Mobile-Phone Insurance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Phone Type (Budget Phones, Mid & High-end Phones, Premium Smartphones), By Coverage (Physical Damage, Internal Component Failure, Theft & Loss Protection, Virus & Data Protection, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 34.98 Billion
CAGR (2026-2031)	12.78%
Fastest Growing Segment	Theft & Loss Protection
Largest Market	North America
Market Size (2031)	USD 71.98 Billion

Market Overview

The Global Mobile-Phone Insurance Market will grow from USD 34.98 Billion in 2025 to USD 71.98 Billion by 2031 at a 12.78% CAGR. Mobile phone insurance is a risk management product designed to provide financial protection against the costs associated with accidental damage, theft, loss, or mechanical breakdown of cellular devices. The market is primarily supported by the escalating retail price of premium smartphones which encourages consumers to secure coverage to mitigate the financial risk of replacement. Additionally, the increasing fragility of modern device designs with glass components necessitates reliable protection plans. According to CTIA, in 2024, the number of 5G devices in the United States reached 259 million, highlighting the expanding volume of high value assets that drive the demand for insurance coverage.

One significant challenge impeding market expansion is the prevalence of fraudulent claims which drives up premium costs and necessitates rigorous verification protocols. Insurers must implement stringent fraud detection measures that often result in complex claim procedures, potentially frustrating legitimate customers and reducing policy renewal rates. This operational friction creates a barrier for consumers who prioritize convenience and affordability, thereby limiting the overall market penetration. Consequently, the industry faces the difficult task of balancing robust security with a seamless user experience to ensure sustained growth.

Key Market Drivers

The high frequency of accidental damage and screen failures serves as a primary catalyst for market growth, as the physical vulnerability of modern handsets exposes owners to significant out-of-pocket expenses. As manufacturers transition toward larger, edge-to-edge glass displays and complex internal components, the likelihood of critical breakage has intensified, compelling consumers to seek financial immunity through comprehensive protection plans. This trend is financially significant; according to Allstate Protection Plans, March 2024, in the 'Mobile Myth-conceptions' report, Americans spent $8.3 billion on screen repairs alone in 2023, a figure that nearly tripled the amount spent in 2018. Consequently, the exorbitant cost of component replacement is driving the adoption of premium insurance tiers that specifically offer low-deductible or unlimited screen repair services.

Simultaneously, the rising incidence of device theft and loss, particularly in major metropolitan areas, has reinforced the necessity for coverage that extends beyond simple mechanical breakdown. Organized crime rings increasingly target high-value handhelds for resale in international markets, creating a climate of insecurity that incentivizes policy enrollment to mitigate total asset loss. According to Actuarial Post, January 2025, data obtained from the Metropolitan Police indicated that over 70,000 phones were stolen in London in 2024, representing a substantial 34% increase from the previous year. To secure these appreciating assets, the market is expanding to support the broader ecosystem's residual value; according to Assurant, in 2025, the U.S. mobile device trade-in market returned a record $4.5 billion to consumers in 2024, underscoring the critical economic need to maintain device possession and condition through insurance.

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Key Market Challenges

The prevalence of fraudulent claims constitutes a persistent barrier to the expansion of the Global Mobile-Phone Insurance Market. This issue directly impacts the industry's cost structure, as insurers are compelled to offset financial losses through higher premiums, reducing the affordability of plans for average consumers. Furthermore, the necessity for stringent fraud detection protocols introduces operational friction. Legitimate customers often face lengthy verification procedures and complex documentation requirements, which diminishes the user experience and lowers trust. Consequently, potential subscribers may view these protections as too cumbersome or expensive, thereby limiting overall market penetration.

The financial magnitude of this challenge forces insurers to prioritize risk mitigation over seamless service delivery, complicating customer retention and acquisition strategies. This environment creates a cycle where the cost of doing business remains elevated, deterring price-sensitive consumers from entering the market. The scale of this issue is highlighted by recent industry data. According to the Communications Fraud Control Association (CFCA), in 2025, global fraud losses in the telecommunications industry amounted to approximately $39.89 billion. This significant financial leakage necessitates the rigorous security measures that, while essential, act as a direct constraint on the market’s ability to offer frictionless and low-cost coverage options.

Key Market Trends

The increasing focus on sustainability and refurbished device coverage is reshaping the industry as the circular economy gains traction among cost-conscious and environmentally aware consumers. Insurers are modifying their product portfolios to offer standalone protection for pre-owned devices, a segment previously underserved due to warranty limitations and valuation challenges. This shift allows providers to tap into the growing secondary market by extending the lifecycle of handsets through repair-focused policies rather than device replacement. The economic scale of this opportunity is vast; according to the GSMA, March 2025, in the 'Rethinking Mobile Phones: The Business Case for Circularity' report, the global market for refurbished phones and repair services is projected to exceed $150 billion by 2027, creating a substantial new revenue stream for agile insurance providers.

Simultaneously, the expansion into cybersecurity and digital wallet protection represents a fundamental pivot from insuring hardware to protecting the user's digital identity and financial assets. As smartphones become the primary interface for banking and payments, the risk profile has evolved to include sophisticated software threats such as identity theft and unauthorized fund transfers. Insurers are responding by bundling software security features and financial reimbursement clauses into premium tiers to mitigate these non-physical risks. This necessity is driven by escalating threat levels; according to Zimperium, September 2024, in the '2024 Global Mobile Threat Report', 82% of phishing sites specifically targeted mobile devices, underscoring the critical need for integrated digital security solutions within modern insurance policies.

Segmental Insights

The Theft & Loss Protection segment is distinguishing itself as the fastest-growing category in the Global Mobile-Phone Insurance Market, primarily driven by the soaring replacement costs of premium smartphones and increasing global theft rates. Market analysis indicates that as device prices rise, the financial impact of losing a flagship phone becomes untenable for many consumers, fueling the demand for specific anti-theft coverage. Furthermore, industry data from the GSMA highlights that the high resale value of modern devices has led to a significant surge in theft incidents across major urban centers. This risk landscape has necessitated a consumer shift toward comprehensive protection plans, positioning theft coverage as a critical growth driver.

Regional Insights

North America maintains a leading position in the global mobile phone insurance market, driven principally by the widespread adoption of high-value smartphones in the United States and Canada. The region experiences a high frequency of device upgrades and expensive repair services, prompting consumers to secure protection plans against accidental damage, theft, and loss. Furthermore, the established infrastructure of major telecom carriers and device manufacturers facilitates the seamless integration of insurance offers at the point of sale. This strong uptake is sustained by consumer preference for extended warranty programs that safeguard their significant financial investment in mobile technology.

Recent Developments

• In May 2025, Bolttech entered into a strategic partnership with Sumitomo Corporation to deliver technology-enabled embedded device solutions across key Asian markets. The collaboration involved establishing a joint venture focused on providing end-to-end device lifecycle management services, including device protection and upgrade programs. By combining the insurtech’s digital distribution capabilities with the trading house’s extensive network, the alliance aimed to meet the rising demand for comprehensive smartphone insurance and support in the region. The initiative specifically targeted the growing need for affordable protection options among younger consumers in markets such as South Asia and Southeast Asia.
• In October 2024, Likewize announced that Genstar Capital had increased its strategic investment in the company, effectively becoming its majority shareholder. This significant financial transaction was designed to reinforce the commitment to accelerating the company's growth within the global tech protection and support sector. The solidified partnership aimed to fuel further innovation in comprehensive device protection services, warranty management, and repair solutions provided to major telecommunications clients and retailers globally. While the private equity firm assumed a majority position, the existing management team and other investors retained minority stakes to ensure continuity in the company’s strategic mission.
• In May 2024, Smart Communications, Inc. launched a new mobile protection product known as "Smart Phone Protect" for its subscribers in the Philippines. Powered by the insurtech firm Igloo, this offering was designed to provide affordable coverage for device repair and replacement services. The program allowed users to secure their mobile phones against accidental damage, including cracked screens and liquid damage, through a fully digitalized claim process. This launch highlighted the growing trend of integrating accessible insurance products directly into telecommunications services to address the protection gap for mobile device users in the Southeast Asian region.
• In March 2024, Bolttech announced a strategic partnership with stc Group, a leading telecommunications enabler, to expand its device protection offerings into the Middle East. This collaboration aimed to introduce innovative embedded insurance solutions to the telecom operator's customer base, thereby enhancing their digital lifestyle experience. The initiative marked a significant step in the insurtech company's global expansion strategy, leveraging the partner's established market presence to deliver seamless mobile device protection. The agreement focused on integrating technology-driven safeguards for smartphones and other connected devices directly into the operator's service ecosystem, ensuring comprehensive coverage for valuable consumer electronics.

Key Market Players

• Apple Inc.
• Verizon Communications Inc.
• Samsung Electronics Co., Ltd.
• Assurant, Inc.
• SquareTrade, Inc.
• Allianz SE
• Asurion, LLC
• American International Group, Inc.
• T-Mobile US, Inc.
• CPP Assistance Services Pvt Limited

By Phone Type	By Coverage	By Region
Budget Phones Mid & High-end Phones Premium Smartphones	Physical Damage Internal Component Failure Theft & Loss Protection Virus & Data Protection Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Mobile-Phone Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Mobile-Phone Insurance Market, By Phone Type:

• Budget Phones
• Mid & High-end Phones
• Premium Smartphones

• Mobile-Phone Insurance Market, By Coverage:

• Physical Damage
• Internal Component Failure
• Theft & Loss Protection
• Virus & Data Protection
• Others

• Mobile-Phone Insurance Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE