When you have an insurance policy it usually covers a variety of scenarios where you might need financial compensation. Most people are covered the same way. They have a standard policy that covers the most likely things. They often pay a high premium and rarely think about it. To most people an insurance policy is just one of those things that exist in the hinterlands of your mind.
However, people need insurance like they need sleep. Therefore, it is perhaps no wonder that entrepreneurs in the sharing economy are beginning to rethink this huge market. So below you will find a list of sharing economy ideas that has the potential to disrupt it for good.
1. Online Insurance Grouping
This concept illustrates the impact that group mentality can have on your policy.
1) Imagine that you and group of friends hold a policy as a group online.
2) You all chip in to the policy, some of the money going in to a fund, the other part going to the insurer.
3) Damages are paid out of the group fund to group members who have accidents.
4) If the damages exceed the deductible limit, then the insurer is called in.
… And here comes the best part,
5) If nobody in the group has an insurance claim, then the policy holders can get their money back at the end of the year, or front the money for the following year.
2. The “One Group, One Policy” Method
This idea is really simple too. All it does is leveraging the power of the many for a better insurance deal. Let us say that you need a policy for a specific scenario. You might need a car insurance, and just that. You then group up with strangers, who can be located anywhere in the world but are in need of the exact same policy as you.
Then you approach your insurance company of choice and they risk asses you. For instance, you might all be drivers under age 25 looking for a car insurance. If you and the rest of the group members approached an insurance company individually, you would pay a high premium. But by signing up for a single policy as a group, the company gets a bunch of new sign-ups if they reduce the premium price.
Unfortunately we are not aware of any companies that are pursuing this line of thinking but if you know any platforms operating this way please let us know! We would love to hear from you.
3. Blockchain and Digital Identity Verification
This last item on the list is not an insurance concept like the two above. Rather, computer-based network verification technologies such as Blockchain and other digital identity verification programmes will play a crucial part in insuring groups of people through sharing economy platforms.
In plain speak, the only way an insurance company can insure a group of people is of course if it can be sure that the individuals in the group are who they say they are.
Blockchain technology and ID-verification systems like ONENAME have the potential to rival government identification systems. This is because it can quickly verify identities of people all over the world. Only creativity sets boundaries for the people rethinking something that we all need; insurance.
The sharing economy provides the opportunity for people to reclaim control over policies, while finding cheaper and equally effective insurances for themselves and group members alike. It is therefore likely that we will see more sharing economy platforms in the insurance business in the years to come.