Finansliv, Sweden: Cognizant’s Country Manager for Denmark Says Innovative Insurers can Embrace the Sharing Economy with Right Data Analytics Capabilities

“The rise of the peer-to-peer market model offers numerous advantages for customers,” says Thomas Djursoe. “It has made it easier for people to become entrepreneurs by using their possessions to supplement their incomes but how does insurance fit into this new, disruptive business model as the sharing economy has created a situation where high insurance rates often eat away at the profit margins for sharing companies?” Excerpts:

“With the proliferation of services based on the sharing economy comes the need for entrepreneurs to be insured, which represents both a challenge and an opportunity for traditional insurers. While the service of disruptors now includes some insurance or damage compensation guarantees of sorts, sharing economy entrepreneurs are also required to have their own personal insurance coverage. Traditionally, personal insurance policies for homes or cars were meant for individuals or families looking to insure their property for private use. Services based on the sharing economy bring about the need for policies that, like commercial insurance schedules, also cover customers.

The proliferation and diversification of sharing economy services increases the need for equally innovative insurance products. Partnerships with sharing economy companies, from car-rental service FlexiDrive to peer-to-peer item rental platform Rentl, can open additional distribution channel for insurers. Customers want to be able to purchase adequate coverage when setting up a user account or with each and every transaction.

With the right data analytics capabilities in place, insurers can offer next-generation insurance policies that are both flexible and competitively priced, cater to pay-per-use customers, include a combination of coverage including assets at multiple locations, and can be purchased instantly. Doing so will allow innovative insurers to fully embrace the sharing economy and gain ground in a host of new and dynamic markets.”

Click here to read the article in Swedish.