Indian Smartphone Insurance Market to Touch $500 Million by 2025

According to the report, the smartphone user base is expected to reach close to 1 billion population by end of 2025.

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RedSeer, a consulting firm, released a report on Thursday, 10 December, stating that the Indian smartphone insurance market is expected to grow at a compound annual growth rate (CAGR) of 29 percent and will soon touch USD 500 million (about Rs 3,678 crore), reported PTI.

“India’s smartphone insurance market of about USD 140 million (about Rs 1,030 crore) is expected to grow over 3.5x to reach about USD 500 million by 2025 – a CAGR of about 29 percent,” it said.

Though these products are optional add-ons when purchasing a new phone, customers can buy the same separately from other smartphone insurance providers.

According to the report, the smartphone user base is expected to reach close to 1 billion population at a run rate of about 78 million new users being added per year by the end of 2025.

"Smartphone insurance is truly evolving as a great opportunity for the Indian general insurance industry, with India on the path to become the largest smartphone market in the world, and the customer base getting increasingly aware of the benefits of owning a smartphone insurance," said Abhishek Chauhan, India Consulting Head of RedSeer.

The report added that some unlicensed players which are operating as quasi-insurers have found support from various investors indicating a lack of awareness in the risks associated with particular smartphone models.

A critical requirement for the sustainable growth of this segment is the importance of the regulators to interview to ensure consumers interests are protected.