Mobile-Phone Insurance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Phone Type (Budget Phones, Mid & High-end Phones, Premium Smartphones), By Coverage (Physical Damage, Internal Component Failure, Theft & Loss Protection, Virus & Data Protection, Others), By Region & Competition, 2020-2030F

Market Overview

The Global Mobile-Phone Insurance Market was valued at USD 33.45 billion in 2024 and is expected to reach USD 68.42 billion by 2030 with a CAGR of 12.67% through 2030. 

Mobile-phone insurance is a service that provides coverage for smartphone owners against damage, theft, loss, or malfunctioning of their devices. As smartphones have become an essential part of daily life, individuals and businesses are increasingly investing in insurance plans to protect their devices from unexpected expenses such as screen repairs, water damage, or accidental drops. This insurance typically covers a wide range of risks including accidental damage, theft, and malfunctions after the manufacturer’s warranty expires. The Mobile-Phone Insurance Market is expected to rise significantly due to several factors. The global increase in smartphone ownership and usage has created a larger customer base, with people relying more on their devices for personal, professional, and financial activities. The growing dependence on mobile phones for day-to-day tasks makes device protection essential, further driving demand for mobile-phone insurance. As smartphones become more expensive, consumers are seeking ways to mitigate the high costs of repairs or replacements. The rise in repair costs, particularly for high-end models, is encouraging consumers to purchase insurance policies to protect their investment. Another key factor contributing to the growth of the market is the expanding availability of mobile-phone insurance through various channels, such as mobile carriers, insurance companies, and third-party providers, making it easier for consumers to access these services. As the trend of e-commerce and online shopping continues to grow, purchasing mobile-phone insurance has become more convenient, with customers able to compare plans and purchase coverage online. The increasing awareness of the benefits of mobile-phone insurance, combined with promotions and bundled offers from mobile service providers, has also contributed to market growth. The market is expected to continue expanding due to ongoing technological advancements in mobile phones, such as foldable screens and 5G capabilities, which increase repair costs and fuel the demand for insurance. As mobile phones become more integrated into critical aspects of life, the need for insurance to protect these devices will drive sustained growth in the market, particularly in regions with high smartphone penetration like North America, Europe, and Asia Pacific. Mobile phone penetration worldwide has reached approximately 5.4 billion users by 2024, representing a 70% global penetration rate. The number of mobile subscribers is expected to continue increasing, with growth in both developed and developing markets.

Key Market Drivers

Increasing Mobile Phone Penetration and Usage

The growth of the mobile phone industry, both in terms of sales and usage, is one of the most significant drivers for the Mobile-Phone Insurance Market. With the ever-increasing dependence on smartphones for communication, entertainment, business, and daily activities, mobile phones have become an essential tool in people’s lives. This heightened use has led to a higher likelihood of damages, loss, or theft of mobile devices, resulting in an increasing demand for mobile-phone insurance. In recent years, mobile phones have evolved from simple communication tools to advanced devices with high-end features such as cameras, touch screens, and sophisticated processors. These devices are highly prone to damage due to accidental drops, water exposure, or general wear and tear. As the number of mobile phone users continues to grow worldwide, the need for insurance that protects consumers from unexpected expenses related to mobile phone damage or loss has risen accordingly. The penetration of mobile phones into emerging markets has been a key factor in expanding the reach of mobile-phone insurance. In developing economies, consumers are increasingly investing in smartphones as their primary means of accessing the internet and engaging with digital content. This shift in consumer behavior leads to a greater demand for insurance products tailored to the specific needs of mobile phone users in these regions. The increase in mobile phone usage also correlates with a higher frequency of damages and repairs. Accidental screen breaks, battery failures, and water damage are common issues that users face, making insurance plans highly valuable. As mobile phone technology continues to advance and phones become more expensive, consumers are more likely to purchase insurance to protect their devices and mitigate the financial risk of unexpected repairs or replacements. The number of smartphone users is also growing rapidly, surpassing 6.5 billion by 2024, with smartphones now representing more than 95% of all mobile phone devices globally.

Rising Repair and Replacement Costs

The increasing cost of mobile phone repairs and replacements is another major driver fueling the growth of the Mobile-Phone Insurance Market. As mobile phone models become more advanced, the costs associated with repairing or replacing damaged devices have escalated. High-end smartphones, with their complex components and cutting-edge technology, require specialized parts and skilled technicians for repairs, making the repair process more expensive. For instance, replacing a broken screen on a high-end smartphone can cost a significant amount, with some repairs reaching hundreds of dollars. In many cases, the repair costs can exceed the cost of a basic insurance policy, leading consumers to opt for insurance to avoid these high out-of-pocket expenses. Consumers who cannot afford the high upfront cost of a new device may find that mobile-phone insurance offers an affordable way to mitigate the financial burden of repairs or replacements. The surge in mobile phone repair costs is partly driven by the high price of original equipment manufacturer (OEM) parts. Manufacturers, in an effort to maintain brand quality and protect intellectual property, often price replacement parts at a premium. This trend is evident with major brands such as Apple, whose replacement parts can be significantly more expensive than third-party alternatives. Mobile-phone insurance providers have responded to this trend by offering more comprehensive policies that cover the cost of repairs or replacements, making it easier for consumers to access affordable solutions when their devices are damaged or malfunction. The rise in mobile phone theft has contributed to the increased demand for insurance. Replacing a stolen mobile phone can be costly, especially for high-end models, and insurance coverage provides users with peace of mind knowing they will not have to bear the full financial burden of replacing a lost or stolen device. As mobile phones become central to daily activities, mobile usage continues to rise. The average screen time per user has increased to over 4.5 hours per day in 2024, with users spending more time on apps, browsing, and conducting transactions via mobile devices.

Awareness of Mobile-Phone Insurance Benefits

Growing awareness about the benefits of mobile-phone insurance is another critical driver contributing to the expansion of the Mobile-Phone Insurance Market. As consumers become more educated about the potential risks associated with mobile phone ownership, they are increasingly opting for insurance to protect their devices. In the past, many consumers were unaware of the financial implications of mobile phone damage, loss, or theft. However, as mobile phones have become more integral to everyday life and their value has increased, the awareness of the need for protection has grown. Many mobile-phone insurance companies are actively marketing their products, emphasizing the financial protection and peace of mind that insurance coverage provides. Through advertisements, online campaigns, and partnerships with mobile phone retailers, insurance providers are educating consumers about the risks they face as mobile phone owners and the value of having insurance in place. Mobile-phone insurance not only covers the costs of repairs and replacements but often includes additional benefits such as protection against accidental damage, water damage, and theft. With more consumers understanding these benefits, the uptake of mobile-phone insurance has increased significantly. Many mobile phone retailers and carriers now offer insurance packages directly to consumers at the point of sale, making it easier for customers to sign up for coverage immediately after purchasing a device. The ease of purchasing insurance policies online and through mobile apps has made it more convenient for consumers to access insurance services. As a result, the growing awareness and accessibility of mobile-phone insurance are driving greater adoption rates among consumers. The market value for mobile-phone insurance is estimated to exceed USD 30 billion by 2028, as more consumers opt for protection plans to safeguard against accidental damage, theft, and malfunction.

Rising Incidents of Theft and Accidental Damage

The increasing incidence of mobile phone theft and accidental damage is another critical driver of the Mobile-Phone Insurance Market. Mobile phones are not only expensive but also highly portable, making them prime targets for theft. In urban areas, where the risk of theft is higher due to crowded environments and increased opportunities for pickpocketing, the demand for mobile-phone insurance has surged. Accidental damage, such as cracked screens, water damage, or malfunctioning hardware, is also a frequent issue faced by mobile phone users. Many consumers are aware that their devices are vulnerable to these types of damage, leading them to seek insurance coverage that can help mitigate repair or replacement costs. In regions with high theft rates or extreme weather conditions, mobile-phone insurance has become increasingly necessary to safeguard against potential financial loss. The rise in theft incidents, coupled with the frequent occurrence of accidents that result in device damage, has amplified the need for comprehensive insurance coverage. By offering financial protection against theft and accidental damage, mobile-phone insurance provides consumers with peace of mind and ensures that they are not left facing high repair or replacement costs in the event of unforeseen circumstances. In summary, the rising incidents of theft and accidental damage are key factors driving the Mobile-Phone Insurance Market. As more consumers seek to protect their valuable devices from the risks of theft and accidents, the demand for insurance coverage will continue to grow.

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Key Market Challenges

High Customer Acquisition Costs

One of the significant challenges in the Mobile-Phone Insurance Market is the high customer acquisition costs. Acquiring new customers in a competitive market can be expensive, particularly when consumers are not always inclined to purchase insurance plans at the time of purchasing a mobile phone. While some customers are proactive about insuring their devices, many tend to overlook the need for insurance until a situation arises where they experience loss or damage to their mobile phones. This delay in decision-making presents a major hurdle for insurance providers, as they have to invest significantly in marketing and promotional strategies to capture the attention of potential customers. The challenge of high customer acquisition costs is exacerbated by the increasing competition in the mobile-phone insurance industry. Numerous providers, including mobile network operators, independent insurers, and even mobile manufacturers, offer mobile-phone insurance plans. Each of these entities is vying for consumer attention through aggressive advertising, partnerships with retailers, and online promotions. To stand out in such a crowded marketplace, insurance providers often have to spend substantial resources on digital marketing campaigns, special discounts, and bundled offers, which can drive up customer acquisition expenses. Customer retention is a persistent issue for mobile phone insurers. Many customers opt for a one-time insurance plan and may not renew their coverage after the policy term expires. This behavior leads to a continuous need for acquiring new customers, thus creating a cycle of high marketing costs. For mobile-phone insurance providers, the challenge lies not only in attracting new customers but also in maintaining customer loyalty over time, which further increases their customer acquisition costs. With the advent of online platforms and mobile applications, customers have become more discerning and price-sensitive. Many consumers now compare policies across multiple providers, scrutinizing the fine print and evaluating premiums, coverage options, and deductibles before making a purchase. This comparison-driven buying behavior further increases the marketing cost per customer, as insurers have to spend more on advertisements and incentives to differentiate themselves from the competition. To address this challenge, insurance providers must look for innovative ways to reduce customer acquisition costs. One potential solution is to collaborate with mobile phone manufacturers and retailers to integrate insurance offerings into the point-of-sale process. This can ensure that customers are exposed to insurance options at the moment they are most likely to purchase a new phone, reducing the need for expensive marketing campaigns. Insurers could explore loyalty programs or incentives for existing customers to reduce churn rates and improve long-term customer retention.

Fraud and Claims Management Issues

Fraudulent claims and challenges related to claims management represent another substantial challenge for the Mobile-Phone Insurance Market. As with any insurance sector, mobile-phone insurance providers face the risk of fraudulent claims, where customers may attempt to exploit the system by fabricating damage reports, misrepresenting lost or stolen devices, or seeking compensation for incidents that do not align with the terms and conditions of their policies. Fraud not only leads to financial losses for insurance companies but also increases the overall operational costs of managing claims, which in turn raises premiums for all customers. The nature of mobile-phone insurance claims, particularly those involving theft or loss, creates a conducive environment for fraudulent activities. A mobile phone is often a highly personal item, and customers may exaggerate the extent of damage or loss to avoid paying for repairs or replacing the device out of their own pocket. In some cases, individuals may report stolen phones in order to profit from an insurance payout. This issue is compounded by the fact that mobile phones can be difficult to track once they are lost or stolen, making it harder for insurance companies to verify the legitimacy of claims. The claims process itself can also be a major challenge. Insurers must implement robust and efficient systems to handle claims quickly and fairly, but at the same time, they must ensure that fraudulent claims are detected. This delicate balance between processing legitimate claims promptly and protecting against fraudulent activities requires the investment in sophisticated technology, including artificial intelligence and machine learning systems, to flag suspicious behavior. However, these technologies come at a cost, which may further drive up the operational expenses for insurers. In addition to fraud, the management of claims also involves dealing with customer dissatisfaction. Many customers find the claims process to be cumbersome, time-consuming, and not always transparent. In some cases, customers may feel that their claims are denied unfairly or that the payout is insufficient to cover the full cost of repairs or replacement. This negative customer experience can lead to reputational damage for insurance providers, further complicating their efforts to build trust and retain customers. To address these issues, mobile phone insurers must focus on implementing more stringent fraud prevention measures. This may include conducting thorough investigations into claims, requiring police reports for stolen devices, and using tracking technology to verify lost or stolen phones. Insurers should invest in improving the overall customer experience by streamlining the claims process, providing clear communication about policy terms, and offering transparency in the claims adjudication process.

Coverage Limitations and Customer Expectations

The limitations of coverage and the gap between customer expectations and what mobile-phone insurance policies offer represent a significant challenge in the Mobile-Phone Insurance Market. While mobile-phone insurance can provide valuable protection against loss, theft, or accidental damage, many customers are often disappointed to find that the coverage does not extend to all types of incidents or that there are significant limitations to the extent of coverage. One of the most common sources of dissatisfaction stems from the terms and conditions of the insurance policies themselves. Many policies have exclusions, such as damage caused by misuse or cosmetic damage that does not affect the functionality of the device. Many policies have high deductibles or limited payouts, which may not fully cover the repair or replacement costs of a high-end smartphone. For example, a policy may cover a cracked screen, but it might not cover damage resulting from water exposure or accidental drops. This discrepancy between customer expectations and actual coverage leads to frustration, as customers often believe they are fully protected, only to discover later that their claims are not covered under the policy. As mobile phones become more expensive and technologically advanced, customers expect more comprehensive insurance coverage that reflects the value of their devices. However, many insurance policies continue to offer basic coverage that only addresses common issues, such as screen damage or battery failure, without factoring in the broader risks associated with modern smartphones, such as software issues, data breaches, or advanced hardware malfunctions. As consumers become more knowledgeable about the limitations of their insurance policies, they may seek to purchase additional coverage or turn to alternative providers, which can increase the churn rate for insurers. The rising consumer expectation for more comprehensive and flexible insurance coverage has led to a shift in the market. In response, some insurers are beginning to offer more tailored and customizable insurance plans that allow customers to select specific coverage options based on their individual needs. This approach enables insurers to better meet customer expectations while providing more transparency around what is covered and what is excluded. However, offering more extensive coverage options can significantly increase the cost of premiums. For mobile-phone insurance providers, the challenge lies in striking the right balance between providing comprehensive coverage that meets customer demands and ensuring that the policies remain affordable and profitable. Failure to address customer expectations effectively could lead to a loss of business to more competitive providers or alternative insurance models.

Key Market Trends

Integration of Mobile-Phone Insurance with Retail and Carrier Partnerships

One of the significant trends in the Mobile-Phone Insurance Market is the growing integration of insurance offerings with retail and mobile carrier partnerships. Mobile phone retailers and network carriers are increasingly collaborating with insurance providers to offer comprehensive protection plans at the point of sale. By bundling insurance with the purchase of a mobile phone, these partnerships make it easier for consumers to opt for insurance at the time of device acquisition, increasing the likelihood of purchasing coverage. This trend is beneficial for both insurance companies and consumers. For insurance providers, partnering with mobile phone retailers and carriers offers direct access to a large customer base, allowing them to offer insurance plans without relying heavily on traditional marketing channels. Retailers and carriers, on the other hand, benefit from offering an added value proposition to their customers, enhancing their sales experience and creating customer loyalty. The convenience of signing up for insurance during the phone purchase process increases overall uptake rates, ensuring a broader customer base for insurers. For consumers, these partnerships simplify the process of acquiring insurance, as they can seamlessly add protection to their mobile phones without needing to seek out separate policies. Many of these plans offer customization options, allowing consumers to choose coverage based on their specific needs, such as accidental damage, theft, or even water damage. As mobile phones continue to grow in importance and value, this trend toward integrated offerings is expected to expand, particularly in regions with high mobile penetration rates.

Expansion of Insurance Coverage for Accidental Damage and Theft

The expansion of insurance coverage for accidental damage and theft is a prominent trend in the Mobile-Phone Insurance Market. With mobile phones becoming increasingly integral to daily life, consumers are seeking more comprehensive protection that covers a broader range of risks beyond simple screen damage or battery malfunction. As a result, insurers are expanding their offerings to include protection against accidental damage, water exposure, and theft. In particular, the rise in mobile phone theft is a key driver behind this trend. With smartphones becoming more expensive and a prime target for theft in urban environments, insurance providers are focusing on enhancing their coverage to include theft protection. This can involve offering coverage that reimburses consumers for the loss of their device in the event of a theft, with the added benefit of providing the option to replace the phone quickly, minimizing downtime. Accidental damage coverage has also seen significant expansion. Consumers increasingly want protection against a variety of unforeseen incidents, such as dropping their phone in water or shattering the screen. Mobile-phone insurance policies that provide coverage for these common yet costly issues are highly appealing to consumers, especially those with high-end devices. The trend towards more comprehensive coverage not only meets the evolving needs of consumers but also provides insurers with opportunities to offer value-added services that set them apart in a crowded market. As consumers continue to demand more protection for their devices, the trend of offering extensive coverage for accidental damage and theft is expected to gain even more momentum.

Rise of Digital and App-Based Mobile-Phone Insurance Solutions

The increasing digitization of the insurance industry is a significant trend in the Mobile-Phone Insurance Market. Consumers are increasingly looking for digital solutions that streamline the process of purchasing, managing, and claiming insurance. As a result, insurers are adopting digital platforms, mobile applications, and online tools to enhance the customer experience and improve service efficiency. Through mobile applications and online portals, customers can quickly sign up for insurance, manage their policies, and submit claims with minimal effort. For example, many insurers now offer apps that allow customers to file a claim by simply uploading photos of the damaged device and providing relevant information, significantly speeding up the claims process. This shift toward digital claims processing is not only more convenient for consumers but also reduces the administrative burden for insurers, leading to cost savings and faster response times. App-based solutions often include additional features, such as real-time tracking of claim status, digital repair booking, and instant customer support, further improving the customer experience. This convenience is particularly appealing to younger, tech-savvy consumers who expect seamless, digital-first services. Another significant advantage of digital platforms is the ability to use data analytics to personalize offerings and pricing. By analyzing user behavior and preferences, insurers can offer tailored insurance policies, adjust premiums based on individual risk factors, and provide customers with personalized advice and alerts.

Segmental Insights

Phone Type Insights

Premium Smartphones dominated the Mobile-Phone Insurance Market in 2024 and is expected to maintain its dominance during the forecast period. Premium smartphones, which include high-end devices from brands like Apple, Samsung, and Google, have witnessed a surge in both sales and value, driving the demand for comprehensive insurance coverage. These devices, with their advanced features, higher prices, and delicate construction, are more prone to damage or theft, making insurance a highly sought-after service. As consumers continue to invest significant amounts in premium devices, the need to protect such investments through mobile-phone insurance remains a priority. Insurance policies for premium smartphones typically cover a wider range of risks, including accidental damage, theft, and even water damage, providing consumers with peace of mind. As the price of premium smartphones continues to rise, particularly with the introduction of new models with cutting-edge technologies, the cost of repair or replacement becomes prohibitive, further propelling the demand for insurance. The growing awareness among consumers regarding the benefits of mobile-phone insurance for expensive devices contributes to the continued growth of this segment. As premium smartphones increasingly represent a substantial portion of the market, the trend of insuring these devices is expected to persist, keeping the segment as the dominant player in the Mobile-Phone Insurance Market over the forecast period.

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Regional Insights

North America dominated the Mobile-Phone Insurance Market in 2024 and is anticipated to maintain its leadership throughout the forecast period. The high adoption of mobile phones, particularly premium smartphones, and the increasing reliance on these devices for personal and professional activities have driven a strong demand for mobile-phone insurance in this region. North America, especially the United States, has a large and tech-savvy consumer base that is highly inclined to invest in insurance products that provide protection against loss, theft, and accidental damage. The presence of major mobile carriers and retailers who actively offer bundled insurance plans at the point of sale has contributed to higher penetration rates. The region also sees a relatively higher average cost of mobile phones, with consumers more likely to insure their expensive devices to avoid significant repair or replacement costs. The growing trend of digitalization and the use of mobile applications to manage insurance policies has facilitated easier access to mobile-phone insurance in North America. The increasing awareness about the financial risks associated with device damage or theft and the availability of customized insurance plans tailored to the needs of individual consumers further fuel market growth. As technological advancements continue and mobile phones become even more integrated into daily life, North America is poised to maintain its position as the dominant region in the Mobile-Phone Insurance Market throughout the forecast period. The combination of high consumer purchasing power, advanced technology infrastructure, and extensive retail and carrier partnerships positions North America as the leader in this market.

Recent Developments

• In March 2024, Open made a significant move into the UK insurance market with the acquisition of SO-SURE, a UK-based InsurTech. This strategic acquisition, finalized on 11th March, allows Open to leverage SO-SURE’s award-winning mobile protection and contents products to accelerate growth in the UK. Open, known for its partnerships with leading brands like Bupa and Polestar, offers embedded insurance products across car, home, travel, and landlord sectors. The company has experienced rapid expansion, tripling its revenues since securing a USD 31 million Series B investment in 2021.
• In January 2024, Allianz Partners launched the allyz mobile app, a digital platform designed to provide travelers with expert advice, personalized recommendations, and access to a full range of insurance benefits. Initially introduced as a web app in 2020, allyz is now available in France, Germany, and the Netherlands, marking a significant step in Allianz Partners’ digital expansion. CEO Tomas Kunzmann emphasized that the app offers more than just financial protection; it delivers a seamless, intuitive travel experience, integrating insurance into everyday life through advanced digital solutions.
•  In Jan 2024,Samsung Electronics has expanded its Samsung Care+ mobile insurance service, further enhancing its coverage options for users. The updated Samsung Care+ plan now provides more comprehensive insurance, including coverage for accidental damage, theft, and hardware failure.
• In Jan 2024,Verizon has expanded its mobile-phone insurance offerings by launching a new Protect Home service alongside an enhancement of its existing Verizon Mobile Protect plan. The company is focusing on delivering a more comprehensive insurance experience for its customers, integrating not only mobile-phone protection but also smart home device coverage.

Key Market Players

• Apple Inc.
• Verizon Communications Inc.
• Samsung Electronics Co., Ltd.
• Assurant, Inc.
• SquareTrade, Inc.
• Allianz SE
• Asurion, LLC
• American International Group, Inc. 
• T-Mobile US, Inc.
• CPP Assistance Services Pvt Limited 

Report Scope:

In this report, the Global Mobile-Phone Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Mobile-Phone Insurance Market, By Phone Type:

o   Budget Phones

o   Mid & High-end Phones

o   Premium Smartphones  

• Mobile-Phone Insurance Market, By Coverage:

o   Physical Damage

o   Internal Component Failure

o   Theft & Loss Protection

o   Virus & Data Protection

o   Others

• Mobile-Phone Insurance Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

§  Belgium

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

§  Indonesia

§  Vietnam

o   South America

§  Brazil

§  Colombia

§  Argentina

§  Chile

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

§  Turkey

§  Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Mobile-Phone Insurance Market.

Available Customizations:

Global Mobile-Phone Insurance Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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