How P2P is becoming a
market standard
April 2017 | Berlin
Quick overview Friendsurance
2010
Team: 90 from 20 nations
founded
Berlin / Melbourne
680€ /
84%
cash-back
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> 100,000
customers
First
mover
P2P
#8 / #1
website
traffic
1
Some impressions
Quelle: Arial 9pt
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Our approach: Peer-to-peer layer that covers small claims
Small claims
Large claims
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Covered by
social network
Covered by
standard insurance
3
P2P reduces cost of insurance significantly
Typical cost build up of P&C insurers
„Unnecessary rest”
Less cheating
 fraud down
 Fraud 
 Bad risk 
 Small Claims 
 Commission 
 Admin 
 Tax 
– 40%
Small claims shifted away from insurers
 fewer loss and admin cost
Part of insurance privatized
 less tax and commission
Large Claims
BEFORE
Friendsurance
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Personal groups
 better risk
WITH
Friendsurance
4
Cost savings are turned into cash back of up to 40% for customers
Normal insurance
Friendsurance concept
Up to 40% cash back
User has an individual contract
with a provider of her choice.
User adds the Friendsurance concept.
User gets a cash back of up to
40% if she and her group stay
without claims (actual saving after
claims1: 30%, 2013-15).
Price and coverage are the
same as usual.
That‘s also easily possible for existing
contracts.
There is no downside.
1. Private liability, household & legal insurance
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5
Impact is expected from industry experts – and is starting to show
Expectation by insurance experts
„Will P2P insurance change customer behavior and
thereby claims ratio?“
52%
42%
Confirmed for Friendsurance:
Average claim frequency well
below market average.
6%
Significantly
(>15%)
Marginally (<5%)
Not at all
Source: Poll by „The Digital Insurer“ among insurance experts, Feb 2017
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6
P2P insurance companies are spreading throughout world
Source: Friendsurance research, March 2017
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Different approaches to P2P exist
Risk
Carrier
?
Position in
value chain
Intermediary
Small
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Size of claims that
have impact on peers
Small
& Big
8
P2P should be part of an overall strategy to better serve customers
Information
Advice
Purchase
Optimize
Handle
claims
Property & casuatly insurance
Life insurance
Health insurance
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Accordingly, P2P is starting to be used as general term for innovation
Definition of P2P insurance
Direct connection
between insurance peers
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Indirect connection
between peers
Digital, user-centric
innovation along
value chain
10
Outlook
Hypothesis 1:
P2P will not thrive as a stand-alone approach, but as part of integrated approach to improve
price, transparency and convenience of insurance.
Hypothesis 2:
Apart from the different players, the approaches will also be different in each market.
Hypothesis 3:
The segment will consolidate. Less because of network effects, but more because of general
challenges in scaling insurtech businesses.
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