Wireless & Mobile Landscape

U.S. Mobile Device Insurance Forecast, 2014-2019: A Market Driven by Smartphone Sales

As an increasing number of U.S. consumers purchase smartphones and tablets, they are becoming dependent on their advanced functionality, such as social networking, web browsing, email and messaging apps. In order to protect their investment and ensure the continued availability of these services, many U.S. consumers are choosing to purchase mobile device insurance.

Most major cellular service providers offer insurance that covers loss, theft, accidental damage, and out of warranty defects. This insurance is offered for an additional monthly fee, typically between $5 and $11 per device per month. Although some operators also offer additional levels of insurance that cover data backup and support, iGR’s study focuses on the insurance for lost, damaged, stolen or defective devices. Furthermore, the forecast only includes insurance sold by mobile operators and does not include insurance sold directly by OEMs, such as Apple Care by Apple.

This market study provides an overview of the mobile device insurance market in the U.S., and U.S. consumers’ adoption of insurance policies sold by their mobile service providers. The study includes emerging trends regarding the likelihood to purchase insurance according to many demographic variables. The consumer data in this report is based on a Web-based survey of over 1,100 U.S. consumers that iGR fielded during January 2015. The market study also includes a five-year forecast of the number of mobile devices (non-smartphones, smartphones, and tablets) sold with insurance and the total revenues of the mobile device insurance market.


Key Questions Answered

  • What is the forecasted size of the mobile device insurance market from now until 2019?
  • What is the average price of device insurance provided by mobile operators and what is included in different operators’ protection plans?
  • What percentage of subscribers have recently purchased damage, theft and loss insurance through their mobile operators and how do these percentages differ according to the respondents’ demographic variables, types of mobile device, mobile service providers and typical device usage?
  • What percentage of subscribers plan to purchase damage, theft and loss insurance through their mobile operators and how do these percentages differ according to the respondents’ demographic variables, types of mobile device, mobile service providers and typical device usage?
  • How many subscribers have returned a damaged device?
  • Who did subscribers contact when they had an issue with their device?
  • How many subscribers have lost (including through theft) a mobile device?

Who Should Read

  • Insurance companies offering mobile device insurance services
  • Mobile operators
  • Mobile device distributors
  • Device OEMs
  • Financial analysts and investors.

Table of Contents

  • Abstract
  • Executive Summary
    • U.S. Consumers’ Purchase of Mobile Device Insurance
    • Mobile Device Insurance Forecast
  • Methodology
  • Mobile Device Insurance
    • Overview of Mobile Operators’ Programs
    • Price of Insurance
  • U.S. Consumers’ Past Purchase of Mobile Device Insurance
    • By Gender
    • By Age
    • By Ethnic Background
    • By Marital Status
    • By Size of Household
    • By Children in Household
    • By Employment Status
    • By Income
    • By Completed Education
    • By Geographical Area
    • By Primary Use of Mobile Phone
    • By Type of Mobile Phone
    • By Brand of Mobile Phone
    • By Smartphone Operating System
    • By Mobile Operator
  • U.S. Consumers’ Plans to Purchase Mobile Insurance
    • By Current Insurance
    • By Gender
    • By Age
    • By Ethnic Background
    • By Marital Status
    • By Children in Household
    • By Employment Status
    • By Income
    • By Completed Education
    • By Geographical Area
    • By Primary Use of Mobile Phone
    • By Type of Mobile Phone
    • By Brand of Mobile Phone
    • By Smartphone Operating System
    • By Mobile Operator
  • U.S. Consumers’ Handset Issues
    • Frequency of Damaged or Defective Handset Issues
    • Frequency of Lost or Stolen Handset Issues
    • Resolution of Handset Issues
  • U.S. Mobile Device Insurance Forecast, 2014 – 2019
    • Mobile Device and Insurance Sales
    • Connected and Insured Mobile Devices
    • Mobile Device Insurance Revenues
  • Consumer Demographics
    • Demographic Profile of U.S. Consumer Respondents
  • Definitions
    • General
    • Device Types
    • Services
    • Network Technology
  • About iGR
    • Disclaimer

List of Tables

  • Table 1: Mobile Operators’ Monthly Price for insurance
  • Table 2: Percent of Latest Handset Purchases with Insurance
  • Table 3: Mobile Insurance Purchase by Gender (indexed)
  • Table 4: Mobile Insurance Purchase by Age (indexed)
  • Table 5: Mobile Insurance Purchase by Ethnic Background (indexed)
  • Table 6: Mobile Insurance Purchase by Marital Status (indexed)
  • Table 7: Mobile Insurance Purchase by Size of Household (indexed)
  • Table 8: Mobile Insurance Purchase by Children in Household (indexed)
  • Table 9: Mobile Insurance Purchase by Employment Status (indexed)
  • Table 10: Mobile Insurance Purchase by Income (indexed)
  • Table 11: Mobile Insurance Purchase by Completed Education (indexed)
  • Table 12: Mobile Insurance Purchase by Type of Area (indexed)
  • Table 13: Mobile Insurance Purchase by Primary Use (indexed)
  • Table 14: Mobile Insurance Purchase by Type of Mobile Phone (indexed)
  • Table 15: Mobile Insurance Purchase by Brand of Mobile Phone (indexed)
  • Table 16: Mobile Insurance Purchase by Mobile OS (indexed)
  • Table 17: Mobile Insurance Purchase by Mobile Operator (indexed)
  • Table 18: Plans to Purchase Insurance on Next Mobile Phone
  • Table 19: Current Insurance versus Likelihood to Purchase Insurance on Next Mobile Phone
  • Table 20: Planned Mobile Insurance Purchase by Current Insurance (indexed)
  • Table 21: Planned Mobile Insurance Purchase by Gender (indexed)
  • Table 22: Planned Mobile Insurance Purchase by Age (indexed)
  • Table 23: Planned Mobile Insurance Purchase by Ethnic Background (indexed)
  • Table 24: Planned Mobile Insurance Purchase by Marital Status (indexed)
  • Table 25: Planned Mobile Insurance Purchase by Children in Household (indexed)
  • Table 26: Planned Mobile Insurance Purchase by Employment Status (indexed)
  • Table 27: Planned Mobile Insurance Purchase by Income (indexed)
  • Table 28: Planned Mobile Insurance Purchase by Completed Education (indexed)
  • Table 29: Planned Mobile Insurance Purchase by Geographical Area (indexed)
  • Table 30: Planned Mobile Insurance Purchase by Primary Use (indexed)
  • Table 31: Planned Mobile Insurance Purchase by Type of Mobile Phone (indexed)
  • Table 32: Planned Mobile Insurance Purchase by Brand of Mobile Phone (indexed)
  • Table 33: Planned Mobile Insurance Purchase by Type of Mobile OS (indexed)
  • Table 34: Planned Mobile Insurance Purchase by Mobile Operator (indexed)
  • Table 35: Number of Damaged or Defective Device Issues
  • Table 36: No Damaged or Defective Device by Current Insurance (indexed)
  • Table 37: No Damaged or Defective Device by Likelihood to Purchase Insurance (indexed)
  • Table 38: No Damaged or Defective Device by Gender (indexed)
  • Table 39: No Damaged or Defective Device by Age (indexed)
  • Table 40: No Damaged or Defective Device by Ethnic Background (indexed)
  • Table 41: No Damaged or Defective Device by Marital Status (indexed)
  • Table 42: No Damaged or Defective Device by Children in Household (indexed)
  • Table 43: No Damaged or Defective Device by Employment Status (indexed)
  • Table 44: No Damaged or Defective Device by Income (indexed)
  • Table 45: No Damaged or Defective Device by Geographical Area (indexed)
  • Table 46: No Damaged or Defective Device by Primary Use (indexed)
  • Table 47: No Damaged or Defective Device by Type of Mobile Phone (indexed)
  • Table 48: No Damaged or Defective Device by Brand of Mobile Phone (indexed)
  • Table 49: No Damaged or Defective Device by Type of Mobile OS (indexed)
  • Table 50: No Damaged or Defective Device by Mobile Operator (indexed)
  • Table 51: Number of Lost or Stolen Device Issues
  • Table 52: No Lost or Stolen Device by Current Insurance (indexed)
  • Table 53: No Lost or Stolen Device by Likelihood to Purchase Insurance (indexed)
  • Table 54: No Lost or Stolen Device by Gender (indexed)
  • Table 55: No Lost or Stolen Device by Age (indexed)
  • Table 56: No Lost or Stolen Device by Ethnic Background (indexed)
  • Table 57: No Lost or Stolen Device by Marital Status (indexed)
  • Table 58: No Lost or Stolen Device by Children in Household (indexed)
  • Table 59: No Lost or Stolen Device by Employment Status (indexed)
  • Table 60: No Lost or Stolen Device by Geographical Area (indexed)
  • Table 61: No Lost or Stolen Device by Primary Use (indexed)
  • Table 62: No Lost or Stolen Device by Type of Mobile Phone (indexed)
  • Table 63: No Lost or Stolen by Brand of Mobile Phone (indexed)
  • Table 64: No Lost or Stolen Device by Type of Mobile OS (indexed)
  • Table 65: No Lost or Stolen Device by Mobile Operator (indexed)
  • Table 66: Resolutions of Damaged or Defective Device Issues
  • Table 67: Resolutions of Lost or Stolen Device Issues
  • Table 68: U.S. Mobile Device Sales, 2014-2019
  • Table 69: Percent of Mobile Devices sold with insurance through Mobile Operator channels, 2014-2019
  • Table 70: Number of Mobile Devices sold with insurance through Mobile Operator channels, 2014-2019
  • Table 71: U.S. Connected and Insured Mobile Devices from Mobile Operator Channels in the Installed Base, 2014-2019
  • Table 72: U.S. Mobile Device Insurance Revenues from Mobile Operator Channels by type of device, 2014-2019
  • Table 73: Respondent Age
  • Table 74: Respondent Gender
  • Table 75: Respondent Ethnic Background
  • Table 76: Respondent Annual Household Income
  • Table 77: Respondent Level of Education
  • Table 78: Age of Children in Household
  • Table 79: Respondent Region
  • Table 80: Respondent Marital Status

List of Charts

  • Figure A: Percent of Latest Handset Purchases with Insurance
  • Figure B: Percent of Mobile Devices sold with insurance, 2014-2019
  • Figure C: U.S. Insured Mobile Devices in the Installed Base, 2014-2019
  • Figure D: U.S. Mobile Device Insurance Revenues from Mobile Operator Channels by type of device, 2014-2019 ($M)
  • Figure 1: Mobile Operators’ Monthly Price for insurance
  • Figure 2: Percent of Latest Handset Purchases with Insurance
  • Figure 3: Mobile Insurance Purchase by Gender (indexed)
  • Figure 4: Mobile Insurance Purchase by Age (indexed)
  • Figure 5: Mobile Insurance Purchase by Ethnic Background (indexed)
  • Figure 6: Mobile Insurance Purchase by Marital Status (indexed)
  • Figure 7: Mobile Insurance Purchase by Size of Household (indexed)
  • Figure 8: Mobile Insurance Purchase by Children in Household (indexed)
  • Figure 9: Mobile Insurance Purchase by Employment Status (indexed)
  • Figure 10: Mobile Insurance Purchase by Income (indexed)
  • Figure 11: Mobile Insurance Purchase by Completed Education (indexed)
  • Figure 12: Mobile Insurance Purchase by Type of Area (indexed)
  • Figure 13: Mobile Insurance Purchase by Primary Use (indexed)
  • Figure 14: Mobile Insurance Purchase by Type of Mobile Phone (indexed)
  • Figure 15: Mobile Insurance Purchase by Brand of Mobile Phone (indexed)
  • Figure 16: Mobile Insurance Purchase by Mobile OS (indexed)
  • Figure 17: Mobile Insurance Purchase by Mobile Operator (indexed)
  • Figure 18: Plans to Purchase Insurance on Next Mobile Phone
  • Figure 19: Current Insurance versus Likelihood to Purchase Insurance on Next Mobile Phone
  • Figure 20: Planned Mobile Insurance Purchase by Current Insurance (indexed)
  • Figure 21: Planned Mobile Insurance Purchase by Gender (indexed)
  • Figure 22: Planned Mobile Insurance Purchase by Age (indexed)
  • Figure 23: Planned Mobile Insurance Purchase by Ethnic Background (indexed)
  • Figure 24: Planned Mobile Insurance Purchase by Marital Status (indexed)
  • Figure 25: Planned Mobile Insurance Purchase by Children in Household (indexed)
  • Figure 26: Planned Mobile Insurance Purchase by Employment Status (indexed)
  • Figure 27: Planned Mobile Insurance Purchase by Income (indexed)
  • Figure 28: Planned Mobile Insurance Purchase by Completed Education (indexed)
  • Figure 29: Planned Mobile Insurance Purchase by Geographical Area (indexed)
  • Figure 30: Planned Mobile Insurance Purchase by Primary Use (indexed)
  • Figure 31: Planned Mobile Insurance Purchase by Type of Mobile Phone (indexed)
  • Figure 32: Planned Mobile Insurance Purchase by Brand of Mobile Phone (indexed)
  • Figure 33: Planned Mobile Insurance Purchase by Type of Mobile OS (indexed)
  • Figure 34: Planned Mobile Insurance Purchase by Mobile Operator (indexed)
  • Figure 35: Number of Damaged or Defective Device Issues
  • Figure 36: No Damaged or Defective Device by Current Insurance (indexed)
  • Figure 37: No Damaged or Defective Device by Likelihood to Purchase Insurance (indexed)
  • Figure 38: No Damaged or Defective Device by Gender (indexed)
  • Figure 39: No Damaged or Defective Device by Age (indexed)
  • Figure 40: No Damaged or Defective Device by Ethnic Background (indexed)
  • Figure 41: No Damaged or Defective Device by Marital Status (indexed)
  • Figure 42: No Damaged or Defective Device by Children in Household (indexed)
  • Figure 43: No Damaged or Defective Device by Employment Status (indexed)
  • Figure 44: No Damaged or Defective Device by Income (indexed)
  • Figure 45: No Damaged or Defective Device by Geographical Area (indexed)
  • Figure 46: No Damaged or Defective Device by Primary Use (indexed)
  • Figure 47: No Damaged or Defective Device by Type of Mobile Phone (indexed)
  • Figure 48: No Damaged or Defective Device by Brand of Mobile Phone (indexed)
  • Figure 49: No Damaged or Defective Device by Type of Mobile OS (indexed)
  • Figure 50: No Damaged or Defective Device by Mobile Operator (indexed)
  • Figure 51: Number of Lost or Stolen Device Issues
  • Figure 52: No Lost or Stolen Device by Current Insurance (indexed)
  • Figure 53: No Lost or Stolen Device by Likelihood to Purchase Insurance (indexed)
  • Figure 54: No Lost or Stolen Device by Gender (indexed)
  • Figure 55: No Lost or Stolen Device by Age (indexed)
  • Figure 56: No Lost or Stolen Device by Ethnic Background (indexed)
  • Figure 57: No Lost or Stolen Device by Marital Status (indexed)
  • Figure 58: No Lost or Stolen Device by Children in Household (indexed)
  • Figure 59: No Lost or Stolen Device by Employment Status (indexed)
  • Figure 60: No Lost or Stolen Device by Geographical Area (indexed)
  • Figure 61: No Lost or Stolen Device by Primary Use (indexed)
  • Figure 62: No Lost or Stolen Device by Type of Mobile Phone (indexed)
  • Figure 63: No Lost or Stolen by Brand of Mobile Phone (indexed)
  • Figure 64: No Lost or Stolen Device by Type of Mobile OS (indexed)
  • Figure 65: No Lost or Stolen Device by Mobile Operator (indexed)
  • Figure 66: Resolutions of Damaged or Defective Device Issues
  • Figure 67: Resolutions of Lost or Stolen Device Issues
  • Figure 68: U.S. Mobile Device Sales, 2014-2019
  • Figure 69: Percent of Mobile Devices sold with insurance through Mobile Operator channels, 2014-2019
  • Figure 70: Number of Mobile Devices sold with insurance through Mobile Operator channels, 2014-2019
  • Figure 71: U.S. Connected and Insured Mobile Devices from Mobile Operator Channels in the Installed Base, 2014-2019
  • Figure 72: U.S. Mobile Device Insurance Revenues from Mobile Operator Channels by type of device, 2014-2019 ($M)
  • Figure 73: Total U.S. Mobile Device Insurance Revenues from Mobile Operator Channels, 2014-2019 ($M)
  • Figure 74: Respondent Age
  • Figure 75: Respondent Gender
  • Figure 76: Respondent Ethnic Background
  • Figure 77: Respondent Annual Household Income
  • Figure 78: Respondent Level of Education
  • Figure 79: Age of Children in Household
  • Figure 80: Respondent Region
  • Figure 81: Respondent Marital Status

For additional information on the U.S. Mobile Device Insurance Forecast, 2014-2019:A Market Driven by Smartphone Sales market study, please contact Iain Gillott at (512) 263-5682 or by email.