Mobile Phone Insurance Insight Report 2015
The UK has among the highest levels of mobile phone ownership in the world, with 82% of adults owning a smartphone, and 18% a feature phone – yet only 21% of phone owners have insurance, with an additional five per cent saying they plan to take it out. The market opportunity to reach both those who already want to purchase, and to convert those who say they don’t plan to is huge – and understanding that market is imperative for the wider industry. The second annual report into the mobile phone insurance (MPI) industry from Assurant Solutions and YouGov looks at the UK’s attitudes towards MPI; what people look for in a policy, what drives demand, and crucially, where the industry is headed in the future.
The report is the largest and most in-depth of its kind, building upon YouGov’s long-running (annually since 2011) research into the industry. The specially commissioned Assurant Solutions analysis provides insights into consumer attitudes to MPI, enabling us to build policies and services that meet and exceed the needs (known and unknown) and expectations of our clients and their customers.
MPI: The Policies and Policyholders
In line with last year’s report, cost of cover is the most important factor for consumers when choosing a policy, followed by level of cover and quick delivery of replacement. Whist this ranking is the same regardless of where the policy was purchased, those who get their insurance via their bank are most concerned with cost, and those who purchased it via their network operator are more likely on average to be concerned with speed of delivery and policy excess.
Clarity of policy is another area that revealed discrepancies amongst consumers, with those who have their policy from their home insurer the least likely to understand the policy details (45% vs 58% average), and yet the most likely to consider ease of understanding to be an important feature when buying it (31% vs 27% average).
We have seen smartphone penetration steadily increase as feature phone ownership decreases. As feature phone owners are forced into buying more modern handsets (contracts end, handsets reach the end of their natural shelf-life), we will get to a point in the near future where a smartphone is the only phone. As this transition continues, we will also see an increased reliance on the handset as a tool for controlling other technology. The connected home is for some still an ethereal concept, but just as smart TVs are now in more households than standard sets, technology is constantly evolving and a connected home will become the norm for everyone – probably sooner than we think!
As we expect that mobile phones will soon be the central device in our lives – used to control everything from home security to energy use to shopping and travel – so protecting that device will become more important. Currently, data backup languishes at the bottom of key features in terms of customer demand, but as our reliance on the handset as more than just a phone increases, so will the need to protect that data and we will see demand for insurance that provides the right cover and the right service grow exponentially. Similarly, quick delivery of a replacement handset is likely to overtake the top-ranked cost of insurance and level of cover as the most important features; and once again Assurant Solutions is leading the charge, as we have recently launched our new Same Day Delivery service for retail banking MPI customers.
Keen to know more?
The full report includes deep-dive insights into the claims process, satisfaction with policies and providers, and trust in the industry. Our authoritative research identifies the opportunity to drive your business, and will enable us to shape the future of MPI in a way that delivers the best service and outcomes for consumers.
If you’d like to learn more about the report findings or receive a full electronic copy of the report, contact us selecting “Media”, and find out how we can help grow your business, exceed your customers’ expectations, and help continue to protect what matters most as we move into the future.