's  way of framing P2P Insurance is that it is "a form of arbitrage on deductibles" or in other words, a price play. Yann has a good point - P2P Insurance is cutting out the expensive cost of guarantees and consequent regulation. However, what we are beginning to see is that some P2P Insurers are more than this - they are creating forums for insurance innovation. This blog discusses two examples:

Wesurance is proposing to let their peers define what is covered, potentially extending beyond traditional insurance products. 

PeerCover provides another take on this. With PeerCover, coverage is determined by the majority of the PeerGroup. This trust based system creates flexibility and fairer outcomes. How is it fairer?

1. There is no need for small print, which no-one reads but which are potentially full of bad surprises
2. By not trying to define every peril, the cover is broader as some unknown unknowns can be allowed for post event. Quoting Carl Richards "..risk is what is left over, after you think you've thought of everything."

 
Want to know more about PeerCover? 
Want to see the rest of Yann's blog -see below

Allied Peers is looking to facilitate P2P insurance using 'smart contracts'

First published on Oct 14, 2014 by