Insurance is essential in most people's lives. The masses cover the risk we as individuals cannot carry by ourselves. Yet most of our insurance premium is used for small accidents like a cigarette burn in a blouse or a lost pair of sunglasses. Friendsurance goes back to the cooperative nature of insurance.
This social insurance works like this: First you pitch an insurance policy and add friends to your account. Every friend provides a certain amount -- $20, for example -- whenever you have an accident. In turn, you promise to support them for the same amount if an accident happens to them. Your friends cover damages for small claims.
By adding 10 friends, you can be supported for the first $200 of your claim. This way the insurance only has to cover the amount above $200. The premium you pay is only for large claims to keep your premium low; what's more, fraud is taken out of the equation and lowers the premium even more.
Cooperative Insurance Coverage
At Friendsurance, Your Friends Cover Small Claims
Trend Themes
1. Social Insurance - Friendsurance offers a cooperative insurance model where friends cover small claims.
2. Peer-to-peer Insurance - The concept of adding friends to an insurance policy to share the cost of small claims disrupts the traditional insurance industry.
3. Fraud Reduction - By involving friends in the insurance process, Friendsurance reduces the risk of fraud and lowers premiums.
Industry Implications
1. Insurance - The insurance industry could incorporate cooperative models like Friendsurance to offer more affordable coverage options.
2. Social Networking - Social networking platforms can explore partnerships with insurance companies to facilitate peer-to-peer insurance models.
3. Fintech - Fintech companies can develop innovative fraud prevention solutions to help reduce risks and lower premiums in the insurance industry.