Table of Contents
Executive Summary
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- The market
- Gadget cover is widely held, though it comes in different forms
- Product evolution
- Value of the market
- Size of the add-on sector
- Market factors
- Technological advances drives growth…
- …but the market is facing increased regulatory pressure
- Gadget and mobile phone insurance is commonly sold as an add-on to a packaged current account
- Company, brands and innovation
- Leading administrators and underwriters
- Product innovation
- The consumer
- UK adults are avid users of mobile devices
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- Figure 1: Personal ownership of gadgets, by type, June 2014
- Frequency of taking gadgets outside the home
- One in six have accidentally damaged their gadget
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- Figure 2: Experience of loss, damage, theft and breakdown, June 2014
- Take-up of gadget and other related insurance
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- Figure 3: Ownership of gadget/mobile phone insurance and personal belongings cover, June 2014
- Experience of making a claim
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- Figure 4: Proportion of policyholders who have made claim in the past two years and claimant satisfaction, June 2014
- One in ten of the non-insured are planning to get cover in the coming year
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- Figure 5: Likelihood of getting mobile phone or gadget insurance within the next 12 months, June 2014
- Attitudes toward gadget insurance
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- Figure 6: Agreement with statements about gadget insurance, June 2014
- What we think
Issues in the Market
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- The battle for customers in a mobile world
- The facts
- The implications
- Putting a price on protection
- The facts
- The implications
- Working towards greater transparency and better claims handling
- The facts
- The implications
Trend Application
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- Trend: Extend my Brand
- Trend: Click and Connect
- Trend: The Suite Life
Market Drivers
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- Key points
- The average person owns electronic devices worth over £4,000
- Laptops and smartphones are the most commonly owned gadgets
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- Figure 7: Technology products personally owned, April 2013, April 2014 and June 2014
- Technology buying intentions are up strongly in 2014
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- Figure 8: Technology products plan to buy/upgrade in the next three months, April 2013 and April 2014
- Average price of smartphones, laptops and tablets continues to fall
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- Figure 9: Value (and volume) of the mobile phone, laptop and tablet markets, 2011-14
- Mobile phone cover is a staple part of the packaged account offering
- Perceived relevance of mobile phone and gadget insurance by packaged account holders
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- Figure 10: Inclusion and perceived relevance of common packaged account benefits, June 2013
- Summary of recent regulatory developments affecting the gadget insurance market
Market SWOT Analysis
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- Figure 11: The gadget insurance market– SWOT analysis, 2014
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Who’s Innovating?
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- Key points
- An evolving market
- SPB Group brings walk-in repair model to the UK
- Switched On Insurance launches travel add-on product
Market Size and Segmentation
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- Key points
- Exact product penetration is difficult to determine due to consumer confusion over exactly what cover they have
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- Figure 12: Ownership of gadget and mobile phone insurance, June 2014
- A market with strong sales growth and good expansion potential
- Most providers partner with specialist third-party administrators and underwriters
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- Figure 13: Selected providers of gadget/mobile phone insurance and their administrators/underwriters, August 2014
Companies and Products
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- Assurant Solutions
- Company description
- Product/service range
- SPB UK & Ireland (formerly Citymain)
- Company description
- Product/service range
- Supercover Insurance
- Company description
- Product/service range
Brand Communication and Promotion
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- Key points
- Protect Your Bubble is the leading gadget insurance advertiser
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- Figure 14: Advertising expenditure on mobile and gadget insurance, 12 months to June 2014
- A note on adspend
Gadget Ownership and Usage Outside of the Home
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- Key points
- Survey background
- Some 99% of UK adult internet users own at least one electronic device
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- Figure 15: Personal ownership of gadgets, by type, June 2014
- Laptops still more popular than tablets
- Wearable devices are set to be the “next big thing”
- Some 84% normally carry their smartphone on them every day
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- Figure 16: Frequency of taking gadget outside the home, by type of gadget, June 2014
Experience of Common Risk Factors
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- Key points
- Accidental damage is the top threat
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- Figure 17: Experience of loss, damage, theft and breakdown and of taking gadget(s) on holiday, June 2014
- Mitigating the cost of claims
- Globe trotting
Penetration of Gadget Insurance
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- Key points
- Personal belongings cover is the main competitor to gadget insurance
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- Figure 18: Ownership of gadget/mobile phone insurance and personal belongings cover, June 2014
- Standalone gadget insurance fills a gap in the market…
- …but with many people owning more than one policy type, could some be unnecessarily doubling up their coverage?
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- Figure 19: Ownership of gadget/mobile phone insurance and personal belongings cover – cross-tabulation, June 2014
- Some consumers may be mistaken about exactly what is covered by their home contents policy
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- Figure 20: Requirement to pay extra for gadget/mobile phone or personal belongings cover attached to home contents policy, June 2014
- Good expansion potential
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- Figure 21: Likelihood of getting mobile phone or gadget insurance within the next 12 months, June 2014
Claims Experience
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- Key points
- Room for improvement in handling claims
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- Figure 22: Proportion of policyholders who have made claim in the past two years and claimant satisfaction, June 2014
Attitudes toward Gadget Insurance
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- Key points
- More work to do in regards to building consumer trust
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- Figure 23: Agreement with statements about gadget insurance, June 2014
Appendix – Gadget Ownership by Demographics
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- Figure 24: Ownership of gadgets – top six, June 2014
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- Figure 25: Ownership of gadgets – final five, June 2014
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Appendix – Usage Outside the Home by Demographics
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- Figure 26: Frequency of taking smartphone outside the home, by demographics, June 2014
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- Figure 27: Frequency of taking mobile phone (not smartphone) outside the home, by demographics, June 2014
- Figure 28: Frequency of taking tablet outside the home, by demographics, June 2014
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- Figure 29: Frequency of taking e-Reader outside the home, by demographics, June 2014
- Figure 30: Frequency of taking laptop outside the home, by demographics, June 2014
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- Figure 31: Frequency of taking MP3 player outside the home, by demographics, June 2014
- Figure 32: Frequency of taking digital camcorder/camera outside the home, by demographics, June 2014
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- Figure 33: Frequency of taking portable games console outside the home, by demographics, June 2014
- Figure 34: Frequency of taking Sat Nav outside the home, by demographics, June 2014
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Appendix – Experience of Common Risk Factors
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- Figure 35: Experience of loss, damage, theft and breakdown of gadget, by demographics, June 2014
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- Figure 36: Experience of taking gadget(s) on holiday, by demographics, June 2014
- Figure 37: Experience of loss, damage, theft and breakdown and of taking gadget(s) on holiday, by type of gadget owned, June 2014
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Appendix – Penetration of Gadget Insurance by Demographics
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- Figure 38: Ownership of gadget, mobile phone and personal belongings cover, by demographics, June 2014
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- Figure 39: Ownership of gadget and mobile phone insurance as part of a packaged current account, by demographics, June 2014
- Figure 40: Ownership of standalone gadget and mobile phone insurance, by demographics, June 2014
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- Figure 41: Ownership of gadget/mobile phone insurance and personal belongings cover, by type of gadget owned, June 2014
- Figure 42: Requirement to pay extra for gadget/mobile phone or personal belongings cover attached to home contents policy, by demographics, June 2014
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- Figure 43: Likelihood of getting mobile phone or gadget insurance within the next 12 months, by demographics, June 2014
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Appendix – Claims Experience by Demographics
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- Figure 44: Claims experience and satisfaction, by demographics, June 2014
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- Figure 45: Claims experience and satisfaction, by type of gadget owned, June 2014
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Appendix – Attitudes toward Gadget Insurance by Demographics
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- Figure 46: Agreement with statements about gadget insurance – top five responses, by demographics, June 2014
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- Figure 47: Agreement with statements about gadget insurance – final three response, by demographics, June 2014
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