With a 1.3 billion population, India showcases a humongous market for smartphones. On an average, an Indian spends 1/3 of their total awake time on their phones. Driven by rapid digitization and expanding internet accessibility, smartphones have become a necessity and have already landed in the hands of 550 million Indians.

1. Solve. New December 2020
The $500 Mn potential
Indian Smartphone
Insurance market
But are the customers’
interests truly protected?

2. About Us
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3. Preface
India’s population today largely relies on smartphones to
complete daily chores or even financial services, shopping
and more. Both adults and children spend hours of their day
on their devices for an array of services including education,
curricular activities, entertainment, connecting with family and
friends and many more. From buying groceries to hailing a cab,
smartphones have made it all easy with a click of a button.
Smartphones today bring in a global opportunity for all kinds
of businesses to go digital and reach anywhere across the
world. With increasing household incomes especially in
smaller cities and towns as well as wider and easier internet
access, digitization is reaching across the length and breadth
of the country, and smartphones have shaped as a necessity
for more than half a billion population of India. The market
opportunity is so massive that multiple renowned OEMs are all
set to have their large chunk of production units established in
India. The existing trends promise a huge growth potential for
the smartphone market. With that comes growth potential for
related businesses as well.
Considering a variety of homegrown and international brands,
a smartphone ranges anywhere between Rs. ~5 thousand
to 1 lakh (few models cost even slightly higher too) in the
current times. But, with growth of smartphone ownership,
comes along multi-fold risks associated with it such as Screen
Damage, Theft, Accidental Damage and many others. Often, a
smartphone owner needs to send a major amount for phone
repair at least once in their lifetime making a hole in the pocket.
To protect the owner from being burdened by these extra
costs, Smartphone Insurance products have gained
popularity in the market over the last few years. The product
is offered as an optional add-on while purchasing a new
smartphone at the point of sale, or customers can buy
the same separately as well from the various Smartphone
Insurance providers.
While India’s smartphone market grows, the Smartphone
Insurance market is also set to grow with the same rigour.
People are much aware of the benefits of insurance products
and often opt for it while purchasing their choice of smartphone.
Driven by this great market potential, multiple players have
entered into this market in addition to the general insurance
players. However, not all of them come under the strict
purview of the regulator (IRDAI), which has led to multiple
incidents of customer complaints as well as few players
going out of business. Therefore, while there is a great need
for the product, it is becoming increasingly important for the
Regulator to intervene to ensure protection of consumers’
interest, which is a critical requirement for the sustainable
growth of this sector.
In this report, we have tried to decode these aspects for the
Indian Smartphone Insurance market. Hope, you find it an
insightful read. For any queries or feedback, please feel free to
reach out directly to me at anil@redseer.com
Anil Kumar
Founder & CEO
RedSeer
Term And Conditions
AGREE

4. Indian Smartphone Insurance Customer –
Not fully safe due to limited regulatory intervention!
Nitin Shah, an educated working professional residing in
an Indian Metro city, was extremely excited to buy his new
premium smartphone, after months of planned savings. Being
aware of financial damages that could come with the purchase
driven by certain unanticipated damages (screen break, liquid
damage, theft etc.), Nitin acted as a proactive customer and
purchased a Smartphone Insurance from the same outlet,
which was recommended by shop sales representative.
Thereafter, he stepped out of the store, with a big smile feeling
really excited and secure about his new purchase.
Just after 2 weeks, Nitin’s new smartphone became a victim
of his morning weekday rush. He stepped out of his car and
accidentally dropped his phone. He wished that the phone was
safe, but was really shattered to see his screen broken, as he
picked up the phone from the road. He was aware that screen
would be expensive, but still tried his luck with the service
center, just to confirm his hypothesis that he would need to
shell out around INR 15K for the new screen. In this entire
gloomy mindset, the memory of having purchased Smartphone
Insurance came as a ray of hope to avoid such a heavy out of
pocket financial outlay for mobile repair.
He quickly called the customer care number of the Smartphone
Insurance provider anticipating that all his fears will now be
taken care of. However, he failed to anticipate the months long
battle that laid ahead to get his claim settled. He was informed
by his Smartphone Insurance provider that the claim could not
be processed as it was a case of 'wilful negligence' despite the
product explicitly mentioning to cover shattered screens at the
time of purchase.
Furious Nitin opened up his policy document to track the name
of the insurance company, but to his dismay did not find any
insurance company’s name throughout the policy terms and
conditions.
After repeated attempts to uncover details of the insurer, he
was told by the service provider that the product he bought was
not a insurance plan. He then wrote to IRDAI but didn't get any
redressal as the provider was a 3rd Party Service Provider and
not a licensed insurance company.
He finally had to resort to legal resolution with all the required
proofs, and continues to battle his case in the overburdened
Indian consumer courts. Only time will tell, whether he would
actually be able to receive timely justice.
Nitin is not alone. Thousands of smartphone users break
or damage phones on a regular basis but do not know how
to tackle the problem and end up spending thousands only
because of these damages. This is more surprising as India has
been one of the largest markets globally for premium as well as
low-cost smartphones over the last few years.
Smartphones today have become a part and parcel of life
and filling this gap in the market is becoming a critical aspect,
looking at the growth of the domestic market. While certainly
there is an incessant need for a Smartphone Insurance product
in the country, the need is even bigger for it to be governed
strictly by the regulatory authorities, as it would ensure
protection of consumers’ interest, which in turn will ensure
sustainable growth of this high potential market.
In order to ensure certainty of cover, it is of paramount
importance that insurance products sold in the market are
underwritten by duly registered insurance companies,
solicited through licensed insurance intermediaries and
the products themselves are fully compliant with the
IRDAI’s product guidelines and regulations, as applicable.
From a policyholder perspective, regulatory intervention
will ensure that the promises made under the policy are
fulfilled and there are no hidden costs or leakages or
delays in claim payments. Selling insurance products
which fall foul of IRDAI’s regulations and directions is a
violation of applicable law.
~ Partner, Shardul Amarchand Mangaldas & Co
Legal Speaks
I bought Smartphone Insurance along with the my
new Samsung Galaxy Smartphone from a retail outlet
Last December. At the time I didn't know that the seller of
"damage insurance" wasn't actually a registered insurer.
It was very misleading as I only got to know about this
when my claim was rejected and I had to go through a lot
of red tape to get it resolved. I will always recommend
everyone to only buy Smartphone Insurance sold directly
by Insurance Companies.
~ Software Industry Professional,
Age 25, Bangalore
Customer Speaks

5. Indian Smartphone Insurance
Market holds potential to reach
$500 Mn by FY 25, driven by
number of demand and supply
side drivers: driven by multiple
favorable factors.
• Demand side drivers include:
» >900 Smartphone users are expected in
India by FY 25.
» This rise in Smartphone ownership will
lead to ~2x rise in annual smartphone
shipments (>300 Mn annual shipments
expected by FY 25).
» >70% of smartphone owners realise the
need of having a Smartphone Insurance
cover.
» >50% of smartphone owners are willing
to purchase a Smartphone Insurance
cover.
• Supply side drivers include:
» Large number of players have entered
the market (Licensed (Full Stack)
Insurers, 3rd Party Service Providers,
OEMs, LFRs, eCommerce players and
NBFCs).
» These players are pushing variety of
offerings at different price points.
» Smartphone market is moving towards
organized retail channels, leading to
higher attach rates for Smartphone
Insurance product.
1
Due to the growing scale of
Smartphone Insurance Market,
there is a greater need for a better
Regulatory framework/ controls
to solve for consumer protection.
Regulatory intervention will
ensure clear support for consumer
interest through:
• Prudent risk management – financial
provisioning to ensure adequate handling of
customer claims, as well as sustainability of
business operations.
• Transparency in product pricing
• End to end claim support to the customer
• Structured grievance handling mechanism
2

6. Driven by the $500 Mn Indian Smartphone
Insurance potential opportunity by FY 25, multiple
businesses have emerged in the bid to capture the
growing market.
1

7. Indian smartphone users reached ~560 Mn at a run rate of ~78 Mn new users per year in the last 4
years, and is expected to surpass 900 Mn by FY 25.
With a 1.3 billion population, India showcases a humongous
market for smartphones. On an average, an Indian spends
1/3 of their total awake time on their phones. Driven by rapid
digitization and expanding internet accessibility, smartphones
have become a necessity and have already landed in the
hands of 550 million Indians.
The user base is expected to reach close to 1 Billion
population at a run rate of ~78 million new users per year by
the end of 2025. This is expected to be driven by changing
industry dynamics and introduction of affordable low-range
smartphones by multiple players in the market. Jio is taking
internet affordability to a new level by providing the cheapest
internet services in the world.
Over the past few years, smartphone shipments have been
on the rise, with low-range smartphone brands leading the
pack. This invites multiple OEMs to attempt to build their
share in India’s low-medium range smartphone market. Given
the overall development of the nation, the average household
incomes are increasing across tier 1 and tier 2 cities providing
tremendous opportunity to buy new smartphones or replace
old feature phones to smartphones in each category range.
Digital Users
# of smartphone users
Smartphone users in millionXx
Key Drivers
of Adoption
0
150
300
450
600
750
900
1050
FY 2010FY 2000 FY 2020FY 2016FY 2014 FY 2020F
Desktop Internet
Internet enabled
2G phones
Low cost 3G
enabled Smartphones
Jio-Affordable
4G LTE
939
557
242
44
20
~400 Mn new
users
in 10 years
~400M
nnew
users
in5years
Same net addition in the
smartphone base in the next 5
years, as acquired in the last
10 years.
Digital Users
# of internet users (Mn); FY 2000 – FY 2025F
Source(s): (1) Expert Interactions, (2) RedSeer IP, (3) Redseer Analysis
Smartphone Insurance
7

8. The rise in smartphone ownership will translate into a 15% CAGR for new smartphone shipments to reach
~300 Mn annually by FY 25 – a sizeable addressable market opportunity for Smartphone Insurance.
Growth in Smartphone Market (Shipments)
Mn Shipments, FY 15 – FY 25F
FY 15 FY 20 FY 25F
100 Mn
153 Mn+9%
+14%
300 Mn
Highlights
Top selling Brands (FY20 by volume)
~11%~20% ~16% ~11%~30%
Smartphone shipments by price point (FY20 by volume)
Multiple parameters to lead to higher growth in next 5 years:
• Availability of affordable smartphones
• Increase in average household income
• Lowering of replacement cycles
Less than $200 ~70% $200 – $300 ~23% $300 – $500 ~3% More than $500 ~4%
Xiaomi, with its 20+ smartphone models in low to medium
category has shipped over 100+ Mn units in the last five years
and is a clear winner in the last FY capturing almost 30% of the
entire smartphone market with shipment of 45Mn Units.
Source(s): (1) Expert Interactions, (2) RedSeer IP, (3) Secondary Research
Smartphone Insurance
8

9. Moreover, there is an increase in need realization and willingness to pay for Smartphone Insurance
products, basis our detailed survey.
As the ownership of smartphones increases, the risks
associated with extra costs due to wear and tear increases
too. Smartphones being fragile and vulnerable to accidental
falls run the risk of bearing a substantial amount of extra cost
over and above the phone cost at least once in its lifetime. This
is where the Smartphone Insurance comes to the rescue.
We conducted various consumer surveys to understand 2
key aspects:
• Do smartphone buyers in India feel the need to insure their
smartphones?
• If they do, are they willing to pay an extra amount to protect
their smartphones, yearly?
The survey clearly reflected high need realization among
Indians with 72% agreeing that there is need for Smartphone
Insurance. Most of the customers pointed out screen damage
and smartphone theft are their major motivators when buying
insurance for their phone.
Moreover, >50% of the surveyed respondents are willing to
pay for Smartphone Insurance covers, and upto $40 a year.
High need realization and willingness to pay are certainly
positive signs of increase in adoption of this product, and
thereby growth of the overall market.
(Consumer Surveys conducted as on 9th August 2020)
Need Realisation of Smartphone Insurance
How strongly do you feel the need of insuring your mobile phone?
Manufacturing Defect
Liquid Damage
Lost Unintentionally
Screen Damage 80%
71%
66%
60%
58%Physical Damage
Theft
Software Issue
Warranty
related
N = 680 Significance level = 95%
Product offering preferences
Rank the primary motivation (top 3 factors) to avail smartphone
insurance?
N = 360 Significance level = 95%
73%
19%
8% 100%Weak
Neutral
Strong
Need Realisation
Damage
Insurance
related
33%
30%
Willingness to pay for Smartphone Insurance
Are you willing to insure your phone upon purchase?
N = 680 Significance level = 95%
Willingness to pay
How much are you willing to pay for insuring your phone?
N = 360 Significance level = 95%
No
Yes47% 53%
8%
11%
21%
42%
18%Less than $7
More than $40
$ 20–$40
$ 15–$20
$ 7–$15
~$17 (weighted average)
Source(s): (1) Customer Surveys, (2) Redseer Analysis
Smartphone Insurance
9

10. Therefore, multiple business models have entered the market.
The Smartphone Insurance market has witnessed entry of
multiple players providing a wide variety of offerings to the
customer. These players include:
• Primary Service providers who include Licensed (Full Stack)
Insurers or 3rd Party Service Providers.
• Other point of sale providers who include smartphone
OEMs, eCommerce portals, LFRs and NBFCs. These
providers mostly sell insurance products from Primary
Service providers as highlighted above. All these channels
are supported by partnership at the backend with a service
provider who takes care of the complete customer journey
associated with Smartphone Insurance product. OEMs
such as Xiaomi, Apple, Samsung and OnePlus have their
own flagship product for Smartphone Insurance whereas
online marketplaces such as Amazon lists out multiple
service providers to let the customer decide while making
the purchase.
Licensed (Full Stack) Insurer
3rdPartyServiceProvider
NB
FC
LFR
eCommerece
OE
M
Supply – Types of Providers in the Market
Primary Service
Providers
Primary Point of
Sales
Note(s): (1) While Licensed (Full Stack) Insurers can handle customers across their journey; other players as mentioned above are also
involved in the mobile insurance market who offer/ facilitate sale of damage insurance products, often enabled by insurers at the back end
(2) LFR, OEM and E-comm are the key sales channels (3) Selected player logos have been used here. The list is not exhaustive
Source(s): (1) Expert Interactions, (2) RedSeer IP, (3) Secondary Research
Smartphone Insurance
10

11. Smartphones in the country today are being sold through 3
key channels:
• Online i.e. customers purchasing the smartphone through
eCommerce portals such as Amazon, Flipkart and others
• LFRs i.e. Large Format Retail stores such as Tata Croma,
Reliance Digital and others
• Unorganized i.e. Mom-and-Pop mobile stores in the local /
high street markets in the country
Overtime, share of online sales of smartphone has been on
the rise and is expected to witness continued growth, driven
by multiple factors:
• Convenience of viewing and analyzing multiple brands and
models anytime and anywhere via internet
• Free of cost home delivery of product with ETA as fast as
1-day post order placement
• Range of offers from Banks, eCommerce platform etc. to
opt from providing additional benefits to the customer
While Smartphone Insurance is being sold across the
smartphone point of sales, the attach rates with the online
channel have really picked up in the past few years, and the
growth is likely to continue. We expect attach rates to grow
from ~2.5% with the online channel today to ~5% in the next
5 years. In addition, attach rates across other point of sales
are also expected to increase significantly.
These players provide multiple kinds of Smartphone Insurance products through variety of channels to
ensure the required reach.
Attachment rates by Channel
(Smartphone Insurance, India)
Smartphone Sales by Channel
(India)
% of units sold, FY 2015 – FY 2025F % of $ sales, FY 2015 – FY 2025F
5.2%
2.0%
0.5%
20202015
2.5%
2025F
1.0%
2.9%
6.5%
4.7%
5.0%
54%
29%
18%
18%
FY 15 FY 20 FY 25F
21%
44%
50%
22%
24%
LFRs
Online
Unorganized
Online LFRs Unorganised
Smartphone Insurance Offerings
Screen Damage Cover Liquid Damage Cover Accidental Damage Cover Phone Theft Cover
Source(s): (1) Expert Interviews, (2) Redseer Analysis
Smartphone Insurance
11

12. 10%
15%
20%
20%
37%
35%
65%
225
Offline
Stores
Online
Stores
Policy Purchase
by Channel
Large format
offline stores
Exclusive brand
outlets
Small offline
stores
Marketplace
Through third
party websites
No
95%
5%
Yes
(Consumer Surveys conducted as on 9th August 2020)
N = 225 Significance level = 95% N = 360 Significance level = 95%
Channel of Purchase
Where did you buy your Smartphone Insurance policy?
Brand preference
Do you have a preferred type of smartphone
insurance provider?
These point of sales play a critical role in governing customer’s purchase decision, as the customer
does not have any brand preference and predominantly relies on the point of sale provider for
recommendation and purchase of the Smartphone Insurance product.
I wanted to claim my policy when I accidentally
dropped my phone. I called the hotline number
mentioned on the website, but I was kept on long holds
and my claim was denied without justification
~ Amazon Review
I don’t know much about phone insurance, but I
drop my phone often. I was suggested by the retailer
that it’s better to have insurance with the new phone.
So, I purchased the plan
~ Recent policy buyer
My service provider is charging premium even
after cancelling my policy plan. Due to a standing
instruction on the app, which I wasn’t made aware off,
money gets deducted without my knowledge.
~ Google Play Review
Customer Speaks
Source(s): (1) Customer Surveys, (2) RedSeer Analysis
Smartphone Insurance
12

13. Therefore, driven by all the key demand and supply side drivers, the Indian Smartphone Insurance
market is expected to witness a ~30% CAGR to reach ~$500 Mn by FY 25, with adoption expected
across smartphone price tiers.
With increasing smartphone users and high need realization
for damage insurance, the demand for it is set to rise
massively. This is complemented by multiple new players
entering the market providing a wide variety of options for the
customer.
Easy accessibility to Smartphone Insurance products at
the time of smartphone purchase is leading to exponential
increase in insured customers. Demand and Supply drivers of
the Smartphone Insurance industry show promising growth
going forward.
The $140Mn Smartphone Insurance market in FY 2020 had
two major influencing factors:
• Price of Smartphone
• Channel of Purchase
Price of one year of Smartphone Insurance premium spans
between 2-3% of the total phone cost. Average price of a
Smartphone Insurance in India ranges from $25–$30 per
year. As the price of smartphone increases, the associated
premium also rises. Close to 1/3rd (~$55Mn) of market value
was generated only via mid-range smartphone Insurance
purchases. The channel of sales plays an essential part
as well in market’s growth. 56% of Smartphone Insurance
products were sold via Large Format Retail stores only in the
last financial year. Therefore, many service providers deploy
their own sales personnel at these stores to explain product
benefits to the customer in person, at the time of smartphone
purchase leading to a higher chance of conversion.
With increased adoption across smartphone price tiers and
expected increase in attach rates across the smartphone
point of sales, this market is expected to increase by ~3.5x to
reach $500 Mn by FY 25.
Demand
Drivers
Supply
Drivers
~557 Mn people in India have access
to a smartphone by 2020 which
would go up to ~939 Mn by 2025.
Smartphone market is set to grow
with 153Mn shipments in 2020 to
300 Mn shipments in 2025.
High need realisation (~73%) and
willingness to purchase (~53%)
Smartphone Insurance plans.
Increasing number of players and
competition in the market.
Wide variety of offerings at different
price points.
Shift to Organized Retail channels
leading to higher attach rates from
the channel, with customers relying
on retailers for purchase decisions.
Source(s): (1) Customer Surveys (N = 680), (2) Redseer Analysis
Smartphone Insurance
13

14. 30% 37%
40%
36%
17%
16%
14%
12%
36%
10%
38%
+ 36%
+29%
Attach
rate
1% 3.2% 5.2%
2015
$30 Mn
2020
$140 Mn
2025F
$500 Mn
13%
More than $500
$300 – $500
$ 200 – $300
Less than $200
Total Mobile Insurance Market Size: $140 Mn
11%
37%
17%
35%
2%
43%
14%15%
30%
40%
23%
34% More than $500
$300 – $500
$200 – $300
Less than $200
UnorganisedLFRsOnline
$36 Mn $79 Mn $25 Mn
USD Mn, FY 2020
Mobile Insurance Market by Smartphone Price Point & Channel (India)
USD Mn, FY 2020
Forecasted Growth in Mobile Insurance Market (By Price Point, India)
Source(s): (1) Expert Interactions, (2) Redseer Analysis
Smartphone Insurance
14

15. This market is driven by broadly 2 categories of players whom we have also referred to as Primary
Service providers – Licensed (Full Stack) Insurers and 3rd Party Service Providers. These players also
enable other point of sale providers who offer the product.
The Licensed (Full Stack) Insurance companies such as Acko
and Go Digit are IRDAI registered insurance companies.
3rd Party Service Providers such as Servify, OneAssist and
OnsiteGo are service facilitation companies that are not
registered with IRDAI.
Note(s): Selected player logos have been used here. The list is not exhaustive.
Source(s): Redseer Analysis
Parameters Licensed (Full Stack) Insurers 3rd Party Service Providers
Definition
Licensed (Full Stack) Insurers
are IRDAI registered Smartphone
Insurance providers who offer
complete damage protection to
customer.
3rdParty Service Provider are
non-IRDAI registered Smartphone
Insurance sellers. These are not
Insurers and are rather service
providers.
Features
IRDAI Licensed
Full Stack (end to
end delivery)
Key Players
Channels
Online retail
channel ✓ ✓
Offline Retail
(LFRs, EBOs,
and unorganised
retail)
Products
Offered
Screen Damage
Liquid Damage
Accidental
Damage
Phone Theft
Extended
Warranty
Smartphone Insurance
15

16. Due to the growing scale of Smartphone
Insurance Market, there is a greater need for
a better Regulatory framework/ controls to
solve for consumer protection.
2

17. We evaluated the 2 Primary Service provider business models (Licensed (Full Stack) Insurers vs. 3rd
Party Service Provider) in depth on 4 key parameters, to understand how they safeguard consumers’
interest, basis which it appears that Full Stack models are better positioned to protect consumer’s
interest in the category, as they are governed by regulations.
We identified 4 key parameters for protection of consumers interest, and thereafter benchmarked the 2 key
business models on those parameters.
Source(s): Redseer Analysis
Prudent Risk Management –
Financial provisioning
• Provisioning for rise in claims (Internal /
Reinsurer)
• Sustainability of business model
Licensed (Full Stack) Insurers product price is
~1/3rd to 1/5th of 3rd Party Service Provider’s
across mobile phone SKUs – Insurance of similar
priced bikes costs ~50% lower vs. Smartphone
Insurance.
Transparency in Product Pricing
• Base price of insurance product
• Build up of costs
• Final price to the customer
• No. of intermediaries involved
Licensed (Full Stack) Insurers controls complete
customer journey, from customer onboarding to
complete claim handling and settlement - NPS of
53% vs. 35% of 3rd Party Service Provider.
IRDAI governs issues related to customer grievances
of Licensed (Full Stack) Insurers while for products
sold by 3rd Party Service Providers – customers
have to rely on overburdened consumer courts.
End to End Claims Management
• Seller’s control over claim processing
• Final approval authority
Structured Grievance Redressal Mechanism
• Dedicated entity for grievance redressal
• No. of steps involved for the customer
Licensed (Full Stack) Insurers maintain adequate
financial provisioning (In house + Reinsurer as
apt) as mandated by IRDAI, which enables timely
settlement of customer claims.
Parameter 1
Parameter 3
Parameter 2
Parameter 4
Smartphone Insurance
17

18. Parameter 1: Prudent Risk Management – Financial Provisioning
Licensed (Full Stack) Insurers have to mandatorily adhere to IRDAI guidelines for financial provisioning,
while 3rd Party Service Providers do not have any such obligations, which led to exit of certain players
from the market.
Licensed (Full Stack) Insurers have to adhere to IRDAI
regulations which includes a provisioning criteria of INR Rs.
100 Crores (~$ 13 MN), or 30% of the premium collected in
a year, whichever is higher. In addition, they are mandated
to report their financial provision status on a quarterly basis,
as they have to undergo audits every quarter, which are
conducted by IRDAI.
As 3rd Party Service Providers are not subject to these
provisioning requirements, it raises two critical questions - (i)
What happens if any of these companies were to go down?.
(ii) Who is really protecting the customers’ interests here?. As
several players have raised substantial external capital without
the necessary regulatory oversight, it puts both investor capital
and consumer interests at risk.
Source(s): Redseer Analysis
Parameter Licensed (Full Stack) Insurers 3rd Party Service Provider
Solvency Capital
Provisioning
Maintain an amount of INR 100 Crore + 30% of
premium collected
No external obligation to maintain a
minimum provision
Regulatory Financial &
Grievance Disclosures
IRDAI requires Insurers to submit all financial &
customer grievance details every month. This
ensures better governance and also mandates
Insurers to follow the Regulatory framework for
prudent risk management.
No disclosures required
Regulatory Audits
IRDAI conducts annual audits to further ensure
that consumer interests are protected and
Insurers follow the prescribed norms of capital
management
Not subject to audits by IRDAI (regulator)
Claims Decision Authorized by IRDAI to take claims decision
Has to rely on an authorized licensed
insurer or is at risk of Regulatory censure if
claim decisions are taken independently
Risk Management
IRDAI has stringent guidelines around investment
instruments for Insurers. This is to ensure that
Insurers are protected from market volatility that
may impact the ability to settle claims.
No guidelines on prudent risk
management measures. Not subject to
Regulatory framework
Reinsurance
Insurers are required to park some part of risk
premium with Reinsurance Companies. This
further helps in shielding insurers from outlier
financial events and improves risk management
to ensure better protection of consumer interests
Do not have any access to Reinsurers
since only licensed insurers can work with
reinsurers
Any service assuming a potential future liability needs an adequate provisioning. IRDAI makes sure that a Licensed (Full Stack) Insurer at any point
in its business has at least 100 Crores and an additional 30% of total premium value set aside, to safeguard policy holder’s interest. IRDAI also takes
the operational costs into account and separates it out from the total provisioned amount. No such regulations are there 3rd Party Service Providers
in the country, which means that they don’t have to create any financial provisioning + there are no checks / balances in place to conduct one to one
mapping for every policy sold by a 3rd Party Service Provider with the presence of an IRDAI approved insurer at the backend. Therefore, consumers
purchasing the product from 3rd Party Service Providers are at high risk!
Smartphone Insurance
18

19. However, no such requirement exists for 3rd Party Service
Providers. Limited provisioning coupled with rising customer
complaints, and fallout with backend insurers has resulted in
shutting down a few players in the past e.g. AppsDaily. The
player had to shut down in 2017, driven by unresolved claims
pile up due to poor financial provisioning and other business
model lapses. The same is elaborated in detail below:
Operational
Till (Year)
Cause of Downfall Value Proposition Sales Channel
2015 • Poor Company
Management
• Cases registered by
customers
• Dissolution of partnership
with backing Insurer due
to multiple consumer
complaint
• Online to Offline Model
based mobile insurance
plans
• Accidental Damage Cover
• Network Security Software
for Mobile
• Free Mobile Apps
• Large Format Retail
• OEM Stores
• Unorganized Offline Stores
As soon as complaints started to pile up, the back-end insurer
cuts ties with the 3rd
Party Service Provider which left them no
option to repay the due claim amounts to its customers. This
was because the 3rd Party Service Provider AppsDaily was not
a regulatory approved insurance company, and therefore did
not have adequate financial provisioning to handle the risks
associated with liabilities.
They had no choice but to file bankruptcy to resolve the
problem. This example re-iterates the fact that it is extremely
risky and unwarranted for a non-insurance firm to sell
insurance products to customers of which they themselves
have no control of.
This brings out a clear ask to the Indian regulatory board to
regulate these firms in order to avoid such fraudulence and bar
them from taking the interest of policy holders in their hands.
Smartphone Insurance
19

20. Pivots to mobile protection from mobile insurance but
fails with its O2O strategy due to the growth of e-commerce
marketplaces.
2016
Claims to have 3 million paid customers across 700 cities in
7,000 mobile stores.
2014
Partnered with New India Assurance to sell its mobile
insurance policies.
2010
With unresolved claims piled up, short on capital to run its
daily operations and a very poor management, AppsDaily,
which once claimed the largest retail network in India shuts
shop as they file for bankruptcy.
2017
Terminates partnership with New India Assurance in
November 2015.
AppsDaily refuses to increase the premium when pressurised
by Insurance majors.
2015
More than 1 million utility and security apps sold
across 150 cities in the country.
2013
Founded in 2008, AppsDaily launched with an app and
were one of the first to sell the app through O2O strategy.
2008
AppsDaily Journey
Source(s): (1) RedSeer IP, (2) The KEN
Smartphone Insurance
20

21. Globally, there is a direct correlation of the Smartphone Insurance market growth with the maturity of
Regulations – IRDAI intervention is imperative!
Global Comparison – Smartphone /
Insurance Penetration vs Maturity of Regulations
2019E
Indicative
Low
Maturity
High
Maturity
0
Low Penetration High Penetration
100
Regulations
Maturity1
Smartphone Insurance Penetration
(% of new smartphones bought insured)
India: 3.5%
UK: 30%
Canada: 65%
USA: 70%
More regulation will give
greater confidence for
insurance companies to
look into this space.
Smartphone insurance
penetration is closely linked
to maturity of regulations
Globally, Smartphone Insurance has matured immensely
which has been the primary growth driver for the market.
When customers are presented with transparency as per
the regulatory instructions, it greatly helps them in building
confidence on the provider and the product. This leads to
growth in the overall market inviting more customers to
buy Smartphone Insurance and adds more players to the
ecosystem.
Note(s): (1) Refers to maturity of regulations including explicit policies for Smartphone Insurance, Framework for code of conduct,
guidelines for each type on insurance seller, etc.
Source(s): (1) RedSeer Analysis, (2) Secondary Research
Smartphone Insurance
21

22. Parameter 2 – Transparency in Product Pricing
Lack of regulatory oversight and multiple intermediaries’ presence with 3rd Party providers leads to an
inflation of ~3x– 5x in the landing price to the customer.
As per our analysis, the unit economics of the two models have
a massive variance. If we consider cost of
product to be fixed to 2-3% of smartphone cost, the total
product cost would then include Product Cost, Operational
Cost and other brand/channel margins.
To understand the difference, we analyzed five different retail
channels/players for the same smartphone SKUs.
The observation turns out to be alarming as we found 3rd
Party product cost to be as much as 3 to 5 times more as
compared to Licensed (Full Stack) Insurers product cost.
Smartphone Insurance – Pricing Comparison –Smartphone price ranging Rs.8500/- (Redmi 8A– Accidental and
Liquid Damage Cover)
Indicative Pricing Build-up
Type of Player
Licensed
(Full
Stack)
Insurer
OEM
3rd Party
Service
Provider
3rd Party
Service
Provider
NBFC LFR
Comments
Player
Channel
Price of Insurance
Product
₹ 270 ₹ 270 ₹ 270 ₹ 270 ₹ 270 ₹ 270 ~2.3% of the mobile cost
Other costs:
Operational costs,
Brand margins,
channel margins etc.
₹ 179
₹ 529
₹ 719
₹ 1,177
₹ 1,409
Massive build
up of costs
amidst lack of
transparency
among third
party sellers.
₹ 79
Final Price to
Customer
₹ 349 ₹ 449 ₹ 799 ₹ 989 ₹ 1447 ₹ 1679
Source(s): (1) RedSeer IP, (2) Secondary Research, (3) Expert Interviews
Smartphone Insurance
22

23. Smartphone Insurance – Pricing Comparison – Smartphone price ranging Rs. 70000/- (Samsung Galaxy S10 –
Accidental and Liquid Damage Cover
Indicative Pricing Build-up
Here’s another example showcasing similar price inflation of 2x to 3.5x visible at 3rd Party Service Provider’s end for a premium
range smartphone.
Type of Player
Licensed
(Full
Stack)
Insurer
Licensed
(Full
Stack)
Insurer
OEM
3rd Party
Service
Provider
3rd Party
Service
Provider
NBFC LFR
Comments
Player
Channel
Price of Insurance
Product
₹ 1750 ₹ 1750 ₹ 1750 ₹ 1750 ₹ 1750 ₹ 1750 ₹ 1750
~2.3% of the mobile
cost
Other costs:
Operational costs,
Brand margins,
channel margins
etc.
Massive build
up of costs
amidst lack of
transparency
among third
party sellers.
₹ 249
₹ 648
₹ 2,249
₹ 4,149 ₹ 4,199 ₹ 4,249
₹ 5,149
Final Price to
Customer
₹ 1999 ₹ 2398 ₹ 3999 ₹ 5899 ₹ 5849 ₹ 5999 ₹ 6899
Note(s): (1) Go Digit products are currently unavailable. We have
considered 2X price for Go Digit product for uniformity as Go
Digit sells 6-month insurance
Source(s): (1) RedSeer IP, (2) Secondary Research, (3) Expert
Interviews
Smartphone Insurance
23

24. Both categories includes intermediaries i.e. Channel margins
indicating relatively higher pricing build up for the end
customer for smartphone insurance.
Notably, 2 wheeler insurance is regulated which means, both
premium and commission margins for intermediaries are
regulated by IRDAI. Similar structure is required for mobile
insurance.
2-Wheeler Insurance Stats Mobile Insurance Stats
~20 Million Total units sold (New) 150 Million
100%
Percentage Insured of
Total units sold
11%
~2%
Premium per Year
as % of unit cost
~6-10% for 3rd Party
Service Providers
In a market where 2 Wheelers cost almost as premium smartphones, insurance customers for 2W have
to pay just ~2% of the unit cost vs. 6-10% for 3rd Party Service Providers for Smartphone Insurance.
Note(s): (1) Includes only new bikes sold in the year
Source(s): (1) RedSeer IP, (2) Secondary Research, (3)
Expert Interviews
Smartphone Insurance
24

25. Parameter 3 – End to end Claims Management
3rd Party Service Providers’ T&Cs don’t disclose the actual insurer, providing no transparency to
customer on claim ownership. However, the same players operating in the global markets do mention
the insurer clearly in their T&Cs.
At a time when Indian consumers’ level of awareness on
Smartphone Insurance is still in nascent stages and is
developing, 3rd Party Service Providers in the market do
not consider this important to disclose the name of the
backend insurer leaving the customers a bit in the dark. Often,
customers do not know that Smartphone Insurance provider
has a mandate to be approved by the Indian legal authority
IRDAI whereas their awareness about life or general insurance
is comparatively higher. This at times leads to defrauded
customer and a pile of unresolved claims, driving really low
customer satisfaction.
Source(s): (1) RedSeer IP, (2) Secondary Research
2. OneAssist does not state any insurer name/details in its terms and conditions:
1. Onsitego’s terms and conditions does not mention insurer’s name or the reference of an insurer at the backend:
Smartphone Insurance
25

26. Source(s): (1) RedSeer IP, (2) Secondary Research
3. Servify refers to its backend insurance firm as “claim processor” in its terms and conditions without mentioning the name
of IRDAI registered Insurer they work with:
4. Acko mentions its insurance arm clearly in its terms and conditions as Acko General Insurance Limited:
5. Go Digit is explicit in its terms and conditions document clearly stating out the role of regulator – IRDAI:
As observed above, 3rd Party Service Providers do not mention
details of the backing insurer, if there exists one, which leaves
minimal room for customers for grievance redressal. Licensed
(Full Stack) Insurers such as Acko and Go Digit clearly mention
the name of its Insurance arm to provide clarity to its customers
and have a defined Grievance Redressal mechanism approved
by IRDAI.
The same 3rd Party Service Providers operating in mature
markets do mention the backend insurer clearly in their T&Cs,
but the same is not mentioned in India.
To cite an example, 3rd Party Service Provider Servify which
caters to both the US and India market, discloses its insurer
in the US but not in India. This difference clearly indicates
the gap that both the markets face today. Therefore,
it raises a valid question - Isn’t it the 3rd Party Service
Provider Smartphone Insurance customer’s right to know
the name of the insurance company (that is backing the
program) in India too?
Smartphone Insurance
26

27. Source(s): Redseer Analysis
3rd Party Service Provider Servify sells its products in India as well as in the US. While in US, it mentions the
nature of contractual service agreement and name of the back-end service provider very clearly in its terms and
conditions (screenshot below), in India it puts out vaguely written terms. The insurer is synonymously called
claims processor in India’s Terms and Conditions providing no details on the actual IRDAI registered insurance
organization. This clearly shows the difference in regulatory compliances in the US and in India.
No details of insurer mentioned on the website. The same is
just referred to as claims processor.
Specific name of Insurer mentioned clearly on the
website.
Q: How important it is for all insurance products being sold in the market to be fully regulatory compliant?
In order to ensure certainty of cover, it is of paramount importance that insurance products sold in the market are
underwritten by duly registered insurance companies, solicited through licensed insurance intermediaries and the products
themselves are fully compliant with the IRDAI’s product guidelines and regulations, as applicable. From a policyholder
perspective, regulatory intervention will ensure that the promises made under the policy are fulfilled and there are no
hidden costs or leakages or delays in claim payments. Selling insurance products which fall foul of IRDAI’s regulations and
directions is a violation of applicable law.
~ Partner, Shardul Amarchand Mangaldas & Co
Legal Speaks
Smartphone Insurance
27

28. Parameter 4 – Structured Grievance Redressal Mechanism
While customers of IRDAI approved insurance providers can register their grievances with IRDAI for
resolution, customers for 3rd Party Service Providers don’t have the same platform, and have to rely on
overburdened consumer courts, which leads to lower customer satisfaction.
The following illustration represents how both models handle
the grievance redressal process. As mentioned, Customers
of 3rd Party Service Providers are left with no choice but
to rely on the overburdened generic forums or Consumer
Courts.
Source(s): Redseer Analysis
Customer faces issue and raised
service/claim request
Licensed (Full Stack) Insurer3rd
Party Service Provider
Channel
Customer reaches out to
retailer, they redirect customer
to service provider
Service Provider
Service provider assesses
claim documents and damages
in phone through the app
Channel
Customer reaches out to
retailer, they redirect customer
to service provider
Insurer
Customer connects with
insurer. Insurer analyses the
issue and makes the decision
for claim settlement
IRDAI
In case of any grievance,
customer goes to the Indian
regulatory authority IRDAI for
Grievance Redressal
Insurer (if available)
Service Provider sends the
case for back-end Insurance
company’s approval
Consumer Court
In case of any grievance,
customer goes to an overburdened
generic consumer court
Smartphone Insurance
28

29. Source(s): (1) Amazon Customer Sentiment Analysis, (2) Customer Surveys, (3) RedSeer Analysis
(Consumer Surveys conducted as on 9th August 2020)
N = 360 Significance level = 95%
Would you trust the product more if the
seller is same as insurer?
14%
25%
60%
No
Not sure
Yes
Industry net sentiment by parameter Net sentiment by type of player Trust factor is high towards
Licensed (Full Stack) Insurers
N = 1877, Based on Amazon India reviews
0% 25% 50% 75% 100%-25%-50%-75%-100%
Negative
sentiment
drivers
Positive
sentiment
driver
Overall Sentiment
Customer
Support
11%
Pricing -16%
Ease of Use 55%
Parameter Net Sentiment
13%Licensed (Full Stack) Insurers
5%3rd Party Service Provider
(Consumer Surveys conducted as on 9th August 2020)
On the other hand, Licensed (Full Stack) Insurers have a
well-defined process with a complete regulatory oversight
to protect customer’s interest. In case of things going out of
hand, customer will be protected by IRDAI as the regulator
can take action on the service provider as per customer’s
complaint.
Driven by the same, Varied customer experience has been
reported with customers showing increased satisfaction
from Licensed (Full Stack) Insurers vs. 3rd Party Service
Providers.
The same came out clearly through our detailed analysis of
~2k Amazon reviews on the Smartphone Insurance products
sold on the platform.
For the Licensed Insurers – clearly, the decision on the Claim
is taken by the Insurer themselves.
For the 3rd Party Service Providers: There are two models
they follow:
a) Insurer takes the decision: In the absence of name of Insurer
(as is evident in the TnC of the 3rd Party Service Providers),
consumer has no clue on who should she approach in case
of any grievance. The insurer has limited visibility on the
case & this makes the process entirely inefficient. Also, this
adds to the time for claim settlement
b) 3rd Party Service Provider takes the decision on the Claim:
This is a questionable business practice since they are
seemingly operating in the capacity of the Insurer without
being duly licensed to do so.
In both the cases cited above, the consumer stands to lose.
Smartphone Insurance
29

30. Similar result is found as an outcome of our detailed customer surveys where customers have expressed higher satisfaction for
Licensed (Full Stack) Insurers by giving them much higher NPS as compared to 3rd Party Service Providers.
All the above observations strengthen the hypothesis that 3rd Party Service Providers lack assurance of prudent grievance
resolution mechanism and fail to satisfy customers.
Overall customer satisfaction is high with insurers.. Indicated by a positive NPS of registration process
NPS Score
35%
NPS - Insurer NPS - 3rd Party NPS - Insurer NPS - 3rd Party
-6%
100% 100% 100%100%
52%
44%
NPS Score
41%
53%Positive
Neutral
Negative
Positive
Neutral
Negative
59%
44%
47%
-9% -6% -4%
53% 47% 40%35%
(Consumer Surveys conducted as on 9th August 2020)
NPS for Insurance players NPS of Registration process by type of players
How likely are you to recommend your Smartphone Insurance/
protection product to others?
How do you rate the registration experience?
N = 225 Significance level = 95% N = 225 Significance level = 95%
Source(s): (1) Customer Surveys, (2) RedSeer Analysis
I bought my insurance plan online and it was a
seamless experience. Phone was to be given as a
present and wished to get the same insured.
~ Google Play Review
Customer Support was very helpful and made my
policy claim process quick, simple and easy. It was a
very good service.
~ Smartphone Insurance Customer
User Speaks
Smartphone Insurance
30

31. Regulators Channel Partners / OEMs Investors Customers
• Need to regulate
commissions to increase
price transparency and
avoid price gauging by
intermediaries.
• Safeguarding consumer’s
interest ascertaining who
qualifies as a player in the
market and establish clear
accountability.
• Defining rules for 3rd
Party Service Providers
by defining their role as
facilitators (similar to
health and other non-life
insurance), who do not play
a part with underwriting
risks, to maintain prudent
market conditions.
• Substantial opportunity
exists in the market,
working with Licensed
(Full Stack) Insurers can
help accelerate customer
loyalty.
• Reputation risk at stake
if one continues to
operate with unlicensed,
unregulated (non-IRDAI
registered) players.
• Decrease likelihood
of customer backlash
as awareness on risks
associated with 3rd Party
players advances, best to
join hands with Licensed
(Full Stack) Insurers.
• The report suggests to
be mindful of various
business models present
in the market and perform
due diligence optimally,
keeping the regulatory
compliance and customer
satisfaction in mind.
• Be wary of underlying
penalties associated with
operating un-regulated
Insurance businesses.
• Be wary of nature of
company, pricing,
underlying insurer and
grievance redressal
mechanism.
• Be watchful of the product
costs while buying plans,
believing it to be an
insurance product as it
may not be the case at all
times.
Source(s): Redseer Analysis
Therefore, to conclude, there’s a need for a better Regulatory framework for this industry to grow in a
stable manner keeping consumers/ consumer interests in mind.
Our research as explained in detail earlier, clearly infers that
regulatory intervention will be critical to direct this market. As
illustrated in the graphic below, it is important that all the 4
critical stakeholders i.e. Regulator, Channel Partners / OEMs,
Investors as well as end customers / consumers, only support
regulatory approved players to operate in this market.
In the absence of such clear guidelines for 3rd Party service
providers, there is a high chance of conflict of interest where the
seller of the service (in case of 3rd Party sellers) is also taking
over the risk management aspect when they are not qualified
or licensed by the Regulator. There are no checks & balances &
this is fraught with risk both financially as well from consumer’s
interest perspective. Health Insurance in India is a great example
where 3rd Party Service Providers act at licensed TPA (Third
Party Administrators) to supplement the capabilities of Insurers
and ensure a better service for end consumers.
Health insurance sector has a clearly laid out role for each
stakeholder i.e. insurers, agents, third party providers and
channel partners - all subject to the IRDAI regulations. A
similar model is the need of the hour in smartphone insurance
space with IRDAI framing guidelines to regulate roles and
responsibilities of TPAs.
Q: When a non insurance intermediary sells an
insurance cover, how important it is to have a 100% like
to like coverage with a regulatory approved insurer at
the back-end? Specifically keeping the policyholders’
interest in mind?
It is mandatory under law that only registered insurers
can sell insurance products, as approved by the IRDAI.
Unlicensed insurers and fraudulent covers offered by them
run the risk of them being rendered as void contracts,
having hidden costs and diversion of premium, false
promises to policyholders and mis-selling of products and
the biggest risk of such covers being unenforceable in a
court of law.
~ Partner, Shardul Amarchand Mangaldas & Co
Legal Speaks
Smartphone Insurance
31

32. Basis the detailed evaluation, it was found that full-stack
models are better positioned to protect consumers' interest.
Firstly, these insurers maintain adequate financial provisioning
which provides relief the customer with timely settlements
for their claims. In addition, it also ensures business model
sustainability as any negative impacts of higher claim
ratios during a particular period are taken care of, due to apt
provisioning adherence.
Secondly, the product price is ~1/3rd–1/5th that of 3rd Party
Service Providers across mobile phone SKUs, as multiple
intermediaries get involved in case of 3rd parties leading to
surge in their operational costs, which leads to inflated pricing.
Thirdly, Licensed (Full Stack) Insurers take complete end to
end ownership of claims as mandated by IRDAI, However, no
such regulatory adherence is required for 3rd Party Service
Providers, which leads to varied customer claim experience
with these players. Moreover with 3rd Party Service Providers,
claims have to be settled by partnering Licensed (Full
Stack) Insurers, which leads to lack of ownership for settling
customer claims.
Last but not the least, customers buying insurance from an
IRDAI approved service provider can report any grievances to
IRDAI. Therefore, customers of Licensed (Full Stack) Insurers
can directly approach IRDAI with any grievances related to
their policies. However, customers purchasing the same
through a 3rd Party Service Providers cannot avail this facility,
and have to rely on over burdened consumer courts for any
grievances.
Driven by the same, regulatory approved Licensed (Full
Stack) Insurers are best placed to take care of consumers’
interest. The above drivers have been explained in detail in the
subsequent pages.
Source(s): Redseer Analysis
This will ensure stricter guidelines for 3rd Party Service
Providers to bring stability and maturity in the market and build
greater trust among customers. These two measures will aid in
overall growth and development of the Smartphone Insurance
market.
All forms of insurance is highly regulated by the IRDAI, and can only be underwritten by registered insurance companies,
and sold by licensed insurance intermediaries and insurance agents. Smartphone insurance which falls within the category of
general insurance policies are regulated by the specific product guidelines prescribed by the IRDAI.
~ Partner, Shardul Amarchand Mangaldas & Co
Legal Speaks
Smartphone Insurance
32

33. Source(s): Redseer Analysis
Only regulatory compliant business models should be allowed to operate in this sector, as they are well
positioned to safeguard consumers’ interest.
For the 3rd Party Service Providers – the key aspect is the lack of checks & balances against financial & operational impropriety. We
should over index our assertion for this to be in place & curtail the current indiscriminate growth of this industry before it gets too late.
Type Players
Protection of Consumer Interest
Parameter 1 Parameter 2 Parameter 3 Parameter 4
Prudent Risk
Management
– Financial
Provisioning
Transparency in 2
Product Pricing
End to End Claims
Management
Structured Grievance
4 Redressal
Mechanism
Licensed
(Full
Stack)
Insurers
Driven by IRDAI
regulations,
these players
have to ensure
minimal financial
provisioning
(through
themselves or
reinsurer backing
as required)
to safeguard
consumers
interests.
Lower involvement
of intermediaries
allows transparent
pricing and best
service.
Since it is the
insurance company
itself that the
customer needs to
deal with, claim is
a more seamless
experience.
Defined method
to follow with
guidelines and
POC for grievance
redressal as laid out
by IRDAI.
3rd Party
Service
Providers
No risk appetite
as they don’t
have to maintain
any financial
provisioning due to
no IRDAI obligation.
Higher involvement
of intermediaries in
3rd Party Service
Provider’s unit
economics leads to
low transparency in
pricing.
Since they rely on
IRDAI approved
insurer for the
product as well
as claims, their
ownership level for
a claim customer
is low.
Grievance
Redressal is not
governed by a
regulatory as 3rd
Party Service
Providers are not
registered under
IRDAI thus putting
customer’s interest
into jeopardy.
3rd Party Service Providers rely on push sales
by channel partners and OEMs to drive sales.
Low High
Performance Score
Smartphone Insurance
33

34. Glossary
Attach Rate
The attach rate is a concept used broadly in insurance
business, to represent the number of insurance units sold
as a direct or implied consequence of the sale of a primary
product/service.
Mobile Insurance
Insurance refers to a practice or arrangement by which a
company provides a guarantee of compensation for specified
loss, damage of mobile phones in return for payment of a
premium.
Warranty
It’s a written guarantee, issued to the purchaser of a product
by its manufacturer, promising to repair or replace it if
necessary, within a specified period of time.
LFR
Large Format retail stores are usually more than 10,000 sq ft.
in floor size and sell a large variety of products
EBO
Exclusive Brand Outlet
3rd Party Service Provider
3rd Party Service Providers are not IRDAI approved and
usually sell the protection plans with the backing of a partner
insurance giant
Licensed (Full Stack) Insurers
IRDAI approved insurance firms
OEM
Original Equipment Manufacturers
DSA
Direct Selling Agent
Exchange Rate
1 USD = 75 INR
Smartphone Insurance
34

35. Methodology
Overview – We used multiple methods to cover the defined scope of analysis
We spoke to ~900 smartphone users including mobile insurance buyers pan India to gain perspective on their
experience in the current market
Scope
Source
Redseer IP Surveys
Expert
Interactions
Secondary
Research
Market and
competition
Overview –
Smartphone
Insurance
Demand drivers -
Supply drivers -
Market size and
forecasts
-
Types of players - -
Regulatory
Deep Dive:
Licensed (Full
Stack) Insurers
vs.
3rd Party
Service
Provider
Greater Transparency in
Pricing
-
Defined Customer
Grievance Resolution
Mechanism
Impending Regulatory
Oversight
- -
Smartphone Buyers Mobile Insurance Buyers
24%
38%
38%
By City
33%
49%
18%
By Age
Tier 2
Tier 1
Metro
More than 35 years
25-35 years
Less than 25 years
More than 35 years
25-35 years
Less than 25 years
33%
52%
15%
By Age
Tier 2
Tier 1
Metro
19%
47%
34%
N = 225N = 680
By City
Smartphone Insurance
35

36. Report Authors from RedSeer
Anil Kumar
Founder and CEO
Anil Kumar is the founder of Redseer Consulting. He has been part of engagements in Internet, Private
Equity, Retail CPG and Healthcare among others. He specializes in growth and investment strategies.
Anil is a believer of the data-driven approach in solving business problems. His consulting approach
leverages Data IP, sector expertise and the client’s core hypotheses. He holds a B.Tech from IIT-Delhi.
He can be reached at anil@redseer.com
Abhishek Chauhan
Associate Partner
Abhishek heads the Consulting and Diligence practice at Redseer for the Indian Market. He brings in
~14 years of strategy and consulting experience in Technology, Telecom, Insurance / Insure tech and
Internet Sectors, both in the Indian as well as Global markets.
He can be reached at abhishek@redseer.com
Abhishek Gupta
Engagement Manager
Abhishek has served clients in Retail, Government, Education, ICT, Fintech, and Healthcare. He brings
strong project experience in business growth strategy, market entry, due diligence, organization
restructuring, public policy, and debt restructuring. He is an MBA from Indian Institute of Management
(IIM) – Indore, India (2016) with exchange at École supérieure de commerce (ESC) de Clermont –
Graduate School of Management.
He can be reached at abhishek.g@redseer.com
Srishti Pratap
Associate Consultant
Srishti is an Associate Consultant at RedSeer and has a diverse experience of four years holding
expertise in FMCG and Retail sector. She also brings experience in Business Strategy and Business-
Tech Services. She has worked on Market Narrative and Platform Strategy practices in the India
internet market. She holds a B.Tech in Information Technology from GGSIP University, Delhi.
She can be reached at srishti@redseer.com
Abhishek Menon
Business Analyst
Abhishek comes with a diverse experience in e-commerce, retail, digital and logistics sector in his
2 years in Redseer. He has worked on multiple Commercial due diligence engagements, NPS and
competitor benchmarking studies and pricing strategies across geographic verticals of India, MENA,
and SEA. Previously, he was associated with United HealthGroup in a Business Development role. He
holds an education qualification of BBA from Narsee Monjee Institute of Management Studies.
He can be reached at abhishekmenon@redseer.com
Smartphone Insurance
36

37. Disclaimer
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(“RedSeer”). All rights reserved.
While we have made every attempt to ensure that the
information contained in this report has been obtained from
reliable sources, all data and information provided in this
report is intended solely for information purposes and general
guidance on matters of interest for the personal use of the
reader, who shall accept full responsibility for its use. RedSeer
does and seeks to do business with companies covered in its
research reports. As a result, readers should be aware that
RedSeer may have a conflict of interest that could affect the
objectivity of the report.
All information in this report is provided “as is”, with no
guarantee of completeness, accuracy, of the results obtained
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