GCC Mobile Phone Insurance Market

Market Overview:

The GCC mobile phone insurance market size reached USD 594.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,211.6 Million by 2033, exhibiting a growth rate (CAGR) of 7.83% during 2025-2033.

Mobile phone insurance provides reimbursement to the cell phone user against financial losses, which are beyond the control of the insured party. It usually offers coverage against theft, accidental damage, water damage, high repair cost, cracked screens and other broken parts. At present, due to the increasing sales of smartphones and the rising instances of robbery, mobile phone insurance is gaining traction in different parts of the GCC region.

The increasing utilization of smartphones, along with the growing focus of individuals on safeguarding their mobile devices, represents one of the major factors escalating the demand for mobile phone insurance in the GCC region. Moreover, the emergence of multichannel interaction and direct-to-consumer insurance assistance is bolstering the market growth. Apart from this, leading insurance providers are focusing on online insurance platforms and offering a paper-free process from purchase to claims of the policy. They are also providing mobile data and virus protection plans, which is anticipated to propel the market growth in the coming years.

GCC Mobile Phone Insurance Market Trends:

Expansion of 5G networks

The expansion of 5G networks in the GCC region is fueling the market growth. As per the ITA, by September 2024, Riyadh's 5G coverage surpassed 94%, positioning the capital of Saudi Arabia as one of the top cities worldwide for 5G accessibility. Individuals are transitioning to sophisticated, premium smartphones that enable 5G connectivity. These gadgets typically have a steep cost, leading users to be more motivated to insure them. With 5G helping to improve digital activities, such as streaming, gaming, and instant communication, individuals depend more on their smartphones for everyday activities, which heightens the perceived importance and need for the device. This reliance is generating concerns about possible harm or loss, encouraging people to choose full coverage. Telecom companies also bundle insurance with new 5G plans, enhancing accessibility and uptake.

Increasing cybersecurity concerns

Rising cybersecurity concerns are positively influencing the market in the GCC region. As per the IMARC Group, the GCC cybersecurity market size attained a value of USD 5.7 Billion in 2024. With smartphones being central to banking, communication, and work, any compromise in data security can lead to significant personal and financial loss. As a result, people are looking for insurance plans that not only cover physical damage or theft but also offer protection against digital threats, including data recovery and cyber assistance. Insurers are responding to this demand by offering enhanced mobile insurance packages with cybersecurity features. The growing use of mobile wallets, cloud storage, and sensitive apps is further amplifying these concerns, leading users to seek comprehensive protection.

Rising e-commerce and mobile shopping trends

The growing e-commerce and mobile shopping trends are offering a favorable market outlook. With more people buying smartphones online, many e-commerce platforms are offering insurance as an add-on service during checkout, boosting awareness and adoption. The digital nature of these transactions also allows users to compare plans, read reviews, and select coverage that best suits their needs. As mobile phones are often purchased through online flash sales, deals, and installment offers, buyers are more likely to invest in protecting their devices through insurance. Additionally, the convenience of digital claim processing and instant policy activation appeals to the tech-savvy population. The growing trust in online services across the region is supporting a seamless integration of mobile insurance into the broader e-commerce experience. As per industry reports, the Saudi Arabia e-commerce industry is set to represent 46% of the total retail market by 2030.

GCC Mobile Phone Insurance Market Drivers:

Growing smartphone penetration

Rising smartphone penetration in the GCC is propelling the market growth. With an increasing shift towards high-end and premium devices, people are becoming more aware about the financial impact of damage, theft, or loss, leading them to seek insurance coverage. The widespread use of smartphones across all age groups, including youth and professionals, is creating a broad customer base for mobile insurance providers. Additionally, telecom operators and retailers are capitalizing on this trend by bundling insurance with new smartphone purchases or upgrades. The growing digital lifestyle in the region, combined with high usage of mobile applications and services, is making device protection more essential. As smartphones are becoming indispensable daily tools, insuring them is becoming a logical and necessary choice.

Collaborations between insurers and mobile retailers

Collaborations between insurers and mobile retailers or telecom operators are playing a crucial role in fueling the GCC mobile phone insurance market growth. These partnerships are enabling seamless bundling of insurance policies with device purchases or mobile plans, making insurance more accessible and convenient for users. Retailers and telecom providers act as direct channels for insurers, reaching a wide customer base at the point of sale. This approach is increasing user awareness and boosting the uptake of insurance services, especially when offered with attractive pricing, installment plans, or added benefits. Additionally, such collaborations allow the employment of integrated services like instant policy activation, easy claim processing, and on-site repairs or replacements. As telecom operators are seeking to enhance customer retention through value-added services, insurance is emerging as a key differentiator, further supporting the market growth.

Rising tourism activities

Increasing tourism activities are offering a favorable market outlook. Tourists often carry expensive devices for navigation, photography, and communication, making them more vulnerable to loss, theft, or accidental damage in unfamiliar environments. This risk is encouraging travelers to purchase short-term or travel-inclusive mobile insurance plans. Additionally, the influx of international visitors prompts local retailers and telecom providers to offer insurance options at the point of sale (POS) or rental services, catering to tourists’ needs. Residents, too, are more likely to insure their phones when traveling within or outside the region. As tourism continues to grow due to events, festivals, and business travel, the demand for convenient, reliable, and immediate mobile insurance solutions is high across the region.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC mobile phone insurance market report, along with forecasts at the regional and country levels from 2025-2033. Our report has categorized the market based on phone type, coverage, distribution channel and end user.

Breakup by Phone Type:

• New Phone
• Refurbished

Breakup by Coverage:

• Physical Damage
• Electronic Damage
• Virus Protection
• Data Protection
• Theft Protection

Breakup by Distribution Channel:

• Mobile Operators
• Device OEMs
• Retailers
• Online
• Others

Breakup by End User:

• Corporate
• Personal

Breakup by Country:

• Saudi Arabia
• UAE
• Qatar
• Oman
• Kuwait
• Bahrain

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Report Coverage:

Key Questions Answered in This Report:

• How has the GCC mobile phone insurance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the GCC mobile phone insurance market?
• What are the key regional markets?
• What is the breakup of the market based on the phone type?
• What is the breakup of the market based on the coverage?
• What is the breakup of the market based on the distribution channel?
• What is the breakup of the market based on the end user?
• What are the various stages in the value chain of the industry?
• What are the key driving factors and challenges in the industry?
• What is the structure of the GCC mobile phone insurance market and who are the key players?
• What is the degree of competition in the industry?