1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Mobile Phone Insurance and Extended Warranties in Europe

Mobile Phone Insurance and Extended Warranties in Europe is a report about the market for insurance and extended warranties sold in conjunction with mobile phones in 20 countries namely Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the UK. Mobile phones are defined as any mobile handsets that incorporate a conventional mobile telephony facility including smartphones. Mobile phone insurance and extended warranties can cover one or more of accidental damage, loss, technical breakdown and theft, as well as airtime abuse. This last provision covers any fraudulent use of a lost or stolen device. Furthermore, increasingly, it is also the case that mobile phone cover is being configured to cover other risks such as viral attacks plus fraudulent use of e-wallets and accessory items.

The report draws on extensive primary and secondary research covering close to 750 organisations involved in the production and distribution of mobile phones including manufacturers, mobile network operators, specialised retailers of consumer electronics, supermarkets and other types of retailer (e.g. department store / variety retailers).

The PartnerBASE™ dataset that accompanies the report logs each of well over 300 schemes for manufacturer, mobile network operator or retailer extended warranties or insurance, showing both the operating model used and partners employed for programs that are not managed internally.

You may be able to use this report plus the PartnerBASE™ dataset and market data annexe that accompany it in one or more of the following ways:

- appreciate the size of the opportunity in the market for mobile phone insurance and extended warranties in Europe: in aggregate, this is a substantial market;

- understand how fast-moving competitors are thriving in a number of countries in spite of the fact that the dynamics of this market have changed substantially in recent years;

- assess the position of national and international competitors such as AIG, Allianz, AmTrust, Assurant, Asurion, AXA, BNP Paribas Cardif, Chubb, Simplesurance, SPB, SquareTrade and The Warranty Group;

- consider how the value of the market for mobile phone insurance and extended warranties in Europe region may be expected to evolve up to 2019.

Table Of Contents

Mobile Phone Insurance and Extended Warranties in Europe
0.0 EXECUTIVE SUMMARY . 1
1.0 INTRODUCTION 3
What is this report about? 3
Rationale . 3
Evolving distribution channels both favour and compromise the distribution of mobile phone cover 3
Methodology . 3
Manufacturer, mobile network operator and retailer survey . 3
The survey's scope covers the vast majority of significant manufacturers and retailers of mobile phones . 3
Distribution channels for retailers . 4
Market data . 4
Exchange rates . 6
Definitions . 6
Mobile phone insurance and extended warranties . 6
Extended warranties and insurance linked to consumer products come in a variety of formats… 6
…and are frequently marketed to consumers under alternative titles . 6
Premiums and other revenues . 7
Operating models . 7
Weighted shares . 7
PartnerBASE and market data annexe 8
Finaccord 8
2.0 REGIONAL OVERVIEW 10
Introduction . 10
Underlying market volumes . 11
Across the ten countries, mobile phone subscriptions reached 3 billion by the end of 2015… 11
… with China and India far ahead of the other eight countries in scope . 11
Mobile phone subscriptions per capita are highest in Hong Kong and lowest in India . 12
Over 70% of the combined population of the ten countries owns at least one handset . 13
Provision of insurance and extended warranties by manufacturers and retailers 18
A rising number of schemes for mobile phone cover can be seen across the ten countries… 18
… meaning that over 20% of organisations researched are involved in this arena… 18
… with the participation rate highest among mobile network operators… 20
… followed by retailers of consumer electronics and department stores 20
Manufacturer schemes for insurance and extended warranties . 22
Manufacturer schemes exist in seven of the ten countries in scope… . 22
… with Apple, Acer, Lenovo and Samsung offering cover in multiple countries . 22
Apple is dominant in the weighted analysis of partnerships. 25
Retailer schemes for insurance and extended warranties . 27
Retailer (and mobile network operator) schemes are most prevalent in Australia and Japan… . 27
… and are least widespread in Indonesia 27
Rakuten, Asurion, SoftBank and IAG emerge as leaders in the weighted analysis of retailer partnerships… 30
Analysis for manufacturer and retailer schemes combined . 32
… but the combined weighted analysis produces a very different result 32
Risk coverage of all schemes for insurance and extended warranties . 34
Many programs in the Asia-Pacific region are limited to extended warranty cover only . 34
Policies in South Korea offer the most wide-ranging cover while those in China are the least comprehensive 35
Independent distribution channels 36
Independent providers exist in Australia, China, India, Hong Kong, Malaysia and Singapore . 36
Market value for extended warranties and insurance 37
Attachment rates are likely to have risen in all countries between 2011 and 2015… . 37
…as smartphones and post-paid contracts have gained in popularity… 37
… thereby triggering a significant increase in the value of the mobile phone insurance market 39
Over 80% of the total market value in the region is accounted for by three countries. . 40
… with the same three countries claiming a higher proportion of the total volume of policies in force 41
Market forecasts to 2019 . 45
The total number of mobile phone subscriptions is predicted to exceed 3.6 billion by 2019… 45
… with the proportion of the total population owning at least one mobile phone rising once again . 48
Insurance take-up rates are expected to increase in all ten countries up to 2019… 52
… which could cause the insurance market value to increase by around USD 1 billion… 54
… with a few changes visible in the composition of this market when segmented by country. 55
By number of stand-alone policies in force, China and India are likely to dominate by 2019 . 56
Key data tables . 59
3.0 AUSTRALIA 62
Introduction . 62
Underlying market volumes . 63
Mobile subscriptions per capita tended to level off between 2011 and 2015… 63
. with over 20 million individuals now owning at least one mobile phone 64
Manufacturers' original warranty length and consumer law. 65
Mobile phone manufacturers offer original warranties lasting either one or two years… . 65
Manufacturer schemes for extended warranties and insurance . 66
… but only one promotes extended cover… 66
Retailer schemes for extended warranties and insurance . 67
Mobile phone cover is quite commonly offered by mobile network operators and retailers… . 67
… with seven external providers visible in this context… 67
.including the duo of Risk Insure and Hollard with multiple partnerships . 68
Combined analysis for manufacturer and retailer schemes 70
Providers with mobile network operator deals continue to dominate the combined, weighted analysis 70
Risk coverage of all schemes for extended warranties and insurance . 71
A significant minority of mobile phone policies incorporate relatively comprehensive cover 71
Independent distribution channels 72
Independent providers include IC Frith (Brightside), Protecsure (Covertec) and Risk Insure (Phone Insure). 72
Market value for extended warranties and insurance 72
Market forecasts to 2019 . 74
Mobile phone subscriptions will continue to edge up between 2015 and 2019… 74
. albeit the market is now close to saturation point . 75
A further quite healthy rise in the value of mobile phone cover seems probable by 2019 76
4.0 CHINA 77
Introduction . 77
Underlying market volumes . 78
Mobile phone subscriptions per capita in China fell just short of 1.00 at the end of 2015… 78
. with almost 1 billion individuals now believed to own at least one mobile handset . 79
Manufacturers' original warranty length and consumer law. 80
Only two mobile phone manufacturers offer an original warranty of longer than one year… . 80
Manufacturer schemes for extended warranties and insurance . 81
… and few have introduced any form of insurance or extended warranty cover 81
Retailer schemes for extended warranties and insurance . 83
Just over 30% of Chinese mobile phone retailers offer handset insurance or extended warranty cover… 83
. with Asurion and The Warranty Group significant external partners in this context… 83
… but it is not yet available from any mobile network operators 84
Combined analysis for manufacturer and retailer schemes 86
Asurion is likely to be the dominant external partner in this market by a comfortable margin 86
Risk coverage of all schemes for extended warranties and insurance . 87
No manufacturer or retailer policies yet provide coverage for loss, theft or airtime abuse . 87
Independent distribution channels 87
There are at least seven independent sources of mobile phone cover in China 87
Market value for extended warranties and insurance 88
Market forecasts to 2019 . 89
Mobile phone subscriptions per capita are predicted to reach 1.15 by 2019. . 89
.which would equate to a mobile handset penetration rate of around 84% of the total population 90
A further surge in value is also predicted for the mobile phone insurance and extended warranty market . 91
5.0 HONG KONG 92
Introduction . 92
Underlying market volumes . 93
Mobile subscriptions per capita are comparatively high in Hong Kong… . 93
. with over 6 million individuals believed to own at least one mobile handset in 2015 94
Manufacturers' original warranty length and consumer law. 95
No mobile phone manufacturers offer an original warranty of longer than one year… 95
Manufacturer schemes for extended warranties and insurance . 96
… and Apple is the only manufacturer to have introduced any kind of extended protection 96
Retailer schemes for extended warranties and insurance . 97
There are only three schemes for mobile phone protection in Hong Kong… . 97
… which results in a very concentrated supply structure… . 98
Combined analysis for manufacturer and retailer schemes 100
… even in the combined analysis . 100
Risk coverage of all schemes for extended warranties and insurance . 101
Mobile phone policies in Hong Kong are limited to cover for technical failure and / or accidental damage . 101
Independent distribution channels 102
Market value for extended warranties and insurance 102
Market forecasts to 2019 . 104
Mobile phone subscriptions per capita in Hong Kong are expected to exceed 2.4 by 2019… 104
.causing the number of individuals with a mobile handset to also increase further… . 105
… which should help to propel further development of the market for mobile phone insurance 106
6.0 INDIA . 107
Introduction . 107
Underlying market volumes . 108
Mobile subscriptions in India increased by more than 15% between 2011 and 2015… 108
. with over 900 million individuals now owning at least one mobile phone 109
Manufacturers' original warranty length and consumer law. 110
All mobile phone manufacturers only offer original warranties lasting a single year… . 110
Manufacturer schemes for extended warranties and insurance . 111
… and six have established extended warranty or insurance programs . 111
OnePlus began offering cover in October 2015 through a partnership with B2X . 111
Retailer schemes for extended warranties and insurance . 113
Mobile phone cover is available from a number of retailers but not yet from any mobile network operators 113
Tata AIG benefits from its partnerships in this sphere with Croma and Hypercity. . 114
.while Infinity Assurance Solutions works with Infibeam and Bag It Today… . 114
… and AmTrust's TecProtec is seeking to roll out a broad array of services in the Indian market 114
Combined analysis for manufacturer and retailer schemes 116
Apple and OneAssist are ranked first and second respectively in the combined analysis . 116
Risk coverage of all schemes for extended warranties and insurance . 117
No policies cover all risks but some offer protection for four of the main ones . 117
Independent distribution channels 118
There are plenty of ways for Indian mobile phone owners to buy cover from independent providers . 118
Market value for extended warranties and insurance 118
Market forecasts to 2019 . 120
Penetration of mobile phone subscriptions is expected to have advanced further by 2019… . 120
. with over 80% of the population likely to own a mobile handset by that time… 121
… and with a further surge in value predicted for the mobile phone insurance sector . 122
7.0 INDONESIA . 123
Introduction . 123
Underlying market volumes . 124
By the end of 2015, there were nearly 325 million mobile subscriptions in Indonesia… 124
. with almost 200 million individuals believed to own at least one mobile handset in the same year . 125
Manufacturers' original warranty length and consumer law. 126
All mobile phone manufacturers in Indonesia offer an original warranty lasting just one year… . 126
Manufacturer schemes for extended warranties and insurance . 127
… but none whatsoever have introduced any kind of extended protection. 127
Retailer schemes for extended warranties and insurance . 127
. and only two retailers have done so 127
By weighted share of partnerships, AmTrust (the owner of TecProtect) is the most prominent provider 128
Combined analysis for manufacturer and retailer schemes 130
Risk coverage of all schemes for extended warranties and insurance . 130
The two schemes identified offer comparatively wide cover 130
Independent distribution channels 131
Market value for extended warranties and insurance 131
Market forecasts to 2019 . 133
By 2019, mobile phone subscriptions are likely to rise by more than 40 million… . 133
. which will also drive up the number of individuals with a mobile handset . 134
The future of the mobile phone insurance market is largely dependent on the launch of new schemes 135
8.0 JAPAN . 136
Introduction . 136
Underlying market volumes . 137
The number of mobile subscriptions rose by over 20 million between 2011 and 2015… 137
. with 85% of the population believed to own at least one mobile handset in the latter year 138
Manufacturers' original warranty length and consumer law. 139
All mobile phone manufacturers offer an original warranty of just one year in Japan… . 139
Manufacturer schemes for extended warranties and insurance . 140
… and two have introduced schemes for mobile phone cover 140
Retailer schemes for extended warranties and insurance . 142
Mobile phone insurance programs have been set up by four Japanese mobile network operators… 142
. with Asurion having worked in this sphere with NTT DOCOMO for a decade… 143
. making it the clear leader by weighted share of partnerships… 143
Combined analysis for manufacturer and retailer schemes 145
… for both retailers alone and retailers combined with manufacturers . 145
Risk coverage of all schemes for extended warranties and insurance . 146
Mobile phone insurance policies quite commonly include cover for accidental damage, theft and loss 146
Independent distribution channels 147
Market value for extended warranties and insurance 147
Market forecasts to 2019 . 149
Mobile phone subscriptions per capita are expected to have advanced further by 2019… . 149
.causing the number of individuals with a mobile handset to reach 87% of the population. . 150
… which will lead to further growth of the market for mobile phone insurance . 151
9.0 MALAYSIA 152
Introduction . 152
Underlying market volumes . 153
Mobile subscriptions per capita in Malaysia reached 1.46 in 2015… 153
. with 76% of the population believed to own at least one mobile handset in the same year . 154
Manufacturers' original warranty length and consumer law. 155
An original warranty of longer than one year is on offer from one mobile handset manufacturer… 155
Manufacturer schemes for extended warranties and insurance . 156
… but only one (Acer) offers insurance or an extended warranty . 156
Retailer schemes for extended warranties and insurance . 157
A significant proportion of retailers researched in Malaysia promote mobile phone insurance 157
Multi-Purpose Insurans and TecProtec claim the highest unweighted share of partnerships. . 158
. albeit SoftBank (the owner of Brightstar) is most prominent in the weighted analysis… 158
Combined analysis for manufacturer and retailer schemes 160
… and also in the combined analysis covering both manufacturer and retailer programs . 160
Risk coverage of all schemes for extended warranties and insurance . 161
Some mobile phone insurance policies in Malaysia include cover for accidental damage or theft 161
Independent distribution channels 162
Ingram Micro's ‘Cover Plus' proposition represents an independent option for Malaysians 162
Market value for extended warranties and insurance 162
Market forecasts to 2019 . 164
Mobile phone subscriptions are expected to exceed 50 million by 2019… 164
.causing the number of individuals with a mobile handset to also move up further… 165
The value of the market for mobile phone cover is forecast to rise by almost 50% by 2019 166

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
Product Warranty Insurance - Industry Market Research Report

Product Warranty Insurance - Industry Market Research Report

  • $ 1020
  • Industry report
  • December 2016
  • by Ibisworld

Satisfaction guaranteed: Rising incomes will spur big-ticket sales, lifting demand for warranties AbstractProduct Warranty Insurance The Product Warranty Insurance industry underwrites factory warranties ...

Non-Life Insurance in Germany, Key Trends and Opportunities to 2019

Non-Life Insurance in Germany, Key Trends and Opportunities to 2019

  • $ 1450
  • Industry report
  • June 2016
  • by Timetric

Synopsis Timetric’s 'Non-Life Insurance in Germany, Key Trends and Opportunities to 2019' report provides a detailed outlook by product category for the German non-life insurance segment, and a comparison ...

Life Insurance in Germany, Key Trends and Opportunities to 2019

Life Insurance in Germany, Key Trends and Opportunities to 2019

  • $ 1450
  • Industry report
  • June 2016
  • by Timetric

Synopsis Timetric’s 'Life Insurance in Germany, Key Trends and Opportunities to 2019' report provides detailed analysis of the market trends, drivers and challenges in the German life insurance segment. ...


ref:plp2016

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.