Telcos Turn to AI-Powered Insurance as ARPU Growth Stalls, Boosting Customer Loyalty and New Revenue Streams

Telecom operators are increasingly expanding into insurance services as stagnating Average Revenue Per User (ARPU) and saturated consumer connectivity markets limit growth opportunities. Smartphone user in Malaysia GSMA According to Omdia, bundling insurance with AI-powered cybersecurity, fraud protection, smart home services, and loyalty programs is emerging as a high-value strategy that helps operators generate new revenue while improving customer retention and reducing churn.