Smartphone insurance policies provide protection against a variety of perils and damages to the phone. Given that smartphones are electronic devices, they could be prone to software failure which can often render the device useless. Besides internal damage, external damage can also occur due to various reasons.
Only 1 in 5 smartphone buyers choose to add device insurance. So there is huge headroom for growth across both traditional and emerging players. An amazing 90%* of insurance buyers are Completely/Mostly Satisfied.
Smartphone Insurance is largely untapped beyond USA.
US attach rates for smartphone insurance are double those seen in other countries. This reflects the higher share of Apple iPhone devices in the base and the more advanced share of 5G relative to other countries in this wave of research. Awareness of insurance options is significantly lower outside of the US.
- Germans more likely to use insurance to repair smartphones than replace
Acceleration of 5G sales, the emergence of foldable form factors and continued imaging feature wars will drive retail ASP higher and further encourage insurance revenue.
Significant upside potential is seen with 1 in 3 intenders expecting to buy insurance for their next smartphone. Brazilian online users are most bullish with insurance penetration expected to jump +20 points for their next smartphone. Unsurprisingly, insurance take-up is positively correlated with device price tier and Apple owners have the highest attach rates (+7 pts vs Samsung).
1 in 3 owners think they don’t need insurance because they are careful with their smartphones. results vary by country and demographics.
However, the industry is missing significant opportunities with 1 in 3 non-insured reporting they either weren’t offered insurance or were unaware of benefits of insurance. Over 20% of smartphone buyers are unsure yet and could be convinced to buy insurance with the right value propositions.
Smartphone Insurance and the broader market for insurance of smart wearables, smart speakers and other smart home products remains relatively undeveloped.
How much does it cost to insurance a phone?
*The sample included consumers 18+ years old, nationally representative of key demographics such as gender, age, income, region.
Over 6,000 surveys were completed:
US – 1277
UK – 1224
Australia – 1,242
Brazil – 1,291
Germany – 1,213