In the ideal scenario, mobile phones are secured by consumers at the point of sale, with the help of the retailer. As the AT&T mobile insurance landscape is changing rapidly, insurers can use technology to break out of the traditional model with limited growth potential.
The reality is that consumers are less and less eager for cell phone insurance. Mobile phone insurance is not a popular product, as customers say there is little chance that the device will ever be stolen or lost. At the same time, the annual contracts are inflexible, the payment procedure is complicated and uncertain. Once consumers have purchased the device and exited the store, it is difficult to win them over as insured customers.
Consumers' habits have also changed, they buy fewer new devices. This also means that customers are taking out much less insurance, forcing mobile device insurers to look for new revenue streams. Customers want to see value and choice, which is why the days of the policy are over.
How does technology help?
Sales of new mobile phones have been declining since 2020, and at the same time, used, repackaged mobile phones are becoming more and more popular, thus the protection and insurance of used devices have become increasingly important.
Mobile phone insurance providers can use technology to adapt to change. In addition to traditional new phone insurance, they can also sell asset protection to consumers even after the sale has been finalized. This opens up many opportunities for insurers who want to be a part of the insurance segment, which will expand to $44.1 billion in 2025.
With the help of a solution installed on the device itself, mobile phone insurers can also sell their products online. Users can access the service remotely, and the insurer can also remotely assess the condition of the device, whether it is a new phone or a used, repackaged device.
With the help of new asset protection services, insurers can strengthen their market position. By using the new technology, insurance can be sold regardless of location, both in the store and online.
The solution also reduces the amount of insurance fraud, as it can be used to accurately assess the condition of the device remotely.
According to the new idea, mobile insurance can be purchased via the web or with a mobile app. We can assess the condition of the devices with automation, thus saving on costly human work - as well as eliminating errors caused by human error. The price of insurance can change dynamically, the service can be paid for using in-app purchases - all of these give insurers a serious advantage.
Service provider case study
When a leading mobile service provider from the Pacific Ocean started selling device protection services instead of traditional insurance, it achieved excellent results in a short time. Instead of the traditional 20-30 percent bonding rate, a 65 percent bonding rate was achieved with the new product. The provider's device protection program promised customers that the device would be replaced regardless of the circumstances of its loss, sending the new device in an expedited process - which is very important for customers who rely on their phones.
A customer-centric approach is required
A customer-centric and targeted approach enables mobile insurers to reach out to previously unreachable customers. Customers can purchase device protection tailored to their needs. With device protection, customers can more easily keep their phones safe. The protection is available in a monthly, subscription-based plan after an extremely user-friendly registration process.
As a mobile phone insurance company, let's focus on a service where the customer experience is at the center. Personalized products increase brand loyalty. Among other things, the new asset protection technology puts real-time diagnostic tools in the hands of the insurer. In this way, the service provider assumes a smaller risk, while being more flexible when paying out the damage.
Blancco's solution helps to develop a device protection service by diagnosing the phones to be protected.
