Mobile Phone Insurance Market Could Reach $48 Billion by 2020

Radiant Insights, an information technology market research company, has released its latest report about the global phone insurance revenue market, “Mobile Phone Insurance Revenues by Country & Region Database: 2009-2016.”

The report finds that growth in the global spread of smartphone usage, especially high-end models, has propelled its insurance market to new heights. In 2011, it says, the insurance market reached more than $8 billion. By 2020, Radiant predicts, it will surge to $48 billion in revenue and will experience a compound annual growth rate of 10 percent within that nine year period.

How does this proliferation work?

It begins with greater competition between mobile carriers and smartphone manufacturers. More manufacturers are trying to gain customer attention with phone models that outperform, or at least outshine, the rest of the pack. This is how users grab powerful handsets such as the Apple iPhone 6 Plus and Samsung Galaxy S7, respective big players among the iOS and Android operating system brands.

Newcomers such as Huawei and OnePlus are nipping at those established manufacturers’ heels, however, and releasing their own expensive and powerful models. And of course, the four brands listed here only begin to establish the number of competitors in the hardware development game.

Insurance companies have realized that users may not always have the best luck with their devices. Screens crack, operating systems crash, and processors fizzle. Insurance plans can help save the headache of purchasing an entirely new phone because it could help deal with any loss of property from a damaged device.

This is where Radiant’s measures bring the entire picture together. A rise to $48 billion in insurance revenue will not happen overnight. It will build over years as smartphone sales continue to build. Insurance companies may even have plans specifically made for individual devices because they recognize the idiosyncrasies that exist between hardware types. Often, users will be able to find insurance policies through their existing carriers, such as AT&T, Sprint, T-Mobile, or Verizon, the four largest carriers in the U.S.

Customers may also benefit from insurance companies’ support of backup facilities or improved customer service. Carriers that provide their users access to cloud storage or enhanced support may find better deals to offer on behalf of their chosen insurance companies. Hopefully in the end, customers will be able to reap the benefits of these deals and, if nothing else, will gain the peace of mind in knowing that their latest phone drops or operating systems blunders will find sympathy.