Sharing Economy in Insurance - Thematic Intelligence
Summary
In response to the growth of the sharing economy, the insurance industry has had to innovate as the lines are blurred between personal and commercial use. Flexible and on-demand insurance products – facilitated by the evolution of technologies such as big data, artificial intelligence, and the Internet of Things – have become highly desirable in the sharing economy. These products offer commercial risk management without the unaffordability that would come for many individuals with purchasing a full commercial policy. Peer-to-peer insurance is still yet to fully take off although an increasing number of startups are applying the model to reduce the perceived inefficiencies in traditional insurance. This is particularly effective for targeting younger demographics, who are also more likely to be involved in the wider sharing economy.
The rise of the sharing economy has brought about two separate areas for insurance innovation. New products have been created to cover owners sharing assets, or renters borrowing said assets. This has been necessitated as personal property, when insured with a personal policy, cannot be used commercially. These new products can take various forms depending on the asset shared and the platform or company used to facilitate the transaction. The second area for innovation driven by the sharing economy is P2P insurance. This is, in essence, the use of sophisticated technology (such as blockchain) to return insurance to its original model of mutuality.
Scope
- Insights from GlobalData’s 2022 UK Insurance Consumer Survey indicate that younger consumers (Generation Z and millennials) are more likely to use the sharing economy. 28.7% of Generation Z and 20.5% of millennials have used, are using, or intend to use the sharing economy.
- The sharing economy is also more widely utilized in London than the UK average, with 28.9% of London dwellers indicating that they either use, will use, or have used the sharing economy, compared with the UK average of 14.5%.
- Most leading P2P platforms offer insurance through an embedded model in collaboration with an insurer. For insurers, this creates access to new markets and target groups.
- Identify leaders in insurance provision for the sharing economy.
- Understand how competitors are looking to break into the market.
- Identify opportunities in a growing market where insurance provision can be made simpler for the customer.
- Determine how insurance is provided in different segments of the sharing economy.
- Executive Summary
- Players
- Thematic Briefing
- What is the sharing economy?
- How does the sharing economy work?
- The benefits and drawbacks of the sharing economy
- Insurance in the sharing economy
- P2P insurance
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry Analysis
- Market size and growth forecasts
- Airbnb is the most frequently used sharing economy platform by asset owners
- Inflation and financial concerns are driving consumers toward the sharing economy
- Younger consumers are less likely to purchase insurance when they share an asset
- Use cases
- Shared mobility
- Shared property
- Sharing economy-specific insurtechs
- P2P insurance
- Timeline
- Signals
- M&A trends
- Company filing trends
- Hiring trends
- Value Chain
- Shared assets and services
- Infrastructure
- Cloud infrastructure
- Data management
- Sharing economy platforms
- Shared mobility
- Shared property
- Shared financial services
- Shared professional services
- Companies
- Public companies
- Private companies
- Sector Scorecards
- Non-life insurance sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Technology trends
- Table 2: Macroeconomic trends
- Table 3: Regulatory trends
- Table 4: Shared mobility
- Table 5: Shared property
- Table 6: Sharing economy-specific insurtechs
- Table 7: M&A trends
- Table 8: Public companies
- Table 9: Private companies
- Table 10: Glossary
- Table 11: GlobalData reports
- List of Figures
- Figure 1: Who are the leading players in the sharing economy in insurance theme and where do they sit in the value chain?
- Figure 2: The sharing economy model
- Figure 3: The P2P insurance model
- Figure 4: The sharing economy is more frequently used by younger consumers
- Figure 5: Shared property platforms are generally the most popular among asset owners
- Figure 6: Over 50% of UK consumers stated that inflation has directly influenced their decision to share an asset
- Figure 7: Consumers across the world are worried about the financial implications of inflation
- Figure 8: Over two in five consumers are not thinking about or purchasing insurance before sharing their asset
- Figure 9: As a broker, Friendsurance offers simple policy comparison for customers
- Figure 10: Versicherix is aiming to use sophisticated technologies to transform the insurance industry
- Figure 11: The Sharing Economy in Insurance story
- Figure 12: Sharing economy-related mentions in insurance company filings, 2018–22
- Figure 13: Active job vacancies relating to the sharing economy in insurance theme, Jan 2020 – Dec 2022
- Figure 14: The sharing economy value chain
- Figure 15: Shared assets and services
- Figure 16: The sharing economy value chain – platforms layer - Shared mobility leaders and challengers
- Figure 17: The sharing economy value chain – platforms layer - Shared mobility leaders and challengers
- Figure 18: The sharing economy value chain – platforms layer - Shared financial services leaders and challengers
- Figure 19: The sharing economy value chain – platforms layer - Shared financial services leaders and challengers
- Figure 20: Who does what in the non-life insurance space?
- Figure 21: Thematic screen
- Figure 22: Valuation screen
- Figure 23: Risk screen
- Figure 24: Our five-step approach for generating a sector scorecard
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