Peer-to-peer: How to make use of your social network
Even if you’ve never heard of a peer-to-peer (P2P) network, you’ve probably made use of one, in computing P2P networks allow computer terminals to link up, and equally share and exchange workloads. If one terminal fails, the others pick up the slack, ensuring the process is never interrupted. Just like in the diagram below. So can people make use of their social networks in the same way? And what are the implications?
P2P for insurance
For insurance, Peer-to-peer is one of the oldest models. Participants pool their resources together, and funds in this pool are used to compensate any member of the network that suffers a loss. Thanks to technology P2P is coming back for insurance as a high-tech, transparent and low-cost alternative to insurance.
Recently P2P has exploded in the Chinese market. Better known in China as “mutual aid” P2P is being driven by huge firms including the e-commerce giant Alibaba. In the last three years in China alone mutual aid has attracted 20% of the Chinese population, with 260 million users in total. P2P is causing huge challenges to insurance companies in China, and insurers worldwide are watching China closely.
P2P isn’t coming, it’s already here! By incorporating VouchForMe’s P2P products insurers can stay ahead of the curve.
As we’ve discussed recently, freelancing is on the rise, as more and more people are ditching the 9–5 in favor of flexible employment, but with this move away from traditional employment comes an added risk. There’s no sick pay for freelancers and insurance premiums are increasing. Can a peer to peer network be the answer? We believe it can.
Your social network is a powerful tool, and networking can help you land clients, learn new things and get you noticed. Since freelancers are all in the same boat, why not make use of that network to protect you when times get tough.
VouchForMe’s income protection is a great safety net for freelancers, by utilizing your P2P network, freelancers can pool together and build a security fund, meaning that if you get ill or injured and can’t work for a period of time, you’ll still receive a monthly income. A great P2P low-cost solution for entrepreneurs, or just anyone looking for more financial security.
Peer-to-Peer Car Insurance
“All for one and one for all”
At VouchForMe we believe that the old model of insurance is outdated and fast falling out of fashion, relying on statistics such as gender, age and the type of car you drive. Why should your premiums be dictated from an algorithm? Wouldn’t it be better if insurance companies could speak to the people that know you best?
By leveraging their peer network, VouchForMe users’ can back up their friends and family, placing confidence in their driving ability. A financial commitment is made and in the event of an insurance claim, the guarantor pays a pre-agreed amount towards the driver’s excess. This ensures that vouchers will only guarantee responsible drivers’ while the psychological bond of trust between users’ encourages even safer road use. With VouchForMe users can build a strong peer-to-peer network of responsible drivers.
VouchForMe comes to London
Our co-founder Matt Peterman will be on stage in March, presenting at Insurance innovators on the 11th of March and Insurtech insights on the 17th and 18th March in London. Come along and learn about the evolving role of P2P in the insurance industry. See how P2P models will disrupt the insurance industry, and learn how to use P2P to create a sustainable business model.
See you there!