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.