How the rise of sharing economy affects insurers

The sharing economy development has shaken up the insurance industry

sharing economy

How the rise of sharing economy affects insurers. Source: shutterstock.com

GlobalData reveals that the sharing economy has pressurized insurers to innovate and quickly adapt their products. However, gaps in coverage still exist, as long as the sharing economy keeps on growing strongly.

The report reveals that the sharing economy has particularly increased in home-sharing and shared-mobility models, despite its presence across numerous other categories. As a result, it led to a wave of innovative insurance products. What is more, it has made insurers to adopt new delivery methods to provide fast transactions.

Companies such as Airbnb and Uber have largely revolutionized the hospitality and transportation industries but their quick growth has posed challenges to insurance. Typically, the industry had distinguished between personal and commercial products, but the sharing economy blurs the lines. Marketplace platforms are enabling consumers to share their belongings or services for commercial activities
Beatriz Benito, Senior Insurance Analyst at GlobalData 

The data shows that the global insurance industry exceeded $6.2 trillion in premiums in 2018. However, those insurers who don’t adapt to emerging models in the sharing economy risk losing part of their share.

It has also been revealed that some insurance firms have started adapting their products to better match customers’ requirements.

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