TL;DR

  • The mobile device insurance market is growing, set to triple by 2032
  • Itโ€™s difficult for MVNOs to open insurance enrollment year-round or with BYOD cases without proper visibility into a deviceโ€™s condition
  • MVNOs need tools to diagnose and assess a device objectively so they can comfortably increase insurance offers year-round

For MVNOs, device insurance can be more than just a value-added service to customers, but a real growth lever for operators. The mobile device insurance market in North America is on track to nearly triple by 2032, signaling demand and a strong opportunity for operators to boost ARPU.

In a survey of over 23,000 carrier customers, MCE found that one in four consumers needed a repair within just two years, with a cost that could reach as high as $300. That means a significant slice of operatorsโ€™ customer bases are running into issues that device protection plans could cover. And depending on the plan, attaching device protection can lift ARPU by anywhere from $6 to $18 per user depending on the comprehensiveness of the coverage. The opportunity is there, but so are the barriers to opening it up.

The Catch: Limited Visibility into the Device

MVNOs face a unique challenge in growing insurance attachment: limited knowledge about the customerโ€™s device. Unlike traditional operators that sell the handset as part of the package, MVNOs often deal with bring-your-own-device (BYOD) customers. That means no real visibility into the condition or risk profile of the phone, since it is foreign. Without this, itโ€™s hard to determine eligibility or to make a precise insurance offer without exposing the business to unnecessary risk.

This leads to missed opportunities. Some customers might get blanket-denied coverage unfairly. Others might never even be offered a plan, especially if they joined through a BYOD.

High-Definition Visibility: App-Based Diagnostics

This is where on-device diagnostics come in. By building diagnostic capabilities into the central or standalone app, MVNOs can turn an unknown device into a well-known one in minutes. When a customer is prompted to or opts to run a quick diagnostic test, MVNOs get a digital, objective look at their deviceโ€™s condition. No guesswork, no manual inspection.

With this in place, MVNOs can safely open up insurance enrollment, even outside the usual windows. Whether itโ€™s a new customer onboarding with a BYOD device or an existing one browsing in the app, MVNOs can trigger insurance offers based on real-time diagnostics. That makes the offer smarter, reduces risk and gives customers the protection they want,when they want it.

For MVNOs looking to boost ARPU and make insurance a reliable revenue stream, on-device diagnostics turn a blind spot into a strategic advantage. Learn more about MCEโ€™s solutions for offering device protection opportunistically.