Smartphone sales push mobile insurance biz

With the increase in smartphone penetration across the country, the mobile insurance market is also flourishing, thanks to the number of smartphones sold every year.

According to the International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker, the India smartphone market saw a shipment of 30 million units in the first quarter of 2018 alone.

Insurance experts say that the potential of the mobile insurance in India is equal to the number of mobiles sold in the country. Various smartphone OEMS like Apple, Samsung and Xiaomi have already started offering protection plans, and the market in India is expected to grow faster with more startups and retailers foraying into the mobile insurance space. The cost of the mobile insurance can be as low as Rs 250.

Insurance startup Digit Insurance in association with Paytm started offering mobile insurance from beginning of this year. Jasleen Kohli, Chief Distribution Officer, Digit Insurance, said mobile insurance covers beyond the warranty and under common scenarios like screen damage which cost a lot. “The awareness of mobile insurance is increasing especially among people who are buying their phones on e-tailers,” he added.
People can buy Only screen damage protection or All damages- screen damage plus accidental and liquid damages too or opt for the full offering which also includes, theft, Kohli said.

Bajaj Allianz General Insurance has been providing mobile insurance for the past 5 years now, and in the last financial year, it sold three lakh mobile insurance policies.

“The demand for this cover is increasing with the increase in penetration of cell phones in the country. The mobile insurance cover is quite beneficial for the people as it compensates for the loss incurred due to any accidental means such as theft, screen damage, water damage, etc. The cost of the cover varies depending on the type of cover one opts for. For instance, an all-risk cover will cost more compared to a simple fire and theft cover," Sasikumar Adidamu, Chief Technical Officer, Bajaj Allianz General Insurance said.

The digital-only general insurance company Acko recently started offering mobile insurance cover. Animesh Das, Head of Product Strategy, Acko said, “Mobile insurance is a good product for anyone who is buying a new phone since the incidence of accidental damage to phones is high and the related expenses can leave a big hole in the pockets of the customers. The insurance premium is directly related to the cost of the phone since the cost of phone parts is also a function of the phone price.”

Acko offers mobile insurance product on Amazon platform where customers who buy new phones can buy a mobile insurance along with it.

Smartphone Lava recently introduced a first-of-its-kind insurance scheme on its feature phones, providing an accidental death cover of Rs 1 lakh to its customers. This scheme was started as a pilot project in Uttar Pradesh and now, it has extended it to Bihar and Jharkhand as well.
“We will take this scheme further to other regions in the country soon,” said Deepak Mahajan, Vice President- Product, Lava International.
According to Research and Markets, the largest market research store, the global mobile phone insurance market is expected to grow at a CAGR of approximately 10% over the next three years, eventually accounting for more than $27 billion in revenue by the end of 2020.

In 2018, total APAC mobile phone insurance market size is estimated to be $4.11 billion, growing at a CAGR of 20.73% from 2013. Though the mobile insurance market in the country is still at a nascent stage, insurance companies predict that with growing awareness, in the near future, this will be one of the biggest insurance segments.