UPFRONT
EDITORIAL
Diving into the sharing economy
S
till not used to writing ‘2020’ on your correspondence yet? The year still sounds futuristic – but the reality is that most of our fanciful visions of the ‘space age’ are already here, from driverless cars to artificial intelligence to 3D printing. Indeed, one concept that the insurance industry still hasn’t come to terms with has actually been around for close to a decade: the sharing economy, which was crowned one of the ideas that would change the world by Time magazine in 2011. The concept hit the headlines again toward the end of last year when Uber lost its license in London after it was revealed that some 14,000 journeys had allegedly been uninsured. While that controversy was more about Uber’s issues with unauthorized drivers, it’s still indicative of insurance’s struggles with the concept. By its very nature, the sharing economy – from ride-hailing for a journey home to renting out your home on Airbnb – is a minefield for the sector, as it blurs the distinction between commercial and personal lines. Generally speaking, sharing economy platforms claim to be a go-between for the provider and the consumer – and absolve themselves of liability. It’s a contentious point of debate: Should the
Those insurers able to grasp the concept of the sharing economy and create services that meet this need have a massive opportunity consumer bear responsibility, or should the platform take the hit when things go wrong? It’s this lack of clarity that’s putting insurers in a tough spot. Still, those able to grasp the concept of the sharing economy and create services that meet this need have a massive opportunity. According to a report from Lloyd’s, 71% of consumers would be more likely to use sharing economy services if they came with insurance, and 70% said they’d be more likely to share their own assets. Plenty of startups have grasped the concept, while mainstream insurers are slowly catching on – but as usual, it’s those that act fastest that will reap the rewards. For brokers, meanwhile, it’s about educating yourself quickly to explain what’s out there and positioning yourself as an expert in an exciting field. It might be a sharing economy, but there’s plenty of business to be selfish about. The team at Insurance Business America
www.ibamag.com MAY 2017 EDITORIAL
Managing Editor Paul Lucas Editor Bethan Moorcraft Journalists Alicja Grzadkowska, Nicola Middlemiss, Ksenia Stepanova News Writers Lyle Adriano, Terry Gangcuangco, Roxanne Libatique, Gabriel Olano Staff Writers Ellen Burkhardt, Tom Goodwin, Kasi Johnston, Libby MacDonald, Ryan Smith Copy Editor Clare Alexander
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