Device insurance remains an underpenetrated market opportunity in many emerging markets, where consumer awareness and adoption are still in their infancy. Unlike in more established markets where comprehensive protection plans are widely available, options for device insurance in these regions are often limited. AppleCare and Samsung Care+, two of the most well-known manufacturer-backed insurance programs, are typically accessible only in major markets with strong infrastructure and higher purchasing power. This leaves a significant gap in protection for millions of mobile phone users in smaller or developing economies where repair costs can pose a financial burden.
Let’s dive into the mobile penetration trends. In 2023, East and Southeast Asia led the world with an estimated 3.1 billion mobile devices, reflecting the region’s large population and rapid technological adoption. South Asia followed with 1.6 billion devices, driven by growing smartphone penetration in countries like India, Bangladesh, and Pakistan. Africa ranked third, with approximately 1.4 billion mobile devices, showing significant expansion in mobile connectivity despite infrastructural challenges in certain areas.
These numbers showcase the role of mobile technology in bridging people around the globe. As smartphone adoption rises and consumers become more reliant on their devices for communication, work, and financial transactions, the need for accessible and affordable insurance solutions is becoming increasingly critical. Addressing this gap presents a major opportunity for companies like Protech to introduce innovative, localized insurance offerings tailored to the needs of these underserved markets.
Repairing a mobile phone can be expensive especially with front and back screen breakages among the most common types of smartphone damage. When customers cannot afford repairs at authorized service centers, they often turn to unauthorized repair shops. While this may seem like a more affordable option in the short-term, it comes with significant risks such as the use of non-genuine spare parts or damage to other components of the device due to unskilled technicians. These can lead to further damage and even higher out-of-pocket expenses over time.
In frontier markets across South and Southeast Asia, Protech is breaking barriers in the insuretech industry by offering simple and basic mobile device coverage for the most common causes of damage at affordable prices. To streamline insurance accessibility, Protech partners with online and offline distributors, retailers, and fintech players in bundling insurance packages directly at the point of sale making purchase of the device insurance convenient for customers. Today, Protech is present in six countries, namely: Bangladesh, Sri Lanka, Mongolia, Brunei, Pakistan, and Myanmar. Looking ahead, Protech is set to expand into the Philippines which ranks the 13th globally in registered mobile devices at 135 million with a person to device ratio of 1.2.
Offering device insurance to new markets is just one piece of the puzzle in making insurance more accessible to customers. On the other side of the equation, the claims process remains a significant pain point for customers which is still largely manual and often requires customers to leave their homes to complete it. Protech is proud to have built a seamless, user-friendly service platform that allows customers to easily process claims, coordinate with logistics partners, and track the progress of repairs at accredited service centers.
The team behind Protech is led by seasoned corporate entrepreneurs, David San Pedro and Jay Exconde, who boast of decades of experience in corporate management and after-market service operations across the Middle East, Africa, and Asia-Pacific. This equips the team to drive innovation and accessibility in the device insurance sector in diverse regions and deliver excellent customer journeys drawing insights from their prior experience. David and Jay are able to deliver high-quality offerings to customers and their partners through their deep understanding of each needs, attention to detail, and ensuring strong execution at every touchpoint. At Kaya Founders, we believe that the team is uniquely positioned to seize the opportunity and the momentum is theirs to capture.
Mobile phones are just the starting point for Protech’s ambitious expansion plans. With a strong foundation in the device service market, Protech envisions broadening its coverage to include other consumer electronics, such as tablets, laptops, and wearables. By leveraging its established network of distributors, retailers, and service providers, Protech aims to expand its presence in each market focusing on affordability, simplicity, and seamless claims processing, this approach lays the groundwork to drive non-insurance adoption. Protech is committed to bridging the insurance gap in underserved regions, making device protection more inclusive and readily available.
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Written by Danielle King at Kaya Founders, illustration by Patrice Lecaros
