You're buying an experience, not a thing

Let's consider the role of non-life insurance. When consumers buy something, they are essentially buying an experience. For example, a smartphone only has value once it's personalized, installed, and used with their favorite apps. This experience can be interrupted by deterioration or breakdown of the product. Sending it in for repair is a good option, but it costs money, and the experience is interrupted until it's fixed. From the seller's perspective, this increases the risk that customers will switch to another company. This is where insurance (warranty) comes in. It's built into the product price, and if it breaks down, same-day replacement maintains the experience and increases the customer's LTV (lifetime value). Having insurance or not truly makes the difference between heaven and hell for both sellers and buyers. This type of built-in insurance is now expanding to all genres, ensuring the continuity of consumer experience.