The Evolution of Device Insurance in the Digital Age

Read our Advertiser Disclosure.
Contributor, Benzinga
June 28, 2023

Contrary to Maggie’s belief she was not invulnerable nor was her designer cell phone which served as her anchor throughout her high-intensity day. Running from the bank to the car then a stop at her office and back home in 20 minutes with just enough time to pick up the kids was trying. She swung open the door and her phone whizzed off of her lap and skidded across the hot pavement like a hockey puck. Maybe it was ok? Maybe the $52 case did its job? But Maggie, like 5,382 others on that day, were to lift the device, turn it over and painfully slide her thumb across the speckles of broken glass that once fueled up her livelihood. Maggie took a breath, processed information through the now distorted screen and speed dialed. In a hopeful daze she muttered to herself, “AKKO… AKKO…yes, AKKO.”

Once upon a time, during the inception of personal computing, Maggie’s scenario was somewhat of a rarity. During this era, if your prized device malfunctioned or was damaged, professional repair services or replacement were typically the chosen recourse. In fact, insurance beyond home and car in the 80's was considered trendy. But often repair services at the time were time consuming and expensive more often than not requiring a large and hefty device getting dropped off at a shop for weeks/months while parts were ordered telephonically and shipped out. Replacing was less commonplace as it is today as individual parts price and labor nears or often supersedes price on new devices. The main issue here being that if people cannot afford new devices, then it goes the same that they cannot afford the repair. The logical solution is to gain entry to a low-cost consumer friendly service that solves this vicious cycle problem.

Around this time, we also saw a rise in brick-and-mortar shops specializing in computer repair but slowly seizing the opportunity to expand their services to the flip phone and soon the touch screen phone market. However, the disconnect between shop and consumer still existed with the telco's interjecting their poor insurance services in the middle often sending poorly trained or ill begotten techs out to attempt some form of repair oftentimes resulting in even more consumer dissatisfaction.

In spite of this, the demand for device insurance continued to grow. The expanding digital culture and the growing dependence on technology led to a surge in demand. Consumers started realizing that device insurance was a necessity, especially given how intrinsic these devices had become in their daily lives.

Soon, stories of people unable to redeem claims and receiving ridiculous deductibles circulated. This scenario sowed seeds of distrust among consumers. Customer concerns remained unheard, and the incumbents sat idly by as they gouged insurance prices, monetized breakage and provided reprehensible levels of service.

As we approached the turn of the century, the landscape dramatically changed. Devices were not just more prevalent but also significantly more expensive. Suddenly, not having device insurance seemed like a high stakes gamble. Traditional insurers, however, were stuck in a loop of sub-par customer service, confusing policies, and snail-paced claims processing that made molasses look fast. These issues created a customer experience that felt akin to a labyrinth, with consumers often feeling deceived and exploited. Then came the era of smartphones and other mobile devices. These were more than just communication tools; they became personal assistants, multimedia platforms, and invaluable data stores, making them indispensable in everyday life.

New platforms were emerging like Yelp, Trustpilot, pissed customer, and of course the BBB digital that were starting to not only hold companies accountable but directly affect their monetization. As the tables turned on the big guys, the speed of information discovery and a wider variety of choices led to good solutions that entered the free market.  

As the industry took notice, new, customer-centric insurance models started taking shape. They were designed with a focus on faster claims processing, transparency in policies, and improved customer service. The 21st-century customer was also evolving alongside these devices. The digital age consumers were no longer okay with mediocre service. It was a call to arms in the sense of consumer justice. a battle cry of sorts to secure the freedom, rights, life, and honor of our personal property. This ushered in an era of customer-centric device insurance models.

The new device insurance innovators harnessed cutting-edge technology to create platforms that simplified claims processing, offered greater transparency, and enhanced user-friendliness. A shining beacon in this space is AKKO.

AKKO didn't just join the bandwagon; they're steering it. Observing the industry's inadequacies, they built a model that positions the customer at the very core. Their approach to claims is so effortless it feels like child's play. They believe in transparency without the fine print, and their policies reflect that. Above all, their tech-savvy, customer-centric ethos is setting a new benchmark, gradually nudging the industry towards an era of trust. Trust that customers like Maggie can rely on. Customers on the brink, at the end of their rope, and hopeful for a company like AKKO. The savior of sorts, that leads the industry as a servant to their clientele. 

Just a few hours later a smiling face in a white lab jacket slides a shiny phone across a clean granite countertop. This is device-heaven. Maggie lifts the handset, turns it on and stares into the clean bright screen. This being the banner in her hand. And at that moment she wished she had the power to tell others that the despair of their hearts was not to be final, and the plight of broken devices was not without hope. Not with AKKO as the core of all of our collective device solutions