What you need to know
Ownership and use of valuable portable devices continue to increase, but expensive price tags and market trends could result in a weaker appetite for regular upgrades. Consumers show a desire to keep their devices for longer and are looking to protect them. However, many consumers continue to neglect their insurance needs, putting their possessions at risk.
Traditional insurers face competition from an increasing array of providers offering wide levels of protection. Open Banking and GDPR (General Data Protection Regulation) directives can reassure consumers to make the most out of their personal gadgets, and pave the way for innovative insurance products, fairer pricing and improved competition. Crucially, they could connect insurers with owners who have just bought or upgraded a device and are most likely to buy cover.
Products covered in this Report
For the purposes of this Report, Mintel has used the following definitions:
Gadget insurance is a general insurance product that covers gadgets against at least one of the following risks: loss, theft, accidental damage and breakdown.
A gadget is defined as a valuable and portable electronic device. Therefore, gadget insurance policies cover such items as smartphones, laptops, tablets, portable/handheld games consoles, digital cameras, camcorders, smartwatches, high-end headphones/earphones (with a retail price of at least £200) and other portable and valuable gadgets over £200 in value (eg Virtual Reality set, portable speakers).
Aside from specific gadget insurance from specialised insurers, cover may be included under home contents insurance, or can be acquired as an add-on.
Policies that protect gadgets to a varying degree can be arranged with the manufacturer, the retailer the gadget is bought from, via a mobile network operator, or received as a perk with financial products such as packaged current accounts.
