<There is reliable data for the U.K. and Europe that shows poor take
up of these insurance schemes. 1 in 5 of mobile phone owners do not
have insurance. Around 30% are insured (20% through mobile phone
insurance and 10% through their home insurance policies).
I have calculated that the take up of insurance in the U.S. is
approximately 20%. This has been calculated from the information
below. This compares favourably with the data for the U.K.
Asurion is North America’s second largest provider of handset
insurance programs. They serve 10 million subscribers in the U.S.
http://www.asurion.com/MK.asp
They have 30% market share of the mobile phone insurance market. This
equates to a total market of 33.3 million insurance subscribers.
http://company.monster.com/rrm/
There are approximately 150 million mobile phones in the U.S.
http://cyberatlas.internet.com/markets/wireless/article/0,,10094_3068991,00.html
According to Asurion, 20% of mobile phone subcribers will lose or
damage their handsets.
http://www.asurion.com/hdi.html
A survey of 2,900 households in 2000 found that 19 percent had bought
cell phones to replace those lost.
http://members.cruzio.com/~bhawk/my15fame.htm
U.K.
In 2002, 700,000 mobile phones were stolen. Two-thirds of victims are
aged between 13 and 16.
Despite a high level of mobile phone crime, a survey by ICM found that
less than 30% of mobile
phones are insured. 20% are insured via specific mobile phone
insurance and 10% through house insurance. Contract phone owners are
more likely to have insurance (49%) than pre-pay owners (21%).
The lack of insurance is the result of the false assumption that
mobile phones are covered in household insurance. In reality 80% of
household insurance does not cover mobile phone loss.
Losing a phone is particularly expensive for Pay Monthly customers as
the handsets are heavily subsidised and replacement costs can be up to
ten times the original outlay.
In addition a huge volume of calls could be made before the owner
notices that the phone is missing. The Guardian highlights the case of
a mobile phone customer who was charged £1000 for calls made by a
thief.
A survey by Continental Research found that 1.6 million people lost
their mobile phones in 2001, 600,000 dropped them down the toilet and
200,000 accidently threw them in with the wash.
http://www.camagazine.com/index.cfm/ci_id/15098/la_id/1.htm
A large number of mobile phone insurance claims are rejected. As many
as 40% are refused.
Mobile phone insurance has not featured prominently in the media.
According to Phones4U, customers do not appreciate the true value of
their mobile phones as they often get a phone free or only pay up to
£100 whereas replacement costs can be between £250 and £275.
A survey by Mobile Phone Centre found that accidents involving
toilets, beer and animals account for 21% of mobile phone claims.
References:
Market – ICM survey
http://www.icmresearch.co.uk/reviews/2002/telecoms-mobile-security.htm
Honouring of claims
http://money.guardian.co.uk/phones/story/0,13283,950219,00.html
Claims
http://uk.gsmbox.com/news/mobile_news/all/1836.gsmbox
£1000 bill for thief’s calls.
http://money.guardian.co.uk/phones/story/0,13283,981798,00.html
Protecting your mobile phone.
http://money.msn.co.uk/MyMoney/Insight/MoneySpinner/ThisWeek/mobilephoneinsurance/default.asp
A database has been set up to make mobile phones useless to thieves
however stolen mobile phones can still be used by reprogramming them.
http://www.gsmworld.com/news/press_2002/press_22.shtml
30% of customers insured.
http://tones.5u.com/phone_resources/you_and_your_moblie_phone.htm
10,000 per month stolen. Two thirds of victims are aged between 13
and 16.
http://www.met.police.uk/crimeprevention/phone.htm
700,000 mobile phones were stolen in 2002
http://www.cpwplc.com/cpw/media/mobilecrimes/
Insurance costs.
http://news.bbc.co.uk/1/hi/programmes/working_lunch/1840566.stm
Insurance costs between £25 and £100 per year depending on the level
of cover and who provides it.
http://money.msn.co.uk/MyMoney/Insight/MoneySpinner/ThisWeek/mobilephoneinsurance/default.asp
Europe
According to homecare, of the 280 million mobile phone handsets in use
in Europe only a tiny proportion are insured. The number of insured
phones is expected to increase as theft rates rise and consumers are
forced to meet replacement costs.
http://www.cpp.co.uk/Corporate/pdfs/mobile_phone.pdf
The company reports that its mobile phone insurance product has
performed well.
http://www.cpp.co.uk/Corporate/pdfs/international.pdf
Australia
According to Allied Asia Insurance, the take up rate for their mobile
phone insurance is 50%.
http://finance.ninemsn.com.au/money/Insurance/stories/story_340.asp
Ireland
In Ireland Carphone Warehouse is looking to achieve growth by selling
products like mobile phone insurance.
http://www.examiner.ie/pport/web/business/Full_Story/did-sgUO9qhj-Gasw.asp>
<Additional links:>
<U.S. mobile subscriber numbers to pass 200 million by 2006.>
<http://www.cellular-news.com/story/7566.shtml>
<Search strategy:>
<"mobile phone insurance" survey>
<http://www-sj.google.com/search?sourceid=navclient&q=%22mobile+phone+insurance%22+survey>
<"mobile phone insurance" million>
<http://www-sj.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22mobile+phone+insurance%22+million>
<"mobile Phone insurance" growth>
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&as_qdr=all&q=%22mobile+Phone+insurance%22+growth>
<uk "mobile phones" stolen >
<http://www-sj.google.com/search?sourceid=navclient&q=uk+%22mobile+phones%22+stolen+>
<uk "mobile phone market" billion>
<http://www-sj.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=uk+%22mobile+phone+market%22+billion>
<Hope this helps.> |
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