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Description

Description

“People want to keep their devices for longer and are keen to protect them. Gadget insurance has a strong case in a world of expensive, indispensable technology and sustainable-minded consumers. Simple, relevant products that provide clear value appeal to owners, but insurers also need to find a spot at the all-important moment of purchase.”

- Irene Salazar, Financial Services Analyst

This report will look at the following areas:

  • Extended warranties: right place, right time
  • Keeping gadgets for longer: insurance and the sustainability angle

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • ‘On the go’ internet use becomes the norm
              • Figure 1: Using the internet ‘on the go’, by age, 2013-18
            • Intentions to buy remain robust
              • Figure 2: Technology products: recent ownership and intentions to buy, June 2018
            • The average household owns possessions worth £35,000
              • GDPR and Open Banking come into force
                • FCA considers ban on sale of extended warranties alongside rent-to-own agreements
                  • Companies and brands
                    • Standalone gadget insurers want to stand out from the crowd
                      • Alternative distribution channels: mobile network operators
                        • Launch activity and innovation
                          • First dedicated gadget insurance comparison site launched
                            • Challengers incorporate insurance into app-only banking proposition
                              • The consumer
                                • 36% of Millennials have four or more types of gadgets
                                  • Figure 3: Ownership of gadgets, September 2018
                                • Home insurance is the most common way of insuring gadgets
                                  • Figure 4: Penetration of gadget insurance, by type of gadget, September 2018
                                  • Figure 5: Penetration of gadget insurance, by type of coverage and gadget, September 2018
                                • Increasing cost of gadgets is powerful argument in favour of insurance
                                  • Figure 6: Reasons for not having gadget insurance, September 2018
                                • People want to keep their gadgets for longer and want to protect them
                                  • Figure 7: Attitudes towards gadgets, September 2018
                                • Time of gadget purchase is crucial for insurance sales
                                  • Figure 8: Gadget risk exposure, September 2018
                                • Consumers want simplicity but there is room for personalisation
                                  • Figure 9: Attitudes towards gadget insurance, September 2018
                                • What we think
                                • Issues and Insights

                                  • Extended warranties: right place, right time
                                    • The facts
                                      • The implications
                                        • Keeping gadgets for longer: insurance and the sustainability angle
                                          • The facts
                                            • The implications
                                            • The Market – What You Need to Know

                                              • ‘On the go’ internet use becomes the norm
                                                • Average possessions worth £35,000 but many are uninsured
                                                  • Competitor Products – Wide Choice But Clear Differences
                                                    • Home contents
                                                      • Extended warranties
                                                        • Financial products
                                                          • GDPR and Open Banking come into force
                                                            • FCA considers ban on sale of extended warranties alongside rent-to-own agreements
                                                            • Market Drivers

                                                              • Majority of people use the internet ‘on the go’
                                                                • Figure 10: Using the internet ‘on the go’, by age, 2013-18
                                                              • Preferred devices give an indication of the scope for gadget insurance
                                                                • Figure 11: Using the internet ‘on the go’, by device and age, 2018
                                                              • Intentions to buy remain robust
                                                                  • Figure 12: Technology products: recent ownership and intentions to buy, June 2018
                                                                • The average household owns possessions worth £35,000
                                                                  • 81% of ‘Generation Rent’ without contents cover
                                                                  • Competitor Products

                                                                      • Home contents
                                                                        • Extended warranties
                                                                          • Financial products
                                                                          • Regulatory and Legislative Changes

                                                                            • FCA looks to measure value of add-ons
                                                                              • GDPR and Open Banking come into force
                                                                                • FCA considers ban on sale of extended warranties alongside rent-to-own agreements
                                                                                • Companies and Brands – What You Need to Know

                                                                                  • Competitive strategies
                                                                                    • Standalone gadget insurers want to stand out from the crowd
                                                                                      • Alternative distribution channels: mobile network operators
                                                                                        • Launch activity and innovation
                                                                                          • First dedicated gadget insurance comparison site launched
                                                                                            • Challengers incorporate insurance into app-only banking proposition
                                                                                            • Competitive Strategies

                                                                                              • ZugarZnap’s Millennial proposition
                                                                                                • Alternative distribution channels: mobile network operators
                                                                                                  • Social media campaigns
                                                                                                    • Cashback sites
                                                                                                    • Case study – Trōv’s On-demand Insurance

                                                                                                        • Insure whatever you love…
                                                                                                          • …whenever you need it…
                                                                                                            • …directly from your phone
                                                                                                              • Figure 13: Trōv’s user interface
                                                                                                            • Dynamic price adjustment
                                                                                                            • Launch Activity and Innovation

                                                                                                              • First dedicated gadget insurance comparison site launched
                                                                                                                • Starling Bank’s in-app marketplace offering so-sure smartphone insurance
                                                                                                                  • Revolut partners with Simplesurance to offer entirely digital mobile phone insurance
                                                                                                                  • The Consumer – What You Need to Know

                                                                                                                    • 36% of Millennials have four or more types of gadgets
                                                                                                                      • Home insurance is the most common way of insuring gadgets
                                                                                                                        • Increasing cost of gadgets is powerful argument in favour of insurance
                                                                                                                          • People want to keep their devices for longer and take steps to protect them
                                                                                                                            • Time of gadget purchase is crucial for insurance sales
                                                                                                                              • Parents are a key demographic
                                                                                                                              • Ownership of Gadgets

                                                                                                                                • Gadget ownership is almost universal among adults
                                                                                                                                  • Figure 14: Ownership of gadgets, September 2018
                                                                                                                                • 36% of Millennials have four or more types of gadgets
                                                                                                                                  • Figure 15: Repertoire of gadgets owned, by generation, September 2018
                                                                                                                              • Penetration of Gadget Insurance

                                                                                                                                • 43% of smartphone owners have insurance
                                                                                                                                  • Figure 16: Penetration of gadget insurance, by type of gadget, September 2018
                                                                                                                                • Gadget insurance is a minority option…
                                                                                                                                  • …but increases among more regularly used products
                                                                                                                                    • Figure 17: Penetration of gadget insurance, by type of coverage and gadget, September 2018
                                                                                                                                • Reasons for Not Having Gadget Insurance

                                                                                                                                  • Increasing cost of gadgets is powerful argument in favour of insurance
                                                                                                                                    • Figure 18: Reasons for not having gadget insurance, September 2018
                                                                                                                                  • Uninsured owners tend to have one main reason for not buying a policy
                                                                                                                                    • Figure 19: Repertoire of reasons for having uninsured gadgets, September 2018
                                                                                                                                • Attitudes towards Gadgets

                                                                                                                                  • Two thirds claim to always take precautions with their devices
                                                                                                                                    • People are aware they could do more
                                                                                                                                      • Figure 20: Attitudes towards gadgets, September 2018
                                                                                                                                    • Finding potential customers among those who have broken a gadget
                                                                                                                                      • Figure 21: Consumers and gadget insurance – CHAID – Tree output, September 2018
                                                                                                                                  • Gadget Risk Exposure

                                                                                                                                    • Worldwide cover is key
                                                                                                                                      • Good timing is essential for sales
                                                                                                                                        • Figure 22: Gadget risk exposure, September 2018
                                                                                                                                      • Owners of uninsured gadgets are less concerned
                                                                                                                                        • Figure 23: Gadget risk exposure, by type of coverage, September 2018
                                                                                                                                    • Attitudes towards Gadget Insurance

                                                                                                                                      • Consumers want simplicity…
                                                                                                                                        • …but there is room for personalisation
                                                                                                                                          • Figure 24: Attitudes towards gadget insurance, September 2018
                                                                                                                                        • Existing policyholders more open to innovative options
                                                                                                                                          • Figure 25: Agreement with attitudes towards gadget insurance, by type of coverage, September 2018
                                                                                                                                        • Capturing parents’ attention
                                                                                                                                          • Figure 26: Agreement with attitudes towards gadget insurance, parents^ vs non-parents, September 2018
                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                          • Abbreviations
                                                                                                                                            • Consumer research methodology
                                                                                                                                              • CHAID Analysis Methodology

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