The increasing popularity and value of mobile devices, particularly smartphones, has created a lucrative growth area for so-called gadget insurance. And at the same time, there’s an emerging marketplace for cover that’s arranged through phone apps. The result is a virtuous circle where insurers can connect with their customers through mobile technology and also insure the gadgets that provide that connection.
Market research consultancy Finaccord estimated that the global mobile phone insurance market was worth about US$13.3billion in 2015, and would reach close to US$17.6billion by 2019. That’s small in comparison to motor and home insurance but it’s already larger than the travel insurance market, and Finaccord says it’s likely to increase at an annual rate well ahead of motor and home insurance.
So this makes a significant opportunity in a market that barely existed a decade ago, and a double plus for insurers who are already playing to the needs of smartphone users and particularly the millennial on-demand generation.