More consumers are choosing to take out monthly insurance plans instead of annual, says Tinhat report
The Coronavirus lockdown is having an impact on the way consumers buy mobile insurance, according to Tinhat’s latest report.
Tinhat Mobile Insurance revealed that the number of devices it insured for March was down 23 per cent year-on-year.
Tinhat, which is part of Bastion Insurance, caters to the consumer segment of the mobile insurance market.
In the report by Tinhat, the mobile insurer also mentions that there has been a significant drop in claims.
Claims have dropped 57 per cent YoY, with this down to fewer phones being lost or stolen.
The mobile insurer said this is likely down to people not having the freedom to be out as much.
However, without confirming numbers, Tinhat said it is still getting ‘dropped down the toilet’ claims.
Changing consumer habits
The data also shows that customers are opting to take out different plans on insurance.
In March, only 12 per cent of policies sold were for annual plans, with monthly instalment plans up 25 per cent instead.
Tinhat has also seen a slight drop in sales for policies covering devices between £400 and £1,000.
Last year this middle price bracket accounted for 83 per cent of total policies but is down to 70pc this year.
But policies for phones over £1,000 has grown eight per cent, while budget policies (phones under £400) is up to four per cent.