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.