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.
Until now, people have often been reluctant to buy insurance for smartphones and other mobile devices, mainly because products were complex or not readily available. But that’s changing thanks to the creation of apps that make it easy to insure your home, car or latest iPhone.
The mobile marketplace is a fast-developing field in which RDT is playing a leading role with initiatives such as Trice, which offers gadget insurance as well as cover for motor and home. For a demonstration of the app, visit RDT’s stand at TINtech on 15 June.
Mobile devices such as smartphones and tablets are changing all aspects of our lives, from everyday purchases to how we manage our finances. Insurers are cottoning on fast, and there’s now a growing online marketplace for cover arranged through insurance apps.