Telecommunication Insurance Market Expected to Reach $41.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Telecommunication Insurance Market," The telecommunication insurance market was valued at $8.5 billion in 2021, and is estimated to reach $41.6 billion by 2031, growing at a CAGR of 17.5% from 2022 to 2031.

The modern-day telecom industry is facing a broad landscape of significant business challenges. Over the past few years, the industry witnessed a heavy decline of revenue streams in core areas like voice and text messaging along with severe competition from over-the-top service providers. The telecom industry is focused to undergo a digital transformation to stay competitive in 2022. Moreover, the telecom industries are leveraging technologies such as Mobile Edge Computing (MEC), IoT, and 5G to recover from the COVID-19 crisis and position themselves in the future. Their services need to be customer-centric, improve efficiency, and add high-value margins by gradually moving from traditional services.

Moreover, telecom business owners face increased exposure to risk due to the constant change within this competitive industry. Consequently, it is vital that telecommunication contractors along with paging and security system companies have the appropriate insurance coverage in place. Furthermore, insurance for telecommunications companies plays a unique role in the telecommunications business, mainly because telecom contractors and firms face a unique set of risks in the course of their everyday work. This is in addition to the normal risks that businesses face over the course of time. Therefore, these were some of the major telecommunication insurance market trends.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhance services to their customers. For instance, in May 2022, International Insurtech, bolttech, announced its partnership with one of Vietnam’s leading telecommunications network operators, Viettel Telecom. The partnership launched an insurance offering, powered by bolttech’s insurance exchange platform, on Viettel’s customer app MyViettel with products including health, travel, home, car, and motorbike. In addition, by embedding an insurance platform into the Viettel customer experience, the company can reach more customers in Vietnam with a choice of insurance to meet their needs and the convenience to access these products in a simple, easy way. These strategies are projected to provide major lucrative opportunities for the telecommunication insurance market growth.

On the basis of application, the equipment manufacturer segment is the highest growing segment. This is attributed to the fact that equipment manufacturers require telecommunication insurance as they are exposed to several risks in the telecom insurance industry. Risk of loss due to a faulty equipment, or short circuit in an equipment may cause bodily injury to the worker or any other person near it. Thus, a general liability insurance is required by the equipment manufacturers which comes under the telecommunication insurance policy.

On the basis of region, North America attained the highest growth in 2021 for the telecommunication insurance industry. This is attributed to the rise in the exponential growth of telecommunication industry across the North America. Moreover, the communication industry is driven by massive developments in telecommunicates industry as a result of increasing deployment of 4G and LTE networks. In addition, the market is expected to grow due to an increase in number of cellular stations and the demand for telecommunication insurance for the next generation ready network equipment brought on by introduction of 5G networks.

COVID-19 had a positive impact on the telecommunication insurance market as there were several data breaches and cyber-attacks on the telecommunication industry for which the businesses adopted telecommunication insurance to cover such risk. Moreover, employees demanded workers compensation for hospitalization fees for which the businesses adopted telecommunication insurance. Therefore, the pandemic had a positive impact on the telecommunication insurance market.

Key Findings of the Study

• By coverage, the general liability segment led the telecommunication insurance market size in terms of revenue in 2021.
• By enterprise size, the large enterprises segment accounted for the highest telecommunication insurance market share in 2021.
• By region, North America generated the highest revenue in 2021.

The key players profiled in the telecommunication insurance market analysis Allianz, ANDERSON LLOYD INTERNATIONAL, Aon plc., Bluestone Insurance Services Ltd. , CapriCMW Insurance Services Ltd., Chubb, Employers Mutual Casualty Company, Farmers Union Insurance, Arthur J. Gallagher & Co., The Hartford, Insureon, McGriff Insurance Services, Inc., Sompo International Holdings Ltd., Tower Street Insurance, The Travelers Indemnity Company, CoverWallet, and TechInsurance. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.