Gadget insurance take-up remains incredibly low, yet consumers are most risk-averse when it comes to wearables. Gadget insurers should target their efforts at the wearables segment in order to increase gadget insurance take-up.
Of those UK consumers who own a wearable device, 36% hold some form of insurance cover to protect it, according to our 2015 General Insurance Consumer Survey. This figure may seem pretty low, but take-up exceeds the 21%, 24%, and 31% who insure their e-readers, tablets, and smartphones respectively.
It is the last figure that may raise an eyebrow, given that the most well-known wearable on the market – Apple’s iWatch – depends on the user carrying an iPhone 5, 6, or 6S on their person for full functionality.
Compared to smartphone ownership’s near-ubiquitous levels, wearable ownership remains relatively low at just 12% of consumers. However, a further 17% of survey respondents expressed interest in buying a wearable device, and this is likely to expand if wearables do in fact turn out to be more than a fad.
At this point, gadget insurance specialists and home contents insurers (a significant majority of gadget cover is still held through home policies) may be wise to consider leading with marketing on wearable protection, or even offering combination deals with smartphone insurance.
By Stewart Mcewan, Head of Content, UK General Insurance