THE RISE OF DISRUPTION IN INSURANCE INDUSTRY
If everyone is trying crowdsourcing, how about trying to use the crowdsourcing practice in insurance to offer an access to a risk capital that is budget friendly? Why not offer rewards to policyholders for policies that are unused?
Friendsurance, a Germanybased company launched back in 2010 utilizes a peer-to-peer concept for insurance. This is mutualizing similar risk amongst a group of friends (self-selected) and rewarding these groups with bonuses in the form of cash at year’s end every year, but only if they remain without claims. Through a fund association, the group manages small claims. It also has an insurance company, which backs the arrangements for larger claims. A premium is paid by each member of the group. A part of this is carried forward to the fund that covers small losses. Another part of this premium is offered to a regulated insurer offering the insurance policy of group to take the risk for bigger exposures.