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How to Scale Your Non-Insurance Business via Gadget Insurance

Updated: Sep 10

“Like air and drinking water, being digital will be noticed only by its absence, not its presence.”, wrote Nicholas Negroponte, chairman of MIT Media Lab, in a WIRED magazine article in 1998. Yes – 19 years ago!


As Nicholas Negroponte predicted, nowadays digital really is almost like air. People travel more, own more expensive gadgets and have become dependent on their tech. Technology is, in fact, shaping people’s lives.


While this dependency can be overwhelming, gadgets have helped people increase their productivity, maintain physically distanced connections and keep entertained and occupied.

For that reason, human’s attachment toward their gadgets, and particularly their phones, is producing a new fear – fear of being without it.


Smartphones Are Constantly at Risk


In a 2016 Consumer Reports survey about smartphone mishaps, a respondent reported accidentally drowning his phone in a washing machine. Another ran one over a phone with a car. Then there was the phone that a pit bull used as a chew toy. In the survey which involved more than 5,200 people with at least one smartphone in their household , about 50% of respondents reported at least one major smartphone fiasco during the previous 24 months. (10% had three or four incidents).


With smartphones costing over 1,000€ and other gadgets, like laptops, costing more than 2,5000€, a gadget insurance policy could save your customer real money and bring him peace of mind. Also, gadgets are expensive to replace and, because people take them everywhere, the odds of losing them or being robbed are huge.

This is why there is a huge opportunity in the business of protecting people’s gadgets.


Non-Insurance Digital Players And Their Undeniable Competitive Edge


It is essential that businesses change at the same pace of consumers, and insurance solutions are not an exception. Traditionally, insurance agents and brokers have been the go-to distribution partners for insurers but that strategy has proved to be ineffective as it ‘interrupts’ the consumers’ journey.

Source


Non-insurance digital ecosystems have an undeniable competitive edge compared to insurers - Data. These ecosystems have an enormous amount of customer data which can be leveraged to offer better customer offerings with personalized insurance policies as well as provide better coverage with insurers using data to mitigate risks like never before.


At Habit, we believe that integrating insurance into existing customer journeys through technology adds an immense value to your customers. First of all, they are not interrupted on their journey when purchasing insurance. Then, the fact that you are offering insurance - a brand customers already like and trust - will increase conversion rates significantly. Also, accessing and purchasing insurance becomes a quick, seamless experience that customers are already used to.


Take digital banks as an example. It’s likely that a large part of their users own high-end mobile phones and are also heavy travelers. That is the perfect ‘combo’ to offer gadget insurance, and complement it with other insurance offers, according to the behavior of the customer (your data will show you what your customers needs most).

Gadget Insurance What It Looks Like

Gadget insurance is a type of policy that offers protection for multiple devices, like smartphones, laptops and tablets.


Gadget insurance usually covers gadgets for:

  • Theft

  • Loss (usually at an cost extra)

  • Mechanical breakdown

  • Accidental damage, including liquid damage and cracked screens

The insurer then covers the cost of repairing or replacing your gadget, up to the maximum value listed in your policy documents. Customers will have to pay an excess if they claim.


AIG and Allianz are examples of companies offering gadget insurance, but there are others.

Drone Insurance What It Looks Like


As drones (or UAV - unmanned aerial vehicles) become cheaper to purchase, smaller in size and easier to operate, growth projections for the sector are significant. By many, the drone industry is regarded as the most dynamic growth sector of the global aerospace industry. Businesses are now using drones for commercial purposes including filming, photography and surveillance and are using them to advance their services. Likewise, people are using drones recreationally.



Local authorities have recognised the considerable growth in this sector and the risks associated with the use of UAVs. Regulation has become tighter and a number of territories are reviewing their guidelines.


Insurers are keeping up with this reality and now offer drone insurance coverages that are tailored to the specific needs of individual operators.


Drone insurance usually covers:

  • Aircraft operators, including non-pilot and on-ground crew members

  • Physical damage, for damage to the aircraft itself

  • Other optional coverages

We work with insurance partners who offer a bespoke solution for drones. Talk to us to learn more.

How You Can Find and Sell Gadget and Drone Insurance


Habit works with global insurance partners that offer innovative, customized gadget and drone insurance solutions targeted to your customers, in your locations. We are authorized to sell insurance so you don’t have to go through the time-consuming regulatory process.


Gadget insurance will be embedded natively into your platform, without interruptions, offering a new add-on that will protect the products you sell or distribute.


Drop us a message or request a call with us to learn how to integrate cross-selling insurance solutions into your website or mobile app.


Why Use Habit To Scale Your Business?


Habit helps you earn new digital revenue with our innovative cross-selling insurance technology.


We work with you to choose and scale the insurance program which best suits the needs of your customers, across different locations, while maintaining a consistent customer experience.


Alongside this, we deliver reporting and analytics on your insurance programs with us. You can embed our technology into your customer journey with our simple API.


Request a call to learn more about how to integrate our API into your digital ecosystem.





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