P2P Insurance Startups Capitalizing on the Power of Virtual Communities
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.
Bitpark is a P2P insurance platform in cryptocurrency yet to be launched. The platform will be specially adapted to small payoff and short-term insurance, providing a platform suited for casual use. Bitpark aims to have insurance companies become part of the process as well. All participants can view the balance and transaction history at any time. For security, funds can only be sent to fellow participants, and multiple participants need to sign in the order for payment to be sent.
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.
Cycle Syndicate is a protection platform for bikes fueled by friendship. While it is not an insurance company itself (this means that full payouts cannot be guaranteed), Cycle Syndicate works because it is invitation-only and all syndicate members are connected through trusted friends, colleagues or club members. However, if a member chooses not to make their contribution to a valid claim, there would be no legal recourse against them and the claimant would lose out on that contribution.
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.
Dynamis is a smart contract for peer-to-peer insurance running on the Ethereum platform. It provides supplementary unemployment insurance by using the LinkedIn social network as a reputation system. Applicants for a new policy can use LinkedIn to verify their identity and employment status. Claimants can use their LinkedIn connections to validate that they are looking for work. The exercise of one’s social capital within one’s social network enables participants to obtain a new policy or open a new claim.
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%.
Gaggel is a social network self-insurance platform that makes it easy for people to set money aside for potential future losses and share some of the risks with people you know and trust.
Gather is a P2P insurance platform for small businesses. Gather empowers business communities to self-insure, and coverage is offered through a captive which is owned by the businesses it insures.
Givesurance provides charities with a regular stream of donations from their supporters who have either already donated or maxed out. Charities can create a campaign on Givesurance and reach out to their donors or integrate the Givesurance donation wallet on their website through an API.
Glow First is a not-for-profit program for couples who just started to embark on their conception journey. The program helps make treatment affordable by letting couples to “pool” their risk with a large group of healthy couples.
insbee has developed Asia’s first social P2P car insurance platform that rewards car owners for responsible driving and provides a more engaging customer experience for policyholders. The company is a dedicated online platform distributing insurance policies from partnering insurers. Customers are introduced to a “No-Claim Rebate” (NCR), which is cash back to the policyholder at the end of the policy year if no claims are made.
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.
PeersMutual Protection is a stealth-mode InsurTech startup claiming to be redefining insurance with a mutual guarantee.
Prince is an early-stage InsurTech startup looking to innovate the affinity/professional lines space worldwide through a technology platform. The company is currently developing a professional-to-professional insurance platform, based on the peer-to-peer insurance concept. Prince, in partnership with professional member associations, will provide professional liabilities insurance to professional communities and bring professional communities together.
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.
TongJuBao is a P2P risk sharing platform. It establishes a community of shared interests and social relations among Internet users, thereby spreading mutual assistance.
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%.
Uvamo works as a P2P insurance marketplace where both insurance seekers and investors planning to invest in the insurance sector come together. The company leverages technology and replaces the traditional middleman, thereby providing lower premiums to policyholders and attractive risk-adjusted returns to investors. Uvamo’s online data and technology allow to quickly assess the risk of the desired insurance policy and assign appropriate premiums.
Versicherix is building Switzerland’s first P2P insurance platform. Policyholders form groups with particular interests and their own fund for payment of damages. For excess claims, Versicherix’s own insurance fund is called upon. It will be possible to hold shares of the Versicherix fund by anyone, even the classic insurance industry can participate.
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.