Finaccord' s Mobile Metrics series of reports offers detailed and unique insights into the behaviour of consumers in the context of mobile telephone insurance. Based on a primary survey of mobile owners in France, Germany, Italy, Spain and the UK carried out between June and August 2006, the research provides valuable data describing the extent to which they take out mobile telephone insurance and clarifying the proportion of uninsured mobile owners who recognise the benefits of the insurance but have simply not yet got round to acquiring cover.

In addition to calculating the percentage of consumers that buys mobile telephone insurance in each country, the investigation also analyses which risks are covered by the policies that they have acquired (ie. accidental damage, loss, mechanical failure, theft, unauthorised usage), whether they have purchased a stand-alone policy or already possess cover through their household insurance, which distribution channel and interface they used to take out mobile telephone insurance and whether they bought a policy at the same time as finalising their mobile contract or retrospectively.

Finally, the reports measure the degree to which mobile owners are satisfied with their insurance, whether they find it expensive and if they are likely to cancel their policy.

0.0 EXECUTIVE SUMMARY

• Penetration rates in Germany, Italy and Spain lag far behind France and the UK...
• ... although the results suggest that cross-selling could advance into the 15%-30% bracket
• Packaging of mobile cover with household insurance poses a significant threat to stand-alone policies
• Mobile telephone network operators and retailers are the major distributors of insurance...
• ... although other channels and remote interfaces have made progress in certain markets
• Most sales of insurance are realised when the underlying telephony contracts are finalised
• Comparatively high levels of customer dissatisfaction indicate problems with churn and retention...
• ... although the percentage of satisfied mobile owners is consistent across all five territories

1.0 INTRODUCTION

• Finaccord
• European consumer research
• Mobile telephone insurance
• Creditor insurance
• Travel insurance
• European market, partnership and bancassurance research
• Research rationale
• Can major continental European markets follow the development witnessed in the UK?
• Research methodology
• The research embraces a total of over 6,250 respondents across the five countries
• Research strengths and weaknesses
• A mixed Internet and telephone research methodology produces balanced results...
• ... assisting insurance companies and other interested parties to benchmark their performance

2.0 EUROPEAN OVERVIEW

• Introduction
• % of respondents owning a mobile telephone
• Ownership of mobile telephones is close to saturation in all five countries
• % of mobile owners in possession of mobile telephone insurance
• Penetration rates for mobile telephone insurance have advanced furthest in the UK and France
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Latent demand for mobile telephone insurance appears to be highest in Spain
• Implied maximum penetration for mobile telephone insurance
• Insufficient supply and weak marketing impede market evolution in Germany, Italy and Spain
• Risks covered by mobile telephone insurance
• Mobile telephone insurance policies in the UK tend to offer more comprehensive cover...
• ... while those in Italy are least likely to afford protection against theft and unauthorised use
• Almost a quarter of mobile owners in the UK are protected in the event of the loss of their handset
• Policies paid for separately and packaging with household insurance
• Over a third of German mobile owners with insurance obtain it through their household policy...
• ... and over five times as many customers in the UK buy unbundled cover as occurs in Germany
• Distribution channels used for mobile telephone insurance
• Distribution choices can be analysed separately for consumers buying stand-alone policies
• Mobile telephone network operators and retailers account for the highest share of sales in France
• ... with banking institutions achieving better results than might have been expected in this field
• Distribution interfaces used for mobile telephone insurance
• Face-to-face sales constitute the dominant interface in all markets other than the UK...
• ... where use of remote interfaces accounts for around 70% of the distribution pie
• Mobile telephone insurance - point in time obtained
• An ineffective point of sale boosts retrospective marketing of mobile telephone policies in Germany
• Mobile owners are most likely to buy insurance irrespective of the specific moment in time
• Attitudes towards mobile telephone insurance of respondents with cover
• The percentage of mobile owners who value their insurance is consistent across all countries

3.0 FRANCE

• Introduction
• Research sample
• The research embraces a total of 1,232 respondents in France
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

4.0 GERMANY

• Introduction
• Research sample
• The research embraces a total of 1,210 respondents in Germany
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

5.0 ITALY

• Introduction
• Research sample
• The research embraces a total of 1,222 respondents in Italy
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

6.0 SPAIN

• Introduction
• Research sample
• The research embraces a total of 1,250 respondents in Spain
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

7.0 UNITED KINGDOM

• Introduction
• Research sample
• The research embraces a total of 1,340 respondents in the UK
• % of respondents owning a mobile telephone
• % of mobile owners in possession of mobile telephone insurance
• Attitudes towards mobile telephone ins. of mobile owners without cover
• Risks covered by mobile telephone insurance
• Policies paid for separately and packaging with household insurance
• Distribution channels used for mobile telephone insurance
• Distribution interfaces used for mobile telephone insurance
• Point in time chosen by mobile owners to obtain mobile telephone ins
• Attitudes towards mobile telephone insurance of mobile owners with cover

GRAPHICS / TABLES

• Sample breakdown across five European countries by age group
• Sample breakdown across five European countries by annual household income
• % of respondents in five European countries owning a mobile telephone, 2006
• % of mobile owners in five European countries in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in five Euro. countries without cover, 2006
• Implied max. penetration rate for mobile telephone insurance among mobile owners in five Euro. countries, 2006
• Risks covered by mobile tele. ins. in five Euro. countries, 2006 (penetration among those with mobile tele. ins.)
• Risks covered by mobile telephone insurance in five Euro. countries, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in five Euro. counts. bet. pols. paid for sep. and pols. pack' d with house.ins., 2006 (1)
• Segment. of mob. tele. ins. in five Euro. counts. bet. pols. paid for sep. and pols. pack' d with house.ins., 2006 (1)
• Distribution channels used for mobile telephone insurance in five European countries, 2006
• Distribution interfaces used for mobile telephone insurance in five European countries, 2004-6
• Point in time chosen by respondents in five European countries to obtain mobile telephone insurance, 2006 (1)
• Point in time chosen by respondents in five European countries to obtain mobile telephone insurance, 2006 (2)
• % split of attitudes towards mobile telephone insurance of mobile owners in five Euro. countries with cover, 2006
• Sample breakdown in France by age group, household income band and geographical location
• % of respondents in France owning a mobile telephone, 2006
• % of respondents mobile owners in France in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in France, 2006
• Risks covered by mobile telephone insurance in France, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in France, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in France between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in France, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in France, 2006
• Point in time chosen by respondents in France to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in France with cover, 2006
• Sample breakdown in Germany by age group, household income band and geographical location
• % of respondents in Germany owning a mobile telephone, 2006
• % of respondents mobile owners in Germany in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Germany, 2006
• Risks covered by mobile telephone insurance in Germany, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in Germany, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in Germany between pols. paid for separately and pols. pack' d with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in Germany, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in Germany, 2006
• Point in time chosen by respondents in Germany to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Germany with cover, 2006
• Sample breakdown in Italy by age group, household income band and geographical location
• % of respondents in Italy owning a mobile telephone, 2006
• % of respondents mobile owners in Italy in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Italy, 2006
• Risks covered by mobile telephone insurance in Italy, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in Italy, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in Italy between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in Italy, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in Italy, 2006
• Point in time chosen by respondents in Italy to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Italy with cover, 2006
• Sample breakdown in Spain by age group, household income band and geographical location
• % of respondents in Spain owning a mobile telephone, 2006
• % of respondents mobile owners in Spain in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Spain, 2006
• Risks covered by mobile telephone insurance in Spain, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in Spain, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in Spain between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in Spain, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in Spain, 2006
• Point in time chosen by respondents in Spain to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in Spain with cover, 2006
• Sample breakdown in the UK by age group, household income band and geographical location
• % of respondents in the UK owning a mobile telephone, 2006
• % of respondents mobile owners in the UK in possession of mobile telephone insurance, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in the UK, 2006
• Risks covered by mobile telephone insurance in the UK, 2006 (pen. among those with mobile telephone ins.)
• Risks covered by mobile telephone insurance in the UK, 2006 (penetration among all mobile owners)
• Segment. of mob. tele. ins. in the UK between pols. paid for separately and pols. packaged with house. ins., 2006
• Distribution channels used for stand-alone mobile telephone insurance in the UK, 2006
• Distribution interfaces used for stand-alone mobile telephone insurance in the UK, 2006
• Point in time chosen by respondents in the UK to obtain stand-alone mobile telephone, 2006
• % split of attitudes towards mobile telephone insurance of mobile owners in the UK with cover, 2006