The Big
The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
Table of Contents 1
2
Chapter 1: Introduction ............................................................................... 10 1.1
Executive Summary........................................................................................................................... 10
1.2
Topics Covered ................................................................................................................................. 11
1.3
Historical Revenue & Forecast Segmentation ...................................................................................... 11
1.4
Key Questions Answered ................................................................................................................... 12
1.5
Key Findings ..................................................................................................................................... 12
1.6
Methodology.................................................................................................................................... 13
1.7
Target Audience ............................................................................................................................... 14
1.8
Companies & Organizations Mentioned ............................................................................................. 15
Chapter 2: An Overview of Mobile Phone Insurance ...................................... 17 2.1
The Role of Insurance in Our Daily Lives ............................................................................................. 17
2.2
Why Have Mobile Phone Insurance? .................................................................................................. 18
2.3
What Risks Are Typically Covered? ..................................................................................................... 19
2.3.1
Accidental, Malicious or Liquid Damage ................................................................................... 19
2.3.2
Electrical or Mechanical Breakdown ........................................................................................ 19
2.3.3
Theft or Loss .......................................................................................................................... 19
2.3.4
Unauthorized Calls & Usage .................................................................................................... 19
2.3.5
Data Backup Facilities............................................................................................................. 19
2.3.6
Overseas Cover ...................................................................................................................... 20
2.3.7
Accessories ........................................................................................................................... 20
2.3.8
Others................................................................................................................................... 20
2.4
Distribution Channels for Insurance Plans ........................................................................................... 20
2.4.1
Wireless Carrier Branded ........................................................................................................ 20
2.4.2
OEM-Provided ....................................................................................................................... 21
2.4.3
Associated with Bank Accounts ............................................................................................... 21
2.4.4
Retailers ................................................................................................................................ 21
2.4.5
Other Direct-to-Consumer ...................................................................................................... 21
2.5
Market Drivers ................................................................................................................................. 21
2.5.1
Growing Penetration of Smartphones...................................................................................... 21
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
2.5.2
BYOD: Perfect Candidates for Insurance .................................................................................. 22
2.5.3
Reducing Service Disruption ................................................................................................... 22
2.5.4
Proliferation of Large Screen Devices ...................................................................................... 22
2.5.5
Packaged Policies ................................................................................................................... 22
2.5.6
Strong Support of Tier 1 Wireless Carriers ................................................................................ 23
2.5.7
Growth of Mobile Payments: Creating New Opportunities for Insurance .................................... 23
2.6
3
2.6.1
Consumer Disbelief in Insurance ............................................................................................. 23
2.6.2
Unclear Terms & Conditions ................................................................................................... 24
2.6.3
Fraud .................................................................................................................................... 24
2.6.4
Slow & Unfair Claims Handling ................................................................................................ 24
2.6.5
Time Limitation to Purchase Policy .......................................................................................... 24
Chapter 3: Value Chain & Future Roadmap ................................................... 25 3.1
5
Value Chain ...................................................................................................................................... 25
3.1.1
Wireless Carriers .................................................................................................................... 25
3.1.2
Mobile Device OEMs .............................................................................................................. 26
3.1.3
Banks .................................................................................................................................... 26
3.1.4
Retailers ................................................................................................................................ 26
3.1.5
Underwriters & Insurance Administrators ................................................................................ 26
3.2
4
Market Barriers ................................................................................................................................ 23
Future Roadmap: 2015 - 2020............................................................................................................ 27
3.2.1
2013 - 2015: The Rise of Shared Plans with Home, Travel & Bank/Card Insurance ....................... 27
3.2.2
2015 - 2017: Integration of Other Connected Devices ............................................................... 28
3.2.3
2017 - 2020: Growing Proliferation in Developing Economies .................................................... 28
Chapter 4: Case Studies ............................................................................... 29 4.1
Telefónica Insurance: A Wireless Carrier Owned Insurance Company ................................................... 29
4.2
Asurion: Dominance in North America................................................................................................ 29
4.3
eSecuritel: Increasing Insurance Revenue for a Rural Carrier ................................................................ 30
4.4
MTN: Innovating Insurance Programs in Africa .................................................................................... 30
4.5
Microsoft: Alliances with Local Insurance Regulators ........................................................................... 31
4.6
NTT DoCoMo: Pioneering Mobile Phone Insurance in Japan ................................................................. 32
Chapter 5: Key Market Players ..................................................................... 33 ..
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
6
5.1
ACE European Group ........................................................................................................................ 33
5.2
Allianz Insurance............................................................................................................................... 33
5.3
AmTrust International Underwriters .................................................................................................. 34
5.4
Assurant .......................................................................................................................................... 35
5.5
Asurion ............................................................................................................................................ 36
5.6
Aviva ............................................................................................................................................... 37
5.7
Brightstar Corporation (eSecuritel) ..................................................................................................... 38
5.8
Carphone Warehouse ....................................................................................................................... 39
5.9
Geek Squad ...................................................................................................................................... 40
5.10
GoCare Warranty Group ................................................................................................................. 40
5.11
Hollard Group ................................................................................................................................ 41
5.12
iQmetrix ........................................................................................................................................ 41
5.13
Liberty Mutual Insurance Group ..................................................................................................... 42
5.14
Mobile Rhino (Stuckey & Company) ................................................................................................ 42
5.15
NIA (New India Assurance) ............................................................................................................. 43
5.16
NQ Mobile..................................................................................................................................... 44
5.17
Pier Insurance Managed Services .................................................................................................... 45
5.18
ProtectCELL ................................................................................................................................... 45
5.19
Protect Your Bubble ....................................................................................................................... 46
5.20
SPB ............................................................................................................................................... 47
5.21
Safeware ....................................................................................................................................... 48
5.22
SquareTrade .................................................................................................................................. 48
5.23
Supercover Insurance ..................................................................................................................... 49
5.24
Telefónica Insurance ...................................................................................................................... 50
Chapter 6: Market Analysis & Forecasts ........................................................ 51 6.1
Global Mobile Phone Insurance Revenue: 2015 - 2020 ........................................................................ 51
6.2
Regional Segmentation ..................................................................................................................... 52
6.3
Asia Pacific ....................................................................................................................................... 53
6.3.1
Australia ............................................................................................................................... 54
6.3.2
China .................................................................................................................................... 54
6.3.3
Hong Kong............................................................................................................................. 55
6.3.4
India ..................................................................................................................................... 55
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6.3.5
Indonesia .............................................................................................................................. 56
6.3.6
Japan .................................................................................................................................... 56
6.3.7
South Korea........................................................................................................................... 57
6.3.8
Malaysia ............................................................................................................................... 57
6.3.9
New Zealand ......................................................................................................................... 58
6.3.10
Pakistan ................................................................................................................................ 58
6.3.11
Philippines ............................................................................................................................ 59
6.3.12
Singapore .............................................................................................................................. 59
6.3.13
Taiwan .................................................................................................................................. 60
6.3.14
Thailand ................................................................................................................................ 60
6.3.15
Vietnam ................................................................................................................................ 61
6.3.16
Rest of Asia Pacific ................................................................................................................. 61
6.4
Eastern Europe ................................................................................................................................. 62
6.4.1
Bulgaria................................................................................................................................. 63
6.4.2
Croatia .................................................................................................................................. 63
6.4.3
Czech Republic ...................................................................................................................... 64
6.4.4
Hungary ................................................................................................................................ 64
6.4.5
Lithuania ............................................................................................................................... 65
6.4.6
Poland .................................................................................................................................. 65
6.4.7
Romania................................................................................................................................ 66
6.4.8
Russia ................................................................................................................................... 66
6.4.9
Slovak Republic ...................................................................................................................... 67
6.4.10
Ukraine ................................................................................................................................. 67
6.4.11
Rest of Eastern Europe ........................................................................................................... 68
6.5
Latin & Central America .................................................................................................................... 69
6.5.1
Argentina .............................................................................................................................. 70
6.5.2
Bolivia ................................................................................................................................... 70
6.5.3
Brazil .................................................................................................................................... 71
6.5.4
Chile ..................................................................................................................................... 71
6.5.5
Colombia............................................................................................................................... 72
6.5.6
Ecuador................................................................................................................................. 72
6.5.7
Mexico .................................................................................................................................. 73
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6.5.8
Paraguay ............................................................................................................................... 73
6.5.9
Peru ...................................................................................................................................... 74
6.5.10
Uruguay ................................................................................................................................ 74
6.5.11
Venezuela ............................................................................................................................. 75
6.5.12
Rest of Latin & Central America .............................................................................................. 75
6.6
Middle East & Africa ......................................................................................................................... 76
6.6.1
Algeria .................................................................................................................................. 77
6.6.2
Egypt .................................................................................................................................... 77
6.6.3
Iran ....................................................................................................................................... 78
6.6.4
Iraq ....................................................................................................................................... 78
6.6.5
Israel..................................................................................................................................... 79
6.6.6
Kenya.................................................................................................................................... 79
6.6.7
Morocco ............................................................................................................................... 80
6.6.8
Nigeria .................................................................................................................................. 80
6.6.9
Saudi Arabia .......................................................................................................................... 81
6.6.10
South Africa........................................................................................................................... 81
6.6.11
Sudan ................................................................................................................................... 82
6.6.12
Tanzania ............................................................................................................................... 82
6.6.13
Tunisia .................................................................................................................................. 83
6.6.14
Rest of the Middle East .......................................................................................................... 83
6.6.15
Rest of Africa ......................................................................................................................... 84
6.7
North America .................................................................................................................................. 85
6.7.1
Canada.................................................................................................................................. 86
6.7.2
USA ...................................................................................................................................... 86
6.8
Western Europe ............................................................................................................................... 87
6.8.1
Austria .................................................................................................................................. 88
6.8.2
Belgium................................................................................................................................. 88
6.8.3
France ................................................................................................................................... 89
6.8.4
Germany ............................................................................................................................... 89
6.8.5
Greece .................................................................................................................................. 90
6.8.6
Ireland .................................................................................................................................. 90
6.8.7
Italy ...................................................................................................................................... 91
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6.8.8
Netherlands .......................................................................................................................... 91
6.8.9
Portugal ................................................................................................................................ 92
6.8.10
Spain .................................................................................................................................... 92
6.8.11
Sweden ................................................................................................................................. 93
6.8.12
Turkey .................................................................................................................................. 93
6.8.13
UK ........................................................................................................................................ 94
6.8.14
Rest of Western Europe ......................................................................................................... 94
Chapter 7: Conclusion & Strategic Recommendations .................................... 95 7.1
Why is the Market Poised to Grow? ................................................................................................... 95
7.2
How Does Insurance Impact Wireless Carriers? ................................................................................... 95
7.3
Are Carrier Branded Plans Better Than Shared Plans (Home, Travel & Bank Insurance)? ......................... 96
7.4
How Does the Brand of the Mobile Device Relate to the Consumer Adoption of Insurance? ................... 96
7.5
Are Contract Mobile Customers More Likely to Adopt Insurance? ........................................................ 96
7.6
Key Trends Regarding Consumers' Purchase of Mobile Device Insurance .............................................. 97
7.7
Need for a Wider Range of Cover Options........................................................................................... 97
7.8
What is the Average Price of Device Insurance? .................................................................................. 97
7.9
How is Insuring Affecting Mobile Phone Designs? ................................................................................ 98
7.10
Product Design & Governance: Key to Success ................................................................................. 98
7.11
Wireless Carrier Owned Insurance Groups: The Answer for Coordinated Insurance Offerings .............. 98
7.12
Integrated Solutions to Lead the Market .......................................................................................... 99
7.13
Strategic Recommendations ........................................................................................................... 99
7.13.1
Recommendations for Wireless Carriers .................................................................................. 99
7.13.2
Recommendations for Mobile Device OEMs .......................................................................... 100
7.13.3
Recommendations for Retailers & Banks ............................................................................... 100
7.13.4
Recommendations for Underwriters & Insurance Administrators ............................................ 100
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
List of Figures Figure 1: Smartphone Installed Base by Region: 2011 - 2020 (Millions) ................................................................................................................................................. 18 Figure 2: Mobile Phone Insurance Value Chain ...................................................................................................................................................................................... 25 Figure 3: Mobile Phone Insurance Industry Roadmap ............................................................................................................................................................................ 27 Figure 4: Mobile Phone Claim Processing Lifecycle ................................................................................................................................................................................ 32 Figure 5: Global Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .......................................................................................................................................... 51 Figure 6: Mobile Phone Insurance Revenue by Region: 2011 - 2020 ($ Million) ..................................................................................................................................... 52 Figure 7: Asia Pacific Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................................................... 53 Figure 8: Asia Pacific Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ................................................................................................................. 53 Figure 9: Australia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ...................................................................................................................................... 54 Figure 10: China Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ......................................................................................................................................... 54 Figure 11: Hong Kong Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................................................. 55 Figure 12: India Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million)........................................................................................................................................... 55 Figure 13: Indonesia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................................................... 56 Figure 14: Japan Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ......................................................................................................................................... 56 Figure 15: South Korea Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................................... 57 Figure 16: Malaysia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................... 57 Figure 17: New Zealand Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .............................................................................................................................. 58 Figure 18: Pakistan Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 58 Figure 19: Philippines Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................................................. 59 Figure 20: Singapore Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million)................................................................................................................................... 59 Figure 21: Taiwan Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 60 Figure 22: Thailand Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 60 Figure 23: Vietnam Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 61 Figure 24: Rest of Asia Pacific Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................... 61 Figure 25: Eastern Europe Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .......................................................................................................................... 62 Figure 26: Eastern Europe Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ........................................................................................................ 62 Figure 27: Bulgaria Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 63 Figure 28: Croatia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 63 Figure 29: Czech Republic Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ........................................................................................................................... 64 Figure 30: Hungary Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 64 Figure 31: Lithuania Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................... 65 Figure 32: Poland Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 65 Figure 33: Romania Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................... 66 Figure 34: Russia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ........................................................................................................................................ 66 Figure 35: Slovak Republic Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .......................................................................................................................... 67 Figure 36: Ukraine Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ...................................................................................................................................... 67 Figure 37: Rest of Eastern Europe Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .............................................................................................................. 68 Figure 38: Latin & Central America Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................. 69 Figure 39: Latin & Central America Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ........................................................................................... 69 Figure 40: Argentina Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................................................... 70 Figure 41: Bolivia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ........................................................................................................................................ 70 Figure 42: Brazil Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .......................................................................................................................................... 71 Figure 43: Chile Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .......................................................................................................................................... 71 Figure 44: Colombia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................................................... 72 Figure 45: Ecuador Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 72 Figure 46: Mexico Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 73
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
Figure 47: Paraguay Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................... 73 Figure 48: Peru Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ........................................................................................................................................... 74 Figure 49: Uruguay Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ..................................................................................................................................... 74 Figure 50: Venezuela Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................. 75 Figure 51: Rest of Latin & Central America Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ................................................................................................. 75 Figure 52: Middle East & Africa Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................. 76 Figure 53: Middle East & Africa Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ................................................................................................ 76 Figure 54: Algeria Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 77 Figure 55: Egypt Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ......................................................................................................................................... 77 Figure 56: Iran Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................................................ 78 Figure 57: Iraq Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................................................ 78 Figure 58: Israel Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .......................................................................................................................................... 79 Figure 59: Kenya Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ......................................................................................................................................... 79 Figure 60: Morocco Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................... 80 Figure 61: Nigeria Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 80 Figure 62: Saudi Arabia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million)............................................................................................................................... 81 Figure 63: South Africa Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................................... 81 Figure 64: Sudan Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million)......................................................................................................................................... 82 Figure 65: Tanzania Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .................................................................................................................................... 82 Figure 66: Tunisia Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 83 Figure 67: Rest of the Middle East Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) .............................................................................................................. 83 Figure 68: Rest of Africa Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................................. 84 Figure 69: North America Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ........................................................................................................................... 85 Figure 70: North America Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ......................................................................................................... 85 Figure 71: Canada Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ....................................................................................................................................... 86 Figure 72: USA Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) ............................................................................................................................................ 86 Figure 73: Western Europe Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million)......................................................................................................................... 87 Figure 74: Western Europe Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ...................................................................................................... 87 Figure 75: Austria Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ..................................................................................................................... 88 Figure 76: Belgium Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ................................................................................................................... 88 Figure 77: France Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ..................................................................................................................... 89 Figure 78: Germany Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) .................................................................................................................. 89 Figure 79: Greece Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ..................................................................................................................... 90 Figure 80: Ireland Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ..................................................................................................................... 90 Figure 81: Italy Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ......................................................................................................................... 91 Figure 82: Netherlands Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ............................................................................................................. 91 Figure 83: Portugal Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ................................................................................................................... 92 Figure 84: Spain Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million)........................................................................................................................ 92 Figure 85: Sweden Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) .................................................................................................................... 93 Figure 86: Turkey Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ..................................................................................................................... 93 Figure 87: UK Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) ............................................................................................................................ 94 Figure 88: Rest of Western Europe Mobile Phone Insurance Revenue by Country: 2011 - 2020 ($ Million) .......................................................................................... 94
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
1
Chapter 1: Introduction
1.1
Executive Summary
Given the increasing prevalence of expensive household goods, cars and consumer electronics, insurance has become an unavoidable and often necessary cost in modern life. Mobile phones, and smartphones in particular are no exception to this trend. Most major wireless carriers, insurance specialists, device OEMs, retailers and even banks now offer insurance plans that cover theft, loss, malfunctions and damage of mobile phones. Many policies now also integrate enhanced technical support and additional protection features such as data backup facilities, allowing users to securely backup their phone data online. SNS Research estimates that the global mobile phone insurance market is expected for account for nearly $31 Billion in revenue by the end of 2015. The market is further expected to grow at a CAGR of nearly 10% over the next five years, eventually accounting for over $48 Billion in revenue by the end of 2020. This report presents an in-depth assessment of the mobile phone insurance ecosystem including market drivers, challenges, opportunities, value chain, future roadmap, case studies, ecosystem player profiles and strategies. The report also presents market size forecasts from 2015 through to 2020. The forecasts are segmented for 6 regional and 64 country level markets. The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report.
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
1.2
Topics Covered
The report covers the following topics:
Mobile phone insurance ecosystem
Market drivers and barriers
Insurance policy structure, distribution channels and key trends
Industry roadmap, value chain and case studies
Profiles and strategies of 24 leading ecosystem players
Strategic recommendations for ecosystem players
Market analysis and forecasts from 2015 till 2020
1.3
Historical Revenue & Forecast Segmentation
Market forecasts are provided for the following regional and country level submarkets:
Regional Segmentation -
Asia Pacific
-
Eastern Europe
-
Latin & Central America
-
Middle East & Africa
-
North America
-
Western Europe
Country Level Segmentation -
Algeria, Argentina, Australia, Austria, Belgium, Bolivia, Brazil, Bulgaria, Canada, Chile, China, Colombia, Croatia, Czech Republic, Ecuador, Egypt, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Japan, Kenya, Lithuania, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Nigeria, Pakistan, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, Slovak Republic, South Africa, South Korea, Spain, Sudan, Sweden, Taiwan, Tanzania, Thailand, Tunisia, Turkey, UK, Ukraine, Uruguay, USA, Venezuela and Vietnam
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
1.4
Key Questions Answered
The report provides answers to the following key questions:
How big is the mobile phone insurance opportunity?
What trends, challenges and barriers are influencing its growth?
How is the ecosystem evolving by region?
What will the market size be in 2020 and at what rate will it grow?
Which countries will see the highest percentage of growth?
Who are the key market players and what are their strategies?
What risks are typically covered in mobile phone insurance offerings?
How can insurance help wireless carriers in reducing churn?
What strategies should wireless carriers, device OEMs and insurance providers adopt to remain competitive?
1.5
Key Findings
The report has the following key findings:
SNS Research estimates that the global mobile phone insurance market is expected for account for nearly $31 Billion in revenue by the end of 2015
The market is further expected to grow at a CAGR of nearly 10% over the next five years, eventually accounting for over $48 Billion in revenue by the end of 2020
In an effort to boost the uptake of mobile phone insurance, wireless carriers and insurance providers have extensively enhanced their insurance offerings with the addition of data protection/recovery features and integrated technical support
Mobile device OEMs are keen to develop alliances with local insurance regulators to improve the sales prospects of their smartphones sold through their branded retail stores
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
1.6
Methodology
The contents of this report have been accumulated by combining information attained from a range of primary and secondary research sources. In addition to analyzing official corporate announcements, policy documents, media reports, and industry statements, SNS Research sought opinions from leading industry players within the mobile phone insurance ecosystem to derive an unbiased, accurate and objective mix of market trends, forecasts and the future prospects of the industry between 2015 and 2020.
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
1.7
Target Audience
The report targets the following audience:
Insurance companies
Wireless carriers
Mobile device OEMs
Retailers and banks
Content providers and distributors
Regulatory authorities
Investors
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
1.8
Companies & Organizations Mentioned
The following companies and organizations have been reviewed, discussed or mentioned in the report: A Wireless
Liberty Mutual Insurance Group
ACE European Group
Markerstudy
Allianz Insurance
Microsoft
AmTrust International Underwriters
Mobile Rhino (Stuckey & Company)
Appalachian Wireless
MTN
Assurant
NIA (New India Assurance)
Asurion
Nokia
AT&T
NQ Mobile
AT&T Mobility
NTT DoCoMo
Aviva
Pier Insurance Managed Services
Best Buy
Protect Your Bubble
Brightstar Corporation
ProtectCELL
Carphone Warehouse
Safeware
Diamond Wireless
SPB
EE
Sprint
eSecuritel
SquareTrade
First Direct
Supercover Insurance
Fonesure
Telefónica Group
Fortegra
Telefónica Insurance
Geek Squad
The Allianz Group (Allianz SE)
GoCare Warranty Group
T-Mobile
Hollard Group
Verizon Communications
HSBC Bank
Verizon Wireless
iQmetrix
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
Copyright SNS Research Ltd, 2015. All rights reserved. This material is subject to the laws of copyright and is restricted to registered licenseholders who have entered into a Corporate, a Multi-User or a Single-User license agreement with SNS Research Ltd. It is an offence for the license-holder to make the material available to any unauthorized person, either via e-mail messaging or by placing it on a network. All SNS research reports & databases are intended to provide general information and strategic insights only, and they do not constitute, nor are they intended to constitute, investment advice. SNS Research and its employees disclaim all and any guarantees, undertakings and warranties, whether expressed or implied, and shall not be liable for any loss or damage whatsoever, and whether foreseeable or not, arising out of, or in connection with, any use of or reliance on any information, statements, opinions, estimates or forecasts contained in the reports.
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
2.2
Why Have Mobile Phone Insurance?
The growing proliferation1 of smartphones, their increasing cost and the resulting reliance2 on smartphones for daily activities has made mobile phone insurance an essential product for consumers and enterprise users worldwide. 6,000 5,000 4,000 3,000 2,000 1,000 0
Western Europe North America Middle East & Africa Latin & Central America Eastern Europe Asia Pacific
Figure 1: Smartphone Installed Base by Region: 2011 - 2020 (Millions) Source: SNS Research The loss of a smartphone, even for a small period of time, can produce a significant level of disruption for the user. For business users in particular, this may even lead to lost revenue. Mobile phone insurance provides users the peace of mind that their phones will be immediately replaced or repaired if they are ever lost, damaged, stolen or if a fault develops.
1
SNS Research estimates that the installed base for smartphones will reach nearly 5 Billion globally by the end of 2020, following a CAGR of 12% between 2015 and 2020. 2 Today, smartphones have become the de-facto device for almost all our communication needs, from basic voice communications to entertainment to internet connectivity or navigation.
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3
Chapter 3: Value Chain & Future Roadmap
In this chapter we review the industry roadmap and value chain for mobile phone insurance.
3.1
Value Chain
The mobile phone insurance value chain is complex with many significant players across different segments of the market, including wireless carriers, device OEMs, banks, retailers, insurance administrators and underwriters. Wireless Carriers
Underwriters
Insurance Administrators
Mobile Device OEMs
Consumers Banks Retailers
Figure 2: Mobile Phone Insurance Value Chain Source: SNS Research 3.1.1
Wireless Carriers
As providers of connectivity, wireless carriers hold a strategically important position in the mobile phone insurance value chain. Partnering with insurance
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
5.5
Asurion
Asurion is a privately held company which provides device replacement insurance sold through retailers and wireless carriers. The company is headquartered in Nashville, Tennessee. As of Q4’2014, the company serves over 280 Million customers worldwide. Asurion’s mobile phone insurance service covers a multitude of risks including water damage, accidental damage, loss, theft and malfunction. The service typically includes next-day replacement of the phone. Besides insurance, the company also offers additional features, such as remote tracking, lock wipes and backup restore capabilities for contacts, photos, videos and other data. As the “white label” insurance service provider for major U.S. wireless carriers such as AT&T and Verizon Wireless, Asurion is widely recognized as the most dominant player in North American mobile phone insurance market. The company has also successfully expanded its operations to international markets such as Japan, where it exclusively manages NTT DoCoMo’s insurance programs. In addition to mobile phone offerings, Asurion also provides cover and technical support services for other products, including consumer electronics, smart home appliances, lawn equipment and jewelry.
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The Mobile Phone Insurance Ecosystem: 2015 – 2020 Opportunities, Challenges, Strategies & Forecasts
6
Chapter 6: Market Analysis & Forecasts
This chapter presents quantitative market analysis and forecasts for the mobile phone insurance ecosystem, at both global and regional levels.
6.1
Global Mobile Phone Insurance Revenue: 2015 - 2020
SNS Research estimates that the global mobile phone insurance market is expected for account for nearly $31 Billion in revenue by the end of 2015. Driven by the growing awareness7 of the benefits of insurance worldwide, the market is further expected to grow at a CAGR of nearly 10% over the next five years, eventually accounting for over $48 Billion in revenue by the end of 2020. $50,000 $40,000 $30,000 $20,000 $10,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Figure 5: Global Mobile Phone Insurance Revenue: 2011 - 2020 ($ Million) Source: SNS Research 7
Besides the growing awareness among users, wireless carriers and insurance providers have extensively enhanced their insurance offerings with the addition of data protection/recovery and integrated technical support.
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