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Insurance in the Sharing Economy

Sharing may be caring, but now it is also a booming economy. The sharing economy—otherwise known as collaborative consumption or the peer economy—is disrupting everything from transportation and lodging to errands and the exchange of goods. One of the latest areas to feel this disruption is the insurance industry with the peer-to-peer (P2P) insurance. What Is Peer-to-Peer Insurance? Insurtech, a fusion of new insurance models and technology, is the broader umbrella peer-to-peer insurance is sheltered under. Based on the success of fintech, insurtech looks to disrupt the conventional insurance industry in a host of ways. A handful of startup companies have sprung up and are offering peer-to-peer insurance as one part of the insurtech model. Peer-to-peer insurance functions differently than traditional insurance. Traditional insurance focuses on centralized risk pooling. Individuals pay their premiums for coverage in the event of issues or accidents involving apartments, houses, cars. If the unexpected does…