What’s left for insurance companies in the age of the P2P Economy
With our second webinar around the corner, we decided to look back to our first webinar where Ales Tomazin discussed the role of insurance in the age of a peer-to-peer economy. Here’s what we learned.
Customers have accepted the current system — but that doesn’t mean they are happy with it.
Motor insurance is a necessary purchase, in most countries, you can’t drive without motor insurance, but while customers might spend weeks looking at different types of cars, all kinds of insurance look the same to the customer. Insurance is compulsory, and the industry is a conservative, highly-regulated one; with high barriers to entry. Without the need for innovation, insurance companies have grown complacent, putting any effort into new services or the user experience.
But new ideas are coming, driven by customer demand
Aleš believes that change is inevitable in insurance, but the industry hasn’t quite embraced change yet. Fundamentally, the core product of coverage will remain the same, but by adopting new processes and products, insurance companies can get and stay ahead. Remember not too long ago, Amazon was an online book store!
The Ecosystem Approach to insurance
An Ecosystem is a group of people with a common interest or a shared goal.
It’s easy for a tailor to make something specific for a group; just think of a uniform for a sports team. So why can’t we have personalization in insurance? By banding those with similar interests or aims in groups, whether it be due to profession or same interest, insurance companies will be able to tailor services, offering customized prices, exclusive offers, and additional products.
Social Proof as a P2P model
Peer to peer was the original insurance model. A group of people with similar interests, often merchants, would pool their resources together and help any member of the group that fell on hard times. Why did those people trust each other? Because they knew each other!
Through social proof, VouchForMe, allows insurance companies to recognize good drivers, by asking their friends and family to assess their driving style. If your friends trust you, we trust you.
By integrating with VouchForMe, insurance companies can recognize safer and profitable drivers, while good drivers can access personalized deals that reflect their driving habits. Society benefits too, as our model, promotes careful driving.
Don’t be left out
It’s taken us a long time to get here, but insurance companies are getting on board. Don’t be left on the platform! Otherwise, they’ll be nothing to separate you from the competition.
Our Next Webinar — Coming Soon
On the 23rd of April at 10 AM CET, Aleš will be presenting P2P in detail, You’ll learn:
- The roots of the P2P model, what it really is
- Differences between traditional insurance and P2P insurance.
- Opportunities and positive sides to the P2P model
- Risks and challenges for market and insurance companies when implementing the P2P model
- P2P initiatives and why are people ready to take on more responsibility
- Social proof as a P2P models
Click this link to register.
See you there!