Other parts of this series:
Following the Efma-Accenture Innovation in Insurance Awards, this is the final post in my series on emerging insurance trends. You can catch up on earlier parts in the series here.
The sharing economy was born out of people’s desire to have more agency in their consumer lives, to engage with people and products in more meaningful ways, and to challenge the traditional one-size-fits-all retail paradigm. From Airbnb to tool libraries, housing, and childcare, consumers are increasingly willing to share with one another to maximize their experiences and this concept appeals to insurance customers as we found in our latest consumer survey.
Peer-to-Peer networking isn’t a new concept, though it is an exciting new trend in insurance. Leading insurers and InsurTechs are discovering that customers are also willing to share risk and benefits, and they are taking innovative steps to become Peer-to-Peer Network Orchestrators. As with the other insurance trends I have discussed in this series, the P2P model leverages the abundance of data and analytics to pool clients and potential clients together into groups.
Carriers add value to P2P risk pools by facilitating their formation, providing the reassuring security of their brand, and then providing claims and policy servicing together with a backstop in the case of large losses. Here are some examples from this year’s Efma-Accenture Innovation in Insurance Awards 2017 entrants of organizations that use peer-to-peer customer pools to engage with customers and provide care.
Australia’s Prince Insure is an InsurTech startup specifically for professionals. It pairs member associations and provides liability insurance specific to that member group. The goal is to have members interact positively with peers to help reduce behaviours that can lead to claims.
India’s HDFC ERGOGeneral Insurance’s community portal is an online community where clients can get advice from one another, discuss their experiences, and share information about non-life insurance. Membership is made up of insurance experts, customers, and potential customers who come together to provide authentic, user-generated advice
In Colombia, ‘Wesura’ is Suramericana’s P2P insurance innovation that facilitates a private community of friends, colleagues, and family who share risks collectively. The community-based insurance model rewards positive risk behaviour, underwriting, and claims with cash. Wesura’s private communities are allowed to approve claims without the approval of the insurance company.
Community members use self-serve services, from underwriting and claims to settlement. Suramericana reports an increase in digital sales across lines of business where the company was not previously successful, including mobile devices, camera, computers, bicycles, tablets, and other electronic devices.
Throughout this series, we’ve seen powerful examples of the top innovation trends in insurance. I invite you to reflect on ways in which AI can help your organization apply these principles in your own innovation strategy.