# Academic Take on "Sharing Economy's" Impact on Peer-to-Peer Insurance



## circle1 (Sep 17, 2016)

"PEER - TO - PEER INSURANCE MODELS: SHARING ECONOMY ADDS ( NEW ) TECH TWIST TO (OLD) RISK 
Abstract: The so - called sharing economy has disrupted many industries. Examples of it include Airbnb - people "sharing" their homes by renting out accommodation to others; Uber - people "sharing" their cars by
driving others around; and DogVacay - dog lovers who "share" their home with dogs as an alternative to a kennel. Indeed, the sharing economy is making headway in the insurance industry with so - called peer - to - peer insurance. The different business models that are emerging under the peer - to - peer insurance banner are diverse - for example: Besure (Canada-based), Friendsurance (out of Germany), Gather (Washington, D.C. based), Guevera (out of the UK), InsPeer (in France), Lemonade (out of New York), and PeerCover (in New Zealand) - is testament to the fact that it's a broad category. Despite the diversity, there is a common denominator driving them. As one commentator put it, these start - ups "... want to change the relationship between the insured and insurer" and they want to "address human behaviour and the moral hazard."

The secret sauce these services are betting on is that people will act socially responsible about risk taking if they know their actions (whether it's the taking of risk or the making of a claim) will directly impact a social group or community they joined. This Trends Paper will look at: 
- What has given rise to peer - to - peer insurance
- Some specific peer - to - peer insurance business models 
- Issues related to regulation of peer - to - peer insurance services
[end quote]

http://goodwithwords.com/wp-content...y-Adds-New-Tech-Tools-to-Old-Risk-Pooling.pdf


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## tohunt4me (Nov 23, 2015)

Those who CAN,Do.
Those who CAN'T, Teach.


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## circle1 (Sep 17, 2016)

Check out _this_ passage, even the insurance industry is morphing right before our eyes!;
"Logan explains, 'in most countries, insurance is defined as providing a guarantee of payment/indemnity based on future uncertain events. PeerCover does not provide guarantees.' Instead, as he describes it, 'PeerCover is a non - discretionary trustee. Customers instruct PeerCover to deposit their money into a single non - interest - earning bank account and to pay their share of claims, should anyone in their group have a loss. Sharing and coverage depends on one's balance and the group's total balance.'"

. . . and I thought this was on-point;
"You may remember that when Uber launched in Canada, it made the same kind of argument: it's not a Transportation Network Company (TNC) - it's just a technology company whose app lets people arrange and schedule rides."


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