Middle East & Africa Mobile Phone Insurance Market Outlook, 2029

In the MEA region, the mobile phone insurance market has changed dramatically over the past couple of years. The trend towards purchasing insurance cover for risks associated with mobile devices has been on the rise. With rapid expansion in the use of mobile technology and a sharp fall in the prices of smartphones, which is coupled with a rise in the need for insurance coverage, growth has become apparent. In the early days, very few insurance policies existed for mobile phones in the MEA region. They were mostly offered by the telecom companies at the time of buying the devices.

With the maturing market and raise in awareness, stand-alone products started to come into the picture, mostly offered by traditional insurance companies and specialist mobile phone insurance providers. The evolution was propelled center stage by a variety of different forces, not least the high incidence of both mobile phone theft and damage in urban areas throughout the MEA region. For instance, in countries such as the UAE and Saudi Arabia, the high smartphone penetration rate, coupled with the relatively high rate of crime, has created an effective demand for insurance coverage against financial losses from device theft or damage.

The socio-economic landscape of the MEA region, wherein a large chunk of its population depends so greatly on mobile devices for communication, banking, and access to different services, only resonates further with the importance of mobile phone insurance. For instance, countries like Egypt and Morocco basically use mobile phones as the primary way of accessing the internet insurance coverage is therefore of very important value in protection against unexpected loss or damage.

Insurance providers within the MEA region have risen to the challenge of innovating insurance products to accommodate the needs of the local consumer and adequate coverage at an affordable premium rate. For example, some policies in the UAE provide accidental damage, theft, and los special additional benefits include data protection and international coverage. Furthermore, the involvement of technology in the form of IoT and mobile applications for claim processing and improving customer service has brought efficiency lately to mobile phone insurance offers in the region of MEA.

According to the report, the Middle-East & Africa Mobile Phone Insurance market is expected to reach a market size of more than USD 4 Billion by 2029. Developments in the MEA mobile phone insurance market include the adoption of digital solutions and technological innovation to better customer experience and operational efficiency. Mobile applications, AI-driven chatbots, and big data analytics are some of the ways through which insurers seek to make policy management easier, accelerate the claims procedure, and provide customized insurance products in line with individual consumer behavior and patterns of use. For example, AXA Gulf has developed mobile applications that allow clients to manage their policies and make claims with great ease.

It has thus enhanced access and achieved customer satisfaction by way of real-time updates. In line with the expansion of the market reach through strategic partnerships and distribution channels, the strategies adopted in the MEA market are insurers with other big players, or a mark in people's lives, like telecom operators, retailers, and financial institutions, where they could bundle up insurance packages together with point-of-sale options for greater insurance coverage among a wider consumer base. Such strategic partnerships can increase insurance product visibility and answer the different needs and preferences of consumers across demographics and income levels.

Innovations in the product offerings aresome of the major drivers of growth in the MEA mobile phone insurance sector. Innovative insurers introduced flexible coverage plans that include extensive benefits, from device repair services to extended warranty protection and even digital security features aiming at protection against cyber threats. This is quite important in attracting tech-savvy consumers who value comprehensive protection and value-added services going along with their smartphones. The growth in MEA is supported by a number of benign regulatory environments and government initiatives aimed at promoting financial inclusion and consumer protection. For example, there exist regulators in countries like UAE and Saudi Arabia to ensure that insurance practices adhere to standards of transparency and fair dealings with customers so as to give central trust and confidence in insurance products.

Market Drivers

• Growing Middle-Class Population: The expanding middle-class population in many MEA countries is a significant driver for the mobile phone insurance market. As more people in this demographic purchase high-end smartphones, the need to protect these valuable devices from damage, theft, and loss increases. The growing disposable income among the middle class enables them to invest in insurance products that safeguard their investments.
• High Smartphone Usage: High levels of smartphone usage, particularly in urban areas of the MEA region, boost the demand for mobile phone insurance. Consumers rely heavily on their smartphones for various activities, including communication, business transactions, and entertainment. This dependence on mobile devices makes the prospect of losing or damaging a smartphone particularly concerning, driving the demand for insurance coverage.

Market Challenges

• Low Awareness Levels: Limited consumer awareness about the benefits of mobile phone insurance in many MEA countries restricts market growth. Many consumers are not fully informed about the advantages of insuring their devices, which can lead to low adoption rates. Insurers need to invest in educational campaigns to raise awareness and highlight the value of mobile phone insurance. By leveraging various communication channels, such as social media, community events, and partnerships with local influencers, insurers can effectively reach potential customers and educate them on the benefits of coverage, thereby driving higher adoption rates.
• Infrastructure Limitations: Inadequate infrastructure for insurance services, particularly in remote and rural areas of the MEA region, poses significant challenges. Limited access to insurance products and services means that many consumers are unable to purchase or benefit from mobile phone insurance. To address this issue, insurers need to develop innovative distribution strategies that leverage mobile technology and local networks.

Market Trends

• Mobile-First Insurance Solutions:The rise of mobile-first insurance solutions designed to be easily accessible via smartphones is a growing trend in the MEA region. These solutions cater to the tech-savvy population, offering convenience, flexibility, and ease of use. Companies like BIMA provide mobile-based microinsurance products tailored to the needs of emerging markets. Mobile-first solutions allow consumers to purchase and manage insurance policies directly from their smartphones, simplifying the process and increasing accessibility.
• Focus on Education and Awareness: Insurers in the MEA region are increasingly focusing on educational campaigns and awareness programs to inform consumers about the advantages of mobile phone insurance. These efforts aim to boost market penetration by increasing understanding and trust in insurance products. By partnering with local influencers, community leaders, and media outlets, insurers can effectively communicate the benefits and importance of mobile phone insurance.

The leading role of premium smartphones in the mobile phone insurance market in MEA is primarily driven by the rising affluence and increasing value placed on high-end devices, which makes consumers more inclined to insure their expensive investments

With improving economic conditions and an increasing middle class in most MEA countries, the consumer has more disposable income to spend on high-end smartphones from leading brands like Apple, Samsung, and Huawei. The high-end devices are almost like status symbols and come with a premium price and advanced technology and features that raise their functional value and appeal significantly. It is a huge financial investment, and it will be quite a big deal if they break down or have to be replaced unexpectedly. Because of widespread theft, and they get damaged unintentionally, insurance becomes very important in securing these devices.

Regional consumers are increasingly finding value in assuring their smartphones against risks, largely because these devices are fast becoming central to everyday life, from business communications to digital transactions to social connectivity. The insurance companies give policies that guarantee full protection against all kinds of risks - accidental damage, theft, and software malfunctions - during an acquisition that brings this coverage to an increasingly large number of policyholders.

The growing value that consumers attach to smartphones, coupled with their rising affluence, ensures that mobile phone insurance is considered essential protection. The trend is further underpinned by the levels of digital literacy and smartphone penetration, which continue to grow in the region and drive demand for dependable and accessible insurance solutions. With increasing dependence on them, the mobile phone insurance market will keep branching out in MEA as people sweat to replace high-value devices that have become quite indispensable in today's digitally driven world.

In the region of MEA, physical damages are a serious issue as the climatic conditions in the region are definitely harsh and there are huge chances of mobile phone accidents in certain environments.

The region of MEA has extremely high temperatures, dust storms, and arid climates. All these could be most stressful for an electronic device like a smartphone. Exposure to heat, sand, and other environmental factors mean physical damage, such as a cracked screen or malfunctioning buttons and internal component failures. The cultural and social practices within the MEA region boost this risk of physical damage. For example, in important religious meetings and most traditional celebrations, very large numbers result in crowded areas and, therefore, a higher risk of allowing mobile devices to drop or suffer certain impacts.

A facilitating factor is that outdoor activities and adventure tourism have grown in parts of the MEA region, resulting in the requirement for mobile phone insurance against physical damage. For instance, desert safaris, dune bashing, or visiting ancient ruins all realize the handling of smartphones roughly or occasionally dropping them, hitting them, or exposing them to other harsh elements that result in damage. The very challenges that some insurance providers in the MEA region have realized exist, and they have consequently aligned their products to suit these needs. Most of the plans provide exhaustive coverage against physical damage, such as cracked screens, water damage, and environmental factors like dust or heat. Scenarios for physical damage in the MEA region would include a crack in a screen from extreme temperature swings, impact damage from the device being dropped due to a congested religious ceremony, etc.

The high prevalence of theft and crime in South Africa drives demand for mobile phone insurance, placing it at the top of the list among the countries subscribing to this form of insurance.

According to a report from the South African Insurance Association, theft accounts for the largest proportion of mobile insurance claims in this country. To most South Africans, a smartphone is not only a status symbol but a very important tool for communication, online banking, and other daily transactions. Actually, it's the high price tag that makes the device quite enticing to thieves, and quite a few South Africans have been traumatized by having their phones stolen. This has further increased the demand for mobile phone insurance against the monetary loss and hassle of losing phones to thieves.

The high rate of crime in South Africa has enhanced the growth of highly specialized insurance products because it is able to capture consumers' peculiar risks. For example, some providers would have insurance that covers mobile phone hijacking. Phone hijacking is one of the rampant incidents in South Africa. The type of insurance pays for the replacement of a one's phone if it was forcefully taken away from them. In South Africa, mobile phone insurance covers accidental damage, loss, and other risks. Many insurers add more advantages, like data protection, technical assistance, and international coverage, all of which, in turn, make the insurance taken out on a mobile phone very comprehensive in nature for consumers.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Mobile Phone Insurance market outlook with its value and forecast, along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Phone Type:

• Premium smartphones
• Mid & high-end phones
• Budget phones

By Coverage:

• Physical Damage
• Internal Component failure
• Theft & Loss Protection
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Mobile Phone Insurance industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.