Mobile phone insurance tops $70b as telcos tighten grip on sales

Operator channels are projected to control $23.3b of premiums by 2029 through bundled handset plans.

The mobile phone insurance market is projected to surpass $70b through 2029, with Asia-Pacific cited to be the fastest growing market, a The Business Research Company report stated.

The market, accounts for about 2% of the projected $3.3t property and casualty insurance market, according to industry estimates.

Within the wider financial services sector, which is forecast to reach $47.6t by 2029, mobile phone insurance is seen to represent around 0.1% of total market value.

North America is projected to be the largest regional market, with mobile phone insurance premiums reaching about $20.2b in 2029, up from $12.4b in 2024, reflecting a compound annual growth rate of 10%.

By handset type, insurance coverage for premium smartphones is forecast to dominate the market, accounting for about 54% or $37.8b of total premiums in 2029. 

Demand is being driven by the higher replacement costs of high-end devices, wider adoption of advanced features such as foldable screens and AI, and stronger consumer willingness to insure expensive phones. 

In terms of coverage, physical damage protection is expected to be the largest segment, representing around 32% or $22.6b of the market, reflecting the high incidence of screen breaks and accidental drops, as well as growing consumer awareness of device protection plans.

By distribution channel, mobile operators are projected to account for the largest share, with around $23.3b in premiums, or 33% of the market, by 2029. 

Insurers are benefiting from partnerships with telecom firms that bundle insurance with handset sales and subscription plans, giving operators a central role in selling and servicing mobile phone insurance products.