mobile phone insurance refers to the insurance or coverage taken by the cell phone users looking to insure their cell phones from different kinds of damages or losses. The coverage is provided to the insured in case of losses and damages against riot, strike, malicious damage, terrorist activities, fire, theft, accident, and fortuitous circumstances. Mobile phone insurance helps evade expensive replacement costs in case of mobile phone breakdown.
Technavio’s analysts forecast the global mobile phone insurance market to grow at a CAGR of 10.47% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global mobile phone insurance market for 2016-2020. To calculate the market size, the report considers the premiums earned from mobile phone insurance and extended warranties that are sold in conjunction with the mobile phone market in the Americas, Asia Pacific (APAC), and Europe, the Middle East, and Africa (EMEA). The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Mobile Phone Insurance Market 2016-2020
Technavio recognizes the following companies as the key players in the global mobile phone insurance market: Asurion, Aviva, iQmetrix Software Development, NTT DOCOMO, and ProtectCELL.
Other Prominent Vendors in the market are: AT&T, Sprint, Square Trade, and Verizon.
Commenting on the report, an analyst from Technavio’s team said: “Leveraging social media channels for better customer connectivity and market penetration will be a major trend for market growth. Customers from different segments look for click-to-call or click-to-chat options through different portals such as smartphones or tablets. This will help top mobile phone insurance vendors to boost the quality of customer experience. Digital marketing platforms are the best way to keep customers engaged and promote mobile phone insurance products.”
According to the report, creating favorable environment to improve profitability will be a key driver for market growth. Mobile phone insurance companies are enforcing professional and disciplined underwriting practices to ensure healthy growth in emerging as well as developed markets. Such initiatives should ensure companies to operate on a sustainable basis. In addition, we expect the capital management of the mobile phone insurance market to support vendors' growth and tighten solvency capital requirements during the forecast period. In the current market scenario, the insurance policymakers play an influential role in strengthening private sector vendors by providing them with incentives and allocating sufficient resources dedicated to regulatory infrastructures.
Further, the report states that drawbacks in MNO partnerships will be a challenge for the market. The insurer-driven models, engagement of technical services providers, and MNO-driven models are prevalent in the current market scenario. It is important for the insurers to make proper strategy, thereby structuring the partnership agreement with clarity in roles and responsibilities. The insurer needs to focus on providing products that are affordable, suitable, valuable, understandable, and efficient to meet the needs of customers. Sometimes unequal power balance in the partnership may be caused due to the payment made by the MNO under the group coverage policy. Therefore, it is important for supervisors and regulators of the financial and telecommunication sector to jointly oversee MNO-driven multi-partner business models.
Asurion, Aviva, iQmetrix Software Development, NTT DOCOMO, ProtectCELL, AT&T, Sprint, Square Trade, Verizon.
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