Mobile insurance gains attention as more consumers get smartphones and tablets
Mobile technology is beginning to play a major role in the lives of people all around the world. In Asia, smartphones and tablets are becoming exceedingly valuable, partly due to the services they provide to consumers as well as the type of information these devices are beginning to store. Several Asian markets have begun showing strong favor for high-end mobile devices, especially those designed to participate in mobile commerce. These devices are not only attractive to the average consumer, of course, and have become very alluring targets for theft and hackers. As such, the subject of mobile insurance has begun attracting more attention.
Mobile commerce contributing to the rise of mobile insurance
Insurers in Asia are beginning to offer mobile insurance coverage for various types of high-end smartphones and tablets. This insurance coverage is meant to provide consumers with some degree of protection in the event their mobile devices are stolen or exploited by hackers. Mobile insurance has begun to gain a significant amount of momentum due to the rise of mobile commerce, the trend that sees consumers paying for goods and services with their smartphones and tablets. Because of mobile commerce, smartphones and tablets have begun to traffic the valuable financial information of consumers, which makes these devices popular targets of theft.
Insurers find challenges in verifying claims
While mobile insurance may be gaining ground in Asian markets, insurers are faced with significant challenges in this field. One of these challenges involves verifying the claims coming from consumers. Insurers have had trouble in the past determining what type of damages they would provide coverage for. Basic mobile insurance coverage offers coverage for simple hardware defects, but does not generally cover the damages associated with data breach. This is partly due to the often difficult task of verifying the legitimacy of identity theft claims.
Pricing mobile insurance coverage proves difficult
Another issue that is proving problematic for insurers is pricing. Insurers such as AIG have begun to offer mobile insurance coverage in some degree, but determine appropriate prices for this coverage has proven difficult. This is partly due to the fact that mobile insurance is a relatively new sector of business, having only recently risen in popularity due to the inherent value of high-end mobile devices.