P2P Insurance Startups Capitalizing on the Power of Virtual Communities
By Elena Mesropyan for LTP
While the commercial value of social networks has yet to be discovered by the corporate world, technology startups are already employing it to build solutions entirely based on social connectivity. P2P proved to be an especially successful business model in lending and insurance. Hundreds of startups across segments and models capitalize on the use of big data, Internet of Things (IoT), mobile technology, AI, and mentioned earlier social networks. At the moment, let’s focus on those relying on the power of virtual communities to build a successful business:
Axieme is an Italian P2P insurance platform that allows participants to share the risk of an accident or damage along with other people. A person becomes part of a community by buying a policy of interest with Axieme. The premium paid is divided into two parts: one is for the insurance company, which will deal with the accident and guarantees compensation in the event of an accident; the other part is destined to a piggy bank. The insured at this point can choose whether to become part of a group that already exists, or give birth to a new circle by becoming an ambassador. As a buying group, members make a collection piggy bank in the circle and share the risk with all the other members of the same circle.
Besure developed a portal that helps people like the guitarists and the iPhone users come together in “pools” and chip in for protection they can’t really get anywhere else for just a few dollars a month. As a peer-to-peer platform, be sure puts the community in control of every aspect of the process, including claims adjudication.
Bought By Many is a free, members-only service that helps users to find insurance for the things in life that are out of the ordinary. Members save an average of 18.6%. The company negotiates discounts directly with insurers for the clients’ unique situations.
CommonEasy is an online platform that enables the user to create a safety net with their network. It calculates user insurance for gadgets based on friends and family. All members decide how much they agree to pay for others.
Friendsurance has implemented the concept of online P2P insurance which combines social networks with well-established insurance companies. Customers can connect to form individual insurance networks, thereby lowering their annual insurance premiums by up to 50%.
Inspeer allows users to share insurance “deductibles” with their friends and family members. It allows users to select the people with whom they plan to share the deductibles.
Inspool uses the power of social networks to let drivers connect with family and friends to form their own insurance groups. The group pools premiums together online and trusts each other to only make claims when necessary and not to inflate claims.
Insureapeer allows to save money on car insurance and eliminate deductibles by pooling money with friends and family. Members use their personal network to pay for car insurance deductibles when they have to file a claim and can get cash back when the group has a loss-free year and also save on renewal premiums.
Jointly is a P2P platform for car insurance. With Jointly, customers can receive up to 70% of the premium back when they keep claims low.
Lemonade is a property and casualty insurance company that offers a fast, affordable and hassle-free insurance experience. Launching gradually in the US during 2017, the company is a licensed insurance carrier, offering homeowners and renters insurance powered by artificial intelligence and behavioral economics. By replacing brokers and bureaucracy with bots and machine learning, Lemonade promises zero paperwork and instant everything.
PeerCover is the only P2P insurance provider in New Zealand. PeerCover does not involve lending money to friends and family; instead, PeerCover makes cost-sharing simple and hassle-free. Users can help out peers as a bonus.
So-sure is a UK startup (launches soon in the US) designed to allow members and their friends to get money back in the absence of claims. Members are covered for theft, loss, accidental damage and breakdown. The company claims that its policies are up to 40% cheaper than the phone companies. Members can also get 80% cash back when they connect with friends and none of them claim.
Teambrella’s users provide coverage to each other. If a member submits a claim within his/her team, the teammates reimburse it. Each teammate deposits funds into a special personal bitcoin wallet. The funds in the wallet are co-controlled by the teammate and the team. If the team votes to reimburse a teammate, all teammates are to pay their share from those wallets.
Tribe is a Norwegian startup offering insurance for life and injury. Members form groups with friends and family. In case someone in the group gets hurt, discount on insurance gets reduced by 20 percentage points in one year. When the discount reaches 0%, members pay the same price they were paying initially. Up to 10 people can be chosen to form a “Tribe.” One added friend gives a 5% discount for a year, 10 friends give 50%.
Wecover is a collaborative insurance for good drivers. At the beginning of the year, each “very good driver” pays his dues and fills the pot. In the case of an accident, the pot can be used to cover expenses – the level of guarantee and assistance remains at a maximum and the contributions do not increase. At the end of the year, the remains of the common pot are redistributed to each member of the group.
Wesura is the insurance between friends that offers communities from one to 20 people; coverage in case of theft, loss or accidental damage overall; replace what you lost in a week without lengthy paperwork; repayment of a large part of your contribution if nothing happens.
WorldCover offers P2P investments. It connects a growing pool of investors who seek uncorrelated investment returns and impact from their capital with a huge and growing need for natural disaster insurance in the developing world.
Zero is a platform that enables businesses to group together to create their own insurance. Members directly make sure claims are paid timely to keep business running and avoid fraud, define their risk tolerance and own it, and work directly with reinsurers to handle the risks beyond their scope.
First appeared at LTP