Gadget insurance in the UK has hit a record high, with policies rising from 7.87m in 2023 to 8.46m in 2024, as the prices of smartphones, tablets and wearable surge.
According to research from independent insurance consultancy Broadstone, the sector has seen an annual growth of 7.5%, with premium income also climbing from £496m in 2023 to £604m in 2024, a 22% increase
Analysis highlights that gadget insurance is one of the few UK general insurance products demonstrating consistent growth while maintaining fair payout ratios.
Add-on policies remain stable at 41.8%, while stand-alone products saw payouts drop from 59.3% in 2023 to 42.9% in 2024, likely reflecting pricing recalibration. Claims frequency has fallen across both product types, suggesting a more sustainable utilisation of the insurance.
Broadstone noted that smartphones, tablets and wearables are now “essential tools for work and leisure” rather than luxury items, with rising device prices contributing to higher demand and premiums.
Cormac Bradley, Senior Actuarial Director at Broadstone, said, “While some niche insurance products struggle to justify their value, gadget insurance is thriving. It is delivering consistent consumer benefit and adapting to market realities.”
He added, “Driven by the rising importance – and cost – of devices in people’s everyday lives, consumer demand is strong and becoming an essential product. It’s one of the few product lines that appears to be engaging younger consumers while maintaining fair value metrics.
“This could be a sign that insurers are beginning to close the generational gap in product relevance and accessibility. Insurers that meet younger consumers where they are today are well placed to anticipate their needs and build trust that lasts well beyond the gadget lifecycle.”
Looking ahead, he emphasised the opportunity and caution for insurers, “The growth in this market is a significant opportunity for insurers underpinned by a stable regulatory outlook however insurers must also be alive to shifting trends to support further expansion. For example, tech inflation and evolving risk profiles which may necessitate dynamic pricing.”
