Market Snapshot: Crowd-based Insurance Startups on the Rise

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Above Image: Crowd Companies has identified more than a dozen crowd-based insurance startups emerging from financial industry hotbeds like London, more will emerge from each region.

Crowd- and peer-based business models have impacted the hospitality industry, transportation space, financial sector, and other industries as indicated within the latest Collaborative Economy Honeycomb 3.0.

We’re now seeing the rise of a growing set of startups in the insurance industry that are enabling P2P, pro-rata coverage or crowd-based models that leverage the crowd. These emerging insurance tech startups include mostly peer-to-peer offerings, with a handful that are also improving the delivery of insurance through new technologies.

P2P insurance allows for more people to be insured by aiding underserved markets. It provides coverage for gig workers in the collaborative economy, while collective purchasing yields preferential pricing (or even funds returned) to those subscribed to peer-based insurance programs. With most of the emerging startups acting as brokers, the insurance carrier startups are still forthcoming in the insurance world. Lemonade is a clear example of this (though they’ve yet to launch).

There are several companies popping up for specialized insurance, too. From insuring cyclists to pet owners, and one Bought By Many that specializes in ‘long tail’ insurance. This means insure those items that aren’t often insured. Then, there’s Trōvthat provides ‘on-demand’ insurance, for those who want to insure in the moment by simply snapping a pic in the app, granting fast coverage. It’s coverage for when people seek access over ownership.

The map above of crowd-based insurance startups isn’t complete; there are more emerging, and we expect for each geographic region to develop their own capabilities. See the table below for additional details.

Sample of Crowd-Based Insurance Startups: 

OnSourceOn-Demand InspectionOn-demand visual inspection by a group of independent crowd workers
trovOn-Demand InsuranceOn-demand protection for belongings – home, auto, personal property. Easy to turn on/off.
Tong Ju BaoP2P BrokerTongJuBao is a P2P insurance platform that helps its users manage risks. TongJuBao was developed by QiBao Investment Consulting (Shanghai) Co., Ltd, a WOFE (wholly owned foreign entity) and is ultimately controlled by its French founder, Tang Loaec. (CB Insights)
BroodfondsP2P Insurance – CrowdfundingGroup of freelancers crowdfunding each other’s sick leave
PeerCoverP2P Insurance – CrowdfundingJoin group, pay fee upfront, users decide if claims are fair and can get up to 5x your balance to cover claims. ‘Crowdfunded cover’
MetroMilePay-Per-Mile Auto InsuranceMetromile is a car insurance startup that offers pay-per-mile insurance and a driving app. It is currently the only company offering pay-per-mile insurance in the United States.
CommonEasyP2P Insurance BrokerCommonEasy is a peer-to-peer insurance platform that utilizes the power of the crowd to collectively insure and protect material possessions, homes, and livelihoods.
BesureP2P Insurance BrokerPeer-to-peer risk sharing for property insurance, not currently launched.
FriendsuranceP2P Insurance BrokerPools users into small groups. Brokers with 60 insurance partners.
InspeerP2P Insurance BrokerUsers form small groups for auto, motorcycle, and home insurance. Users pledge to cover up to a certain amount.
GuevaraP2P Insurance Broker – AutoPools friends and acquaintances, or other small groups, for car insurance.
GatherP2P Insurance Broker – BusinessBusiness insurance shared across a group/community.
Bought By ManyP2P Insurance Broker – Long-TailWorks with insurers to develop policies and negotiate discounts for long-tail insurance needs like pet insurance, cyclist insurance, etc.
SafeShareP2P Ins Broker – Share EconDevelop insurance products and partner with sharing economy businesses to offer users and providers insurance solutions. Work to fill in the gaps of insurance for Sharing Economy providers and users.
Cycle SyndicateP2P Insurance Carrier – CyclistsBike insurance shared over a small group. Insurance held by cycle syndicate.
LemonadeP2P Insurance CarrierLemonade is peer-to-peer insurance and one of the only carriers, but they’ve yet to launch. Groups of policyholders pay premiums into a claims pool, and if money is left at the end of the policy period, they get refunds.
UvamoP2P Insurance CarrierUvamo, which plans to launch by the end of the year, aims to cut administrative costs by offering property and casualty insurance direct to consumers online. Those policies can then be diversified and grouped into a pool, which collects all the premiums paid by the policyholders. -CNBC

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