Phablets overthrow tablets and deal insurance industry a pricing challenge
Constantly shifting, unpredictable consumer tech trends call for gadget insurance policies to be increasingly agile and responsive, says Aquarium Software, the global insurance technology integrator. The tablet market – not so long ago touted as the sure-fire future of tech gadgets - is now in rapid decline. Instead, the proliferation of the phablet device is now driving the gadget market. According to Aquarium, gadget insurance companies need adaptable systems to respond nimbly to fast-paced market developments, ensuring they present policies and premiums reflective of consumer needs and trends.
“It’s crucial for gadget insurers to have flexible systems and premiums that respond to ever changing consumer behaviours,” says Aquarium’s Sales and Marketing Director, Mark Colonnese. “A technology solution that seamlessly aggregates new products sales with market and risk data to create meaningful MI, will drive focused marketing and improve customer up-take through better market education.”
What’s the point in the insurance industry getting it right? Colonnese explains: “2,000 smartphones and phablets are lost or stolen every day in the UK, worth upwards of £800,000. Yet over 75 per cent of these gadgets aren’t insured, so there’s a massive consumer awareness programme to be rolled out and a fantastic market opportunity for the tech-savvy and customer journey-savvy gadget insurers.”
Back in 2013 it was widely predicted that the tablet computer market, led by Apple’s iPad, would increase five-times over the coming five years. Fast-forward to 2016, however, and the market is now in deep decline. Instead, the phablet is the fastest selling mobile device category – currently expected to grow at an annual rate of 27 per cent. According to both Tech Insider and the ADI (Adobe Digital Index) demand for tablets has significantly waned and it is predicted that by 2019 three times as many phablets will be shipped as tablets.
The late Steve Jobs famously said in 2010 that Apple would not launch a 7-inch tablet because “we think the screen is too small to express the software. As a software driven company, we think about the software strategies first.” Phablets’ screen sizes are typically between 5 and 6.9 inches; Apple’s iPhone 6s Plus has a 5.5-inch screen and the Samsung Galaxy Note 4 has a 5.7-inch screen.
“Carrying both an expensive tablet and smartphone isn’t good for most people, and the tablet has soon morphed into being a stay-at-home piece of tech, rather than a truly mobile device. We’ve seen a shift to tablets being more suited to business rather than personal use,” added Colonnese.
Aquarium Software is rolling out an innovative platform specifically developed for the gadget insurance sector. Only 25 per cent of smartphones and phablets are currently covered by an insurance policy. Aquarium Software is currently being implemented by a number of key gadget insurers, and affinity partners in the UK, Europe, USA and Canada.