Mobile phone insurance market to hit $27b by 2020
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The global mobile phone insurance market is on track to grow to over $27 billion in revenue by the end of 2020, research from SNS Telecom indicates.
The telecoms market research company estimates that the global market will account for $20.5 billion by the end of this year, and is in line to grow at a CAGR of around 10% over the next three.
An SNS Research report notes that most major mobile operators, insurance specialists, device OEMs, retailers and even banks now offer insurance plans that specifically cover theft, loss, malfunctions and damage of mobile phones, with a particular focus on smartphones.
Many policies also combine with enhanced technical support and additional protection features such as secure cloud-based data backup facilities to give consumers additional peace of mind.
In light of the findings, smartphone insurance could be an additional avenue for mobile operators struggling with the continued erosion of their once-core voice and data revenue streams in the face of OTT substitution.
Questions & Answers
Q.What is the projected value of the global mobile phone insurance market by the end of this year?
What is the projected value of the global mobile phone insurance market by the end of this year?
The research from SNS Telecom estimates the global mobile phone insurance market will be worth $20.5 billion by the close of this year. This figure contributes to the market's overall growth trajectory towards 2020.
Q.Which entities are currently offering mobile phone insurance plans?
Which entities are currently offering mobile phone insurance plans?
Most major mobile operators, insurance specialists, device manufacturers, retailers, and even banks now provide these insurance plans. They specifically cover theft, loss, malfunctions, and damage, especially for smartphones.
Q.What additional features can be found with many mobile phone insurance policies?
What additional features can be found with many mobile phone insurance policies?
Many policies combine enhanced technical support and extra protection features, such as secure cloud-based data backup facilities. These additions aim to provide consumers with greater peace of mind regarding their devices.
Q.How could smartphone insurance benefit mobile operators?
How could smartphone insurance benefit mobile operators?
Smartphone insurance could offer an additional revenue stream for mobile operators. They are currently struggling with the ongoing decline of their traditional voice and data revenues due to competition from over-the-top services.
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