The mobile device insurance market is growing thanks to ever-increasing consumer dependence on smartphones. By providing consumers with peace of mind regarding mobile device damage and theft, mobile insurers are capitalizing on a market that’s expected to eclipse $27 billion by 2020.
Mobile insurance’s road to success hasn’t always been smooth. At one point, researchers found that around 40% of mobile device insurance claims were fraudulent.
Media outlets aren’t making the path any easier, either. With reputable publications like Consumer Reports suggesting people may not need mobile insurance, you have to take time to eliminate potential reasons to bypass the peace of mind you provide.
Here, we’ll look at 3 barriers to mobile insurance success and how overcoming them can drive greater consumer adoption.
1. Eliminating Fraudulent Claims
Especially in the earlier days of mobile phone insurance, consumers would submit claims of devices with fake problems simply to receive a new device. Or, if you want to look at a more extreme case, one consumer was found guilty of fraud after submitting claims that resulted in possession of $1.6 million worth of cell phones.
Insurance fraud certainly isn’t unique to the mobile device sector of the market. However, when the insurance policy is optional like it is for mobile devices, fraudulent claims are especially troublesome.
Fraudulent claims force you to increase policy prices for everyone, which can deter new consumers from adopting. And fraud pushes you to come up with stricter policies, which can also hurt adoption.
Greater control over the device supply chain along with diagnostic tools that can remotely detect the condition of a phone prior to insuring are critical to curbing mobile insurance fraud.
2. Simplifying the Adoption Experience
In many cases, consumers are put off by complicated terms and conditions for insurance policies. For example, many device protection programs have set coverage and price regardless of the device owned or coverage needed. Further, some programs charge the same price yet offer different coverage by operating system (Apple iOS vs Android) which causes more confusion for customers. And again, because mobile device insurance is optional, overwhelming policies presented at the point of purchase can push consumers to forget the idea altogether.
Terms and conditions help you safeguard your business against potential fraud and set the expectations for claims handling. But if you have the right approach to delivery, complete with granular insights into device grading and market trends, you can take strides to make terms and conditions more straightforward for consumers.
3. Making Enrollment Periods Consumer-Friendly
The vast majority of mobile insurance policies are contracted at the point of purchase for a new device. Some providers have experimented with open enrollment, but it certainly hasn’t been the norm—it’s too risky.
However, our insurance solution helps you create evergreen, open enrollment for mobile device insurance, which can help build trust with consumers and unlock opportunities to pull in new subscribers. And with advanced diagnostics software, you can ensure devices meet insurance requirements whether it’s at the point of sale, months down the road, or in the middle of a claim.
If consumers know what they’re buying into with mobile device insurance and have a clear path to buy in, it’s more likely they’ll trust your program.
Expand Your Mobile Insurance Market
Patent-pending diagnostics software, advanced screen health identification driven by artificial intelligence, and support for open enrollment make the HYLA insurance solution a valuable proposition for providers.
It’s not just valuable for streamlining your own backend logistics, but also for creating better experiences for your customers.
Consumer dependence on smartphones and other mobile devices like wearables will only increase in the coming years. Now, you can give your insurance program a boost that will lead to valuable returns as consumers search for peace of mind.
If you want to learn more about the HYLA insurance offering, contact us today.