Yesterday saw the launch of our joint report with Lloyd's of London on the insurance opportunities and challenges presented by the fast-growing global sharing economy. The report contains lots of ideas and numbers to get stuck into and I'm excited about discussing them in the market. A big thank you to all the SMEs who took part in the research and generously shared their views and plans for the future.
Taking a step back, and with time to reflect on the report having finished writing it a while back, I ask myself my boss's favourite question: what's the one line summary? Here goes...
The sharing economy is a large and fast-growing web of transactions where, in our definition, consumers, rather than corporates, share their assets, possessions and skills to earn a profit. This presents opportunities to insurers because sharing, like any commercial activity, contains an element of risk and reward and parties to sharing want protection. Challenges centre on the platform-intermediated nature of the market and the need for dynamic covers that switch between commercial and retail protection. To-date, InsurTechs backed by large incumbents have been at the forefront of innovating new sharing economy insurance products and services.
I failed miserably in the one line challenge, sorry Margaret. But I'm very proud of the report!
A study on how the collaborative economy is reshaping insurance products