Fintech Genome

Insurance Marketplace Model - winning the future?


#1

Insurance is a pipe business. Even reinsurers and capital markets are no more than providers in the chain. A lot of risk management efficiencies, UX, new products and infrastructure productivity can be brought today though insurtechs, cloud computing and data analytics from myriad of data (multiplied by IoT). This can be further expanded through open insurance protocols, a sort of PSD2 for insurers that will inevitably happen sooner than later.

What can bring a marketplace of the likes of Airbnb to the insurance industry? The marketplace platform business benefit from economies based on demand, hold no underwriting risk, they manage the relationships within the marketplace.

What are the most likely affected products, life, non life? Is it easier for standard products or customized new solutions? What are the customers that could be more receptive products? Where should be launched, a new co startup or should an incumbent launch it?

Is there anyone in the market who is looking to develop anything similar?


#2

I have been working on exactly this for a few years (with no resources or partners).

Watching the market I have observed a few folks working on this platform angle.

KarmaCoverage.com (me) A pure P2P platform.

These guys who are trying to do an ILS platform. I spoke to them and I actually see some synergy between KarmaCoverage and their model. The two could be stacked.

& this group I think out of Chicigo area, that was pursuing a model that is similar to the P2P model used in the Lending markets (their background).

I have my doubts this will work, but I can see an investor buying the pitch easier than a true P2P model pitch.


#3

I like the model building on top of the insurance data to ultimately underwrite synthetically. There are big pools of money out there and insurance risk should be no less than any other investable asset. For this very reason an insurance marketplace with open data is a foundational stone.


#4

2 points

  1. KarmaCoverage is the “open data” market place. One of the principals of KarmaCoverage is that we are “partners with our users” in monetizing their data. I expect that at scale, we may not even need users to pay into the system, because the money that they “pay in” with will be obtained via monetizing their data.

  2. ILSs have a risk profile that is not correlated to market trends, interest rates, or economic cycles, which makes it a wonderful investment asset if a portfolio manager is trying to diversify out of Macro risks.

Shoot me an email karmacoverage@gmail.com if you want to connect. You are thinking about this correctly.