Are you covered?It’s common to follow trends about mobile phone technology, new releases, etc., but news about mobile phone insurance tends to take a backseat to these admittedly more exciting topics. While it may not make headlines, the global mobile phone insurance market is active and growing quickly. Worth an estimated $22.6bn in 2018, it is expected to grow to over $38bn by 2024 at a compound annual growth rate of nine percent. Why? As the sophistication and cost of devices increases, the average selling price (ASP) is driving an influx of insurance options for mobile devices. If you consider the number of jobs we assign to smartphones — banking, shopping, smart home management, work management, calendar management, social media, news, entertainment, messaging and communication — it is remarkable, and it makes sense that consumers insure their expensive devices.
What about the UK, specifically?Currently, only one in four smartphone owners in the UK has insurance to protect their device against accidental damage, loss and theft, despite the fact that studies that show almost 50 percent of people damage their smartphones at some point in time. The number of insured owners is predicted to rise in line with changes in technology and the increasing value of devices, but the challenge for insurance scheme owners is that in a very competitive marketplace, insurance premiums have not kept pace with the high cost of repairing and replacing devices, which has been growing for the past five years.
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