Abstract
Mobile Telephone Insurance in Europe is a report about the market for mobile
telephone insurance in 18 countries in Europe: Austria, Belgium, the Czech
Republic, Denmark, France, Germany, Hungary, Ireland, Italy, the Netherlands,
Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the UK. The
report draws on extensive primary and secondary research covering 469
organisations involved in the marketing and distribution of mobile telephone
contracts and handsets. These include 171 retailers oriented primarily towards
online sales and / or home shopping, 160 retailers specialising in the
distribution of electrical goods with ‘bricks and mortar' outlets, 90
mobile network operators (including MVNOs and network operators both with and
without retail outlets), and 48 generalist retailers with ‘bricks and
mortar' outlets. A number of factors combine to form a firm rationale for a
report and database about mobile telephone insurance in Europe. First and
foremost, this is the first ever focused publication on the subject on a
pan-European basis. This is curious given not only the substantial volume of
data and analysis concerning the underlying markets for the mobile telephone
contracts, handsets and services themselves but also the fact that the market
for mobile telephone insurance is estimated by Finaccord to have been worth as
much as € 2.05 billion across 18 European countries in 2008. Indeed, it
is known that mobile telephone network operators and other distributors that
have developed successful programs for mobile telephone insurance can generate
an increasingly significant proportion of their overall profits from the
provision of this type of policy. This is important given that the underlying
markets for the mobile telephone contracts, handsets and services are
generally characterised by both increasing maturity and declining profit
margins.
Moreover, the research published in this report underlines the fact that
mobile telephone insurance in most European countries remains under-developed
with extremely low rates of subscriber penetration indicating considerable
scope for future expansion. In fact, as it matures, it is possible that the
market could triple in size from its current value. Key findings from the
executive summary include: the market for mobile telephone insurance in Europe
was worth in the region of € 2.05 billion in 2008, equivalent to
estimated gross premiums written across all mobile customers, both insured and
uninsured, of just € 3.87; the percentage of network operators and other
distributors with their own mobile telephone insurance program is highest in
France, Ireland the UK and lowest in the Czech Republic, Hungary and Poland;
if the penetration rate reaches 20.0% of subscribers across all 18 countries,
which is the maximum that Finaccord considers achievable in the foreseeable
future for stand-alone sales, the approximate market size would triple to
around € 6.15 billion; however, the degree to which the market can triple
from its current size to this kind of magnitude is largely dependent upon the
degree to which the major distributors of mobile contracts and handsets, most
notably the mobile network operators themselves, introduce programs for mobile
telephone insurance; as organic growth in mobile telephone revenues tails off,
mobile network operators may begin to migrate from the view that mobile
telephone insurance is primarily a useful means of enhancing the loyalty of
customers to the opinion that it is an increasingly important source of
profitability.
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