2016 NIBA Convention covers insurance and the disruptive effects of the sharing economy

This year’s NIBA Convention will see presentations on changes the sharing economy will bring to the world of insurance from trailblazers Geoff Stooke and Matthew Denman.

Stooke is the co-founder of start-up Spacelli, the peer-to-peer self storage marketplace as well as the managing director of insurance broking firm Modern Risk Solutions. Denman is the general manager of Uber Victoria.

The peer to peer sharing economy is here to stay. Most industries, whether they like it or not, are going to be affected by it and the way we do business will change in the coming years. The insurance industry is one industry that will be greatly affected and the effect won’t just be limited to the challenges sharing businesses face in accessing insurance services that other businesses take for granted.

The impact of the sharing economy will not just be about businesses outside of insurance, such as Airbnb and Uber, but peer-to-peer insurance is on the rise with businesses such as Friendsurance and Lemonade. Lemonade is a start-up that has begun to sell property and casualty insurance to New Yorkers this spring. It won’t be too long before these types of businesses offer peer to peer insurance in the Australian market.

The rapid growth of the sharing economy offers opportunities and challenges for a variety of industries, but the insurance industry has been somewhat slow on the uptake. Insurance is based on risk modeling and actuarial science and sharing services are a new, disruptive model which has so far seen explosive growth. Therefore, many insurers have taken a slow and cautious approach while others have struggled to develop solutions for this new dynamic of consumption and ownership. In the coming years the world of insurance broking will also be see transformation at a break neck speed, the collaborative model will threaten the traditional understanding of broking and only the extraordinary will continue to thrive.

Earlier this year a paper on collaborative economy released by Minister for Innovation and Better Regulation Victor Dominello acknowledged the importance of the collaborative or peer-to-peer sector and said international experience showed that where governments have embraced the collaborative economy and adopted sensible regulation, it has provided a significant boost for local startups and entrepreneurs.

“Digital innovation is transforming the way people do business in every city and every country around the world. The reality is the collaborative economy is here to stay,” he said.