How Sharing Economy is shaping the future of Insurance

Sharing economy has the potential to provide new pathways to insurance companies.

According to a recent report, only in the UK sharing economy will grow at a rate of 30 percent per year over the next 10 years. Europe is no exception. Luckily for the insurance industry, the success of the sharing economy largely depends on protecting peoples’ items in order to secure their trust. That’s why it may be the case to study the strategies used by insurance startups to grant innovative services.

Along with big organizations such as Airbnb and Uber, many companies offer renters home insurance powered by tech.  This kind of startups uses artificial intelligence and chatbots to deliver insurance policies and handle claims for its users on desktop and mobile without employing insurance brokers. A more fast and simple way to stay near the costumer which is one of the fundamentals of the sharing economy apps.

Nowadays many startups are in fact making insurance more customer-friendly using a peer-to-peer model which is incredibly innovative. P2P insurance, for example, connects groups of customers and facilitates a yearly cashback when they and their connections remain claims-free. As claims are made, the cashback decreases, for the customer and their connections.

The strength of these kinds of new insurance services is also to grant coverage for “anything that’s important to you at any time with just a few clicks”. They just need your name, address, email and information about the product. A new approach that it’s changing also the client experience. Technology enables customers to manage their insurance portfolios digitally via smartphone or Pc. So they basically save their time and they have the feeling they can manage their portfolios freely and in a better way. That’s why many newborn organizations are testing innovative robot-technology, to grant personalized insurance. These examples clearly demonstrate the ample opportunities that, thanks to technology, exist for insurance organizations in the sharing economy.