China Gadget Insurance Market
InsurTech Development in China Fuels China Gadget Insurance Market Growth
InsurTech is emerging as a transformative force across every aspect of the traditional insurance industry. This shift is driven by various factors, including substantial capital investments, advancements in technology, and the widespread adoption of e-commerce. China has positioned itself as a significant market for the growth of InsurTech. This innovative sector is crucial in enhancing the insurance ecosystem and addressing common challenges within the industry, such as customer engagement, cybersecurity threats, and cost reduction.
InsurTech represents the convergence of insurance and technology, encompassing the strategic utilization of artificial intelligence (AI), blockchain, big data, and other cutting-edge technologies to enhance the value propositions of insurance entities. According to the World Economic Forum, new advanced technologies will sweep across traditional financial industries such as banking, securities, and insurance, but will have the greatest long-term positive impact on the market growth. The rapid evolution of the digital economy and ongoing technological advancements have created a conducive environment for the growth of InsurTech in China. In recent years, the sector has experienced significant development and widespread adoption of InsurTech solutions, fundamentally transforming the operational landscape of the insurance industry.
China has made steady progress in developing its digital infrastructure, with numerous firms integrating cloud computing and InsurTech innovations such as big data and AI into their operations. By the end of 2020, approximately 76.79% of insurance companies had embraced cloud computing. Insurers have achieved substantial advancements in leveraging InsurTech, with big data, AI, and blockchain facilitating precise pricing models, targeted marketing strategies, and efficient claims processing. As of the end of 2020, the insurance industry’s average underwriting automation rate stood at 64.71%, while the claims automation rate reached 21.48%.
China Gadget Insurance Market: Industry Overview
The China gadget insurance market report is segmented on the basis of type, device type, sales channel, and end user. The China gadget insurance market is segmented on the basis of coverage type, device type, sales channel, and end user. Based on coverage type, the market is categorized into physical damage, theft and loss protection, and others. In terms of device type, the market is divided into laptops and PCs, smartphones, tablets, wearable devices, home entertainment devices, cameras, and others. Based on sales channel, the market is segmented into retail and online. In terms of end user, the market is categorized into businesses and individuals.
Based on device type, the market is divided into laptops and PCs, smartphones, tablets, wearable devices, home entertainment devices, cameras, and others. The smartphones segment held the largest China gadget insurance market share in 2023. Smartphone insurance has evolved as an essential component of the overall gadget insurance industry, reflecting the growing reliance on mobile devices in both personal and professional settings. As smartphones become more important instruments for communication, business, and leisure, the need for comprehensive insurance coverage to safeguard against numerous risks such as theft, unintentional damage, and mechanical failure has increased dramatically. With millions of smartphones in use in China, the demand for insurance coverage has surged. For instance, as per the data from the China Academy of Information and Communications Technology (CAICT), in April 2024, overall smartphone sales in China increased by 25.5% to 22.7 million units. Consumers are increasingly aware of the financial implications of repairing or replacing high-value devices, prompting them to seek protective measures. Hence, the future of smartphone insurance looks promising, with significant growth potential as awareness and demand for coverage continue to rise
China Gadget Insurance Market: Competitive Landscape and Key Developments
The China Gadget Insurance market analysis is carried out by identifying and evaluating key players in the market across different regions. AT&T, Apple Inc., ASSURANT, INC., AmTrust Financial, HDFC ERGO General Insurance Company Limited, Chubb, ICICI Group, AXA, Zurich General Insurance Company (China) Limited, Samsung, and HUAWEI Care are among the prominent players profiled in the China Gadget Insurance market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. As per the company press releases, below are a few key developments:
- AmTrust Financial Services acquired Contractor Managing General Insurance Agency (CMGIA), a California-based MGA offering surety bonds to small- to mid-sized contractors. The agreement allows AmTrust to quickly develop a foothold in the small- to medium-sized contractor surety market. As part of the arrangement, CMGIA will provide surety bonds to small- to medium-sized contractors in all 50 states, expanding on its proven track record of handling a diverse variety of standard and specialty accounts. (Source: AmTrust Financial Services, Press Release, April 2024)
- Samsung announced an upgrade in its Samsung Care+ program, providing consumers with added benefits at no additional cost. Under the revamped Samsung Care+ program, customers can now avail of two claims in a year. The two claims in a year are applicable for both screen protection as well as accidental and liquid damage protection plans. (Source: Samsung, Press Release, May 2024)
- American International Group, Inc. announced a significant milestone in its ongoing digital transformation with the launch of a refreshed AIG.com website and reimagined myAIG Broker Portal. The new AIG.com is designed to make engaging and working with AIG easier for brokers, risk managers, investors, and current and future colleagues, among others. (Source: American International Group, Inc., Press Release, May 2024).
