Development of the sharing economy: how does it impact insurance?

The report, submitted by French Member of Parliament Pascal Terrasse to the Prime Minister on 8 February 2016, is the first attempt to grasp the key issues relating to the sharing economy. The report contains 19 proposals that seek to boost the sharing economy for the benefit of the economy as a whole. Some of these proposals have specific implications for the insurance sector.

Collaborative platforms and insurance

Source : M.A News – 01/2016

Numerous internet contact platforms allow private individuals to rent, share or exchange goods and services: person-to-person house or flat rentals, car-sharing, vehicle hire, swapping or reselling of transport and concert tickets, buying and selling of second-hand goods, hiring of equipment and capital goods, person-to-person support services (gardening, home study lessons), etc.

The boom in these collaborative platforms is creating new opportunities for insurers, especially in the general insurance segment. These platforms are contributing to these opportunities in different ways:

• by insuring the services offered to users. Insurers have developed new "pay-per-use" insurance models, particularly for insuring different goods hired on a person-to-person basis (e.g. vehicles);
• by implementing a targeted communication strategy (by sponsoring certain platforms);
• by financing the launch of start-up companies.

Terrasse Report proposals concerning insurance

The Terrasse Report contains 19 proposals and those relating to the transparency of information have specific implications for insurance.

One proposal, for example, concerns ways to provide clear, intelligible and accessible information for users in order to save them from voiding any cover:

• insurance-related information could initially be required by asking users to check the extent to which their personal insurance policies cover the intended use;
• the next step could entail informing users about the insurance policies offered by the platform, with regard to both coverage and prices.

The report also proposes a requirement for platforms to publish a detailed breakdown of the components of the total price to be paid by the user, in a clear and accessible manner. At the very least, the platforms' terms and conditions should state how much of the total amount charged by the platform will be paid to the service provider and retained by the platform, by listing ancillary costs such as any insurance taken out.

The Crédit Agricole group incorporates new uses associated with the development of the digital economy

In the framework of its Medium-Term Plan for 2016-2020 on incorporating new uses associated with the development of the digital economy in general and the boom in collaborative platforms in particular, the Crédit Agricole group will be capitalising on the Villages by CA initiative and focusing on:

• innovative start-up companies that it will be supporting
•  its partnerships with FinTech and InsurTech companies.

In this way, €200 million will be invested in start-ups and FinTechs between now and 2020.

Crédit Agricole Assurances is also very concerned by the sharing economy. The Innovation Challenge of Crédit Agricole Assurances launched early this year 2016 has enabled a large number of its employees to offer innovative solutions on the topic of "The insurer, actor of the sharing economy" but also on the theme "The insurer in my pocket."

Sources: Argus de l’assurance – Les Echos – CBanque – Consocollaborative – Crédit Agricole Assurances