Research Highlights Key MPI Market Trends
The Assurant Solutions Mobile Journey consumer insight tracker has once again highlighted some key trends in consumer behaviour when it comes to purchasing mobile device protection insurance.
Conducted amongst a representative population of 729 mobile phone users across the UK, the study points not only to the key reasons for purchasing insurance but also highlights how retailers must respond in order to meet consumer needs.
Smartphone holders are more likely to have insurance, be under 40, employed and financially savvy. Likewise, this demographic is also most likely to conduct financial transactions via their phone and therefore purchase insurance products to not only protect their device but also the data they hold on it. The over 50’s tend to be feature phone users and are more reticent about using their devices to conduct transactions. They do however still value the extra peace of mind provided by mobile device protection insurance.
Why is mobile device insurance so important to today’s consumer?
Peace of mind appears to be the main driver for sales with 58 per cent of UK consumers listing this as their main reason for purchase, followed closely by the value of the handset itself. Mobile devices are increasingly expensive purchases and protecting this investment against loss, damage and theft is the reason 43 per cent of respondents purchase protection.
In terms of what consumers value most; theft cover, 24 hour equivalent handset replacement, unauthorised call cover, damage protection (including liquid damage and mechanical breakdown) and loss cover were all included. Respondents also listed phone location technology, data back- up services, malware protection and ID theft cover as important aspects they expect their insurance provider to deliver, once again highlighting that fear of theft remains very much front of mind for mobile phone users.
The role of the sales person is very important
The research highlighted that the role of the sales person is still key when it comes to consumers making an informed decision. Almost a fifth of respondents pointed to the fact that they purchased insurance at point of sale due to the information they received from the salesperson.
Consumers want protection
There is a real opportunity for retailers to listen to the needs of mobile phone users and deliver the valuable peace of mind they want. By partnering with an insurer that builds products most aligned to the needs of their customers and as well as providing training to their sales people to make sure they are educating customers and selling to them when they are most likely to buy, at point of sale, retailers can increase sales and generate added trust in their brand.
To view Assurant Solutions new infographic highlighting the key findings of our survey please click here