A new report looks at the smartphone theft risk and offers some ideas on stronger solutions for consumers who rely on them for payments, personal data back-up, ID on various portals etc.
The vast majority of UK adults (83%) have an emotional connection to their mobile device, while 45% say they “wouldn’t be able to function” without it. A new report, Transforming Mobile Protection, from SquareTrade, an Allstate company, explores the evolving role of mobile devices and the ways people protect them.
The report reveals that by 2030, emerging AI technologies will redefine mobile devices, changing the way people live, work and think. As current device protection fails to address modern risks, these advancements may widen security gaps and increase threats. To tackle this, insurers must collaborate with the mobile industry to raise awareness of these risks and leverage emerging technologies to adapt insurance solutions. Additionally, the way we own devices is changing, with subscription models becoming the norm.
Protection gaps today
In an era of rising device thefts—where a device is stolen every six minutes in London alone—58% of UK adults worry about becoming victims and stay vigilant in public. The biggest concerns include threats to personal banking, loss of photos and memories, and identity theft. Despite these concerns, SquareTrade reveals that only 20% of adults have mobile device insurance. Nearly half (43%) cite uncertainty about what insurance covers and where to start as key barriers to getting insured.
Device subscription becomes standard
Over a lifetime, the average person will own 20 or more mobile devices, spending over £20,000. However, device ownership is set to change in the next five years. Device as a Service (DaaS) subscription models are expected to grow rapidly, driven by repairability laws, upgrade and rental programs, and emission-reduction initiatives. By 2030, DaaS is predicted to offer seamless access to the latest devices without high upfront costs, shortening upgrade cycles while insurance follows them across devices for continuous protection.
Mobile of tomorrow: Risks and opportunities
With more sophisticated AI technologies on the horizon, shopper expectations for mobile devices are rising. Nearly two thirds (62%) of UK Gen Z and Millennials are excited about AI-powered devices. In the next five years, these devices could act as” second brains,” enhancing memory recall, organising personal data, and creating digital archives of photos, emails, and more—completely reshaping how people manage their digital lives. As technology evolves, connected protection models must adapt to safeguard users’ data and privacy.
Industry change is needed
Standard device insurance covers physical devices but not the data and identities they store. As technology advances and reliance on mobile devices grows, insurance has struggled to keep up. The report highlights the need for innovative solutions to address evolving risks and combat criminals exploiting device vulnerabilities.
“The status quo isn’t enough,” says Kevin Gillan, managing director at SquareTrade Europe. “People need better protection, but it requires industry-wide collaboration—insurers, manufacturers, operators, retailers and regulators—working together to close the gaps. We must act now to educate people on where they are and aren’t covered while creating smarter, seamless protections that safeguard them today and into 2030.”
Download the report here.
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