InsurTech & The Sharing Economy: An Insurance Market Perspective
Sabine VanderLindenManaging DirectorStartupbootcamp InsurTech
@SabineVdL@sbcInsurTech
Sabine VanderLinden
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We accelerate Startups & Corporates too
FinTech + InsurTech IoT (data)EcommerceTransportationSmart Cities+ Mobility Digital Health
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§ 17 programs globally§ 11 cities§ 140+ corporate partners§ 400 startups§ $850k av. funding § $240m raised§ $1Bn- valuation
Bringing together OLD & NEW worlds
CORPORATES STARTUPSTHE NEXUS
Looking Ahead 109
Spinlister100+ countries
(2012)
Kickstarter+US$ 1.7 billion
pledges(Latest Available
Data)
DogVacay+20,000 listed
pet sitters(2011)
Uber260 cities
Served(2010)
TaskRabbit1.25 million
joiners 2013 (2008)RelayRides
+2,300 citiesserved (2010)
Streetbank+61,700 things
shared(2010)
Skillshare+1,000 classes
(2010)
xx(xx)
CompanyYear Founded
Vinted+14 million
clothes listings(2008)
Netflix57.4 millionsubscribers
(1997)
Elance2.5 million
employments(1999)
LiquidSpace+16,000 usercompanies
(2010)
Airbnb+37 million
nights stayed(2008)
MANY SHARING ECONOMY SECTORS— INCLUDING CAR AND HOUSE RENTAL--WILL GROW MUCH FASTER THAN TRADITIONAL RENTAL SECTORS
Sharing economy businesses using “peer-to-peer” models are growing in influence, with top performers attracting subscribers and funding at exponential rates and taking business from traditional players. While traditional rental industries are unlikely to disappear anytime soon, their growth will be sluggish. For example, while the car rental market is projected to grow at a CAGR of 2% through 2025, the car sharing market will grow more than 11 times faster
Projected Compound Annual Growth Rate for Key Sharing Economy Sectors(In % 2013-2025)
Leading Sharing Economy Enterprises Impacting Traditional Business(2014 or Latest Available Data)
Source- Upper Chart: “The Sharing Economy: Sizing the Revenue Opportunity”, PwC, 2014Sources- Lower Chart: Company websites; Literature Review
31
-10
0
10
20
30
40
50
60
70
Peer-to-PeerAccommodation
CrowdFunding/Lending
37
Online Staffing
63
Car Sharing
5
17
Car RentalsBed &Breakfast
and Hostels
Book Rentals
-5
DVD Rentals
2
Equipment
4
Music & VideoStreaming
3
23
Sharing Economy Sectors Traditional Rental Sectors
LA_PublicVersion(Bleed3175)_ENG_V22.indd 109 10/28/15 1:28 PM
Source: Looking Ahead (research 2014)
These ventures are challenging traditional business models
Peer 2 Peer CollaborativeOn-Demand
Accommodation FinanceHousehold Services
Transportation Professional Services
Segments of the Sharing Economy
Revenues & transaction values facilitated by sharing economy platforms in Europe (£Bn, 2015)
Transaction Values
Revenues
£ 3Bn (UK: £0.9Bn) £ 24Bn (UK: £7.4Bn)
P2P Accommodation
P2P Transportation
On-Demand Household ServicesOn-Demand Professional Services
Collaborative Finance
Source: PwCUK,SharingEconomyStudy,2016
The sector is expected by 30% per year over the
next 10 years, generating £18Bn of platform revenues
and £140Bn of transactions
revenues in Europe by 2025
Source: PwCUK,SharingEconomyStudy,2016
Revenues & transaction values facilitated by sharing economy platforms in Europe (£Bn, 2015)
Transaction Values
Revenues
£ 3Bn (UK: £0.9Bn) £ 24Bn (UK: £7.4Bn)
P2P Accommodation
P2P Transportation
On-Demand Household ServicesOn-Demand Professional Services
Collaborative Finance
Source: PwCUK,SharingEconomyStudy,2016
$335Bn 2025In revenues generated
By capturing opportunities within consumer and business environments that are being missed by incumbent players
Source: PwCUK,SharingEconomyStudy,2016
“The sharing economy is the value realized in taking under-utilized assets and making them accessible/ re-usable online to a community, leading to a reduced need for ownership of those assets.” Alex Stephany – The Business of Sharing
What is the sharing economy
“The sharing economy is the value realized in taking under-utilized assets and making them accessible/ re-usable online to a community, leading to a reduced need for ownership of those assets.” Alex Stephany – The Business of Sharing
What is the sharing economy
The sharing economy involves a marketplace
Buyers SellersA DigitalPlatform
Business-to-ConsumerBusiness-to-Business
Peer-to-PeerBusiness-to-Crowd
ConsumersRidersRentersGuests
SuppliersDriversProvidersHosts
For the participants, this means:
§ more flexibility§ the ability to access products and services whenever the
supplier desires§ efficient use of resources, reducing scarcity and§ a more sustainable way to consume products
§ Digital literacy§ Easy access to digital technologies§ Entrepreneurial spirit§ Acceptance for emerging creative skills§ Ability to incubate young businesses § Accelerating acceptance for sharing economy ventures
WHY?
“The vast majority of insurers have made little headway in delivering solutions for the sharing economy: just 10 % already have an offer in the
marketplace and another 35 % are only at the pilot or strategy stage. 55 % have taken no steps towards
meeting these new insurance needs, potentially missing out on a significant new line of business.”Marketforce, The Future of General Insurance 2016, special report
Leading Sharing Economy Insurance Brands
This snapshot is not meant to provide an exhaustive list
Example: MAIF – Investing Euro 125m
“By supporting their development and ambitions, MAIF intends to be the insurer of reference of the young actors of this new economy with which we share the foundations.”
Pascal Demurger, Director, MAIF group
Being successful in the sharing economy means building a business model that's
based on trust, authenticity and transparency with your customers.
“”
Trust mechanisms promote buyer & seller satisfaction
Why
• Buyers are prepared to buy goods and services from strangers
• Reduce the number of low-quality sellers
• Reduce the risk of fraud
How
• ID check• Reputational rating • Rate the experience• Messaging• Feedback scores• Incentives• Personalized services
Once trust is in place, people share and collaborate mostly for:
Social reasons “I want to meet new people”
Economic reasons “I want to save money”
Practical reasons “I want to save time”
Sustainability reasons “I want to protect the environment”
Accessibility reasons “I want to access new ways of ownership"
“The model only works when individuals and businesses are willing to collaborate”
Through genuine collaboration you can drive authenticity
“Technology is a key enabler used to empower users to make connections and eventually share”
The success of sharing economy models depends on the online platform which eases transparency amongst strangers
THESHARINGECONOMYISALSOABOUTDESIGNINGUNIQUEEXPERIENCES/NOT
PRODUCTS
“The stuff that matters in life, is no longer stuff: It is other people. It is the relationships. It is the experience.”Brian Chesky, CEO, AirBnB
THISALSOMEANSTHATTHEREGULATORSWILLNEEDTOCATCH
Sabine VanderLinden18 years of expertise in Insurance
Managing Director of
@SabineVdL@sbcInsurTech
Sabine VanderLinden
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Sabine VanderLinden
