The Global market for peer to peer insurance is forecast to reach $63.2 Billion by 2025, growing at a CAGR of x32.6% from 2020 to 2025. The market growth is attributed to the factors such as less fraudulent claims, eschewal of traditional brokers, reduced premium or a dividend, backup of traditional insurer, shared responsibility, high degree of transparency and other.
The report: “Peer to peer insurance market – Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the peer to peer insurance market.
By Platform: Commercial Platform, Non-Profit Platform
By mode of operation: Online, Offline
By model: Broker, Carrier and Stealth
By Application: Consumer, Business, Real Estate, Others
By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)
• P2P insurance products using block-chain technology also enhance the market growth as it reduces the associated risks with it.
• Demand for more accessible and low-cost services among consumers is also tending to drive the market growth.
• APAC region is anticipated to dominatethe global peer to peer insurancemarket during the forecast period 2020-2025owing to large number of population, growing needs among people, rising industrialization and others.
By mode of operation- Segment Analysis
Online mode of operation segment held the highest market share of peer to peer insurancein 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025.Purchasing insurance online is easy, quick and typically costs less. The greatest benefit of the internet portal is that it gives the consumer an informed choice. By purchasing online, ratings and opinions about the insurer's offerings from current clients may be reviewed for valuable insight that is lacking by ordering from some other source.Online channels promote market openness of coverage and declining purchase costs as well as information asymmetries, usually correlated with greater competitiveness and social welfare.In addition, utilizing Big Data Analytics, Artificial Intelligence and Cloud Infrastructure allows to evolve from a damage recovery business.Online solutions in particular for a wider insurance consultancy service supports on how to avoid, minimize and manage risks.
By Application type- Segment Analysis
Peer to peer insurance market by applicationis segmented into consumer, business, real estate and others on the basis of application. The consumer segment is anticipated to hold the highest market share during the forecast period 2020-2025. Common consumer insurance products are car or automobile Insurance, health insurance, disability insurance, home owner insurance, life insurance and others. Peer-to - peer (P2P) insurance is a network of risk sharing where a number of people share their premiums to protect against a risk. Peer-to - peer protection mitigates is the implicit tension between a conventional provider and a policyholder because a company maintains the rates it will not pay out of lawsuits.Consumer sector poses a lot of risks and damage owing to which this segment prospers.
Geography - Segment Analysis
APAC region is anticipated to observe the significant market growth during the forecast period 2020-2025.The significance of the APAC is a perfect blend between insatiable desire for progress and deep reverence for divisions of the Region.Insurance requirements are characterized by variables like neighbourhood links, developing populations, insurance take-up, internet access and others combined. Rapidly growing mobile networking and deep community links coupled allow P2P insurance solutions theoretically the best option for roll-out security through APAC societies in the most effective way possible.Moreover, the strength of trust build-up in the model continues to drive insurance to hit uninsured areas of APAC more rapidly. In June 2018, Tokyo-based insuretech start-upJustInCase gets P2P policy clearance from the Tokyo Finance Bureau and collects $1.4 M in pre-series A. As of 1 July, the firm publicly released an insurance and new mobile application named JustInCase on the app store. The new application rate consumers on a regular basis for operating their mobile correctly so that they can earn a policy refund at insurance renewal similar to the protection performance calculated over the last three months.P2P insurance's policyholders get a bigger slice of insurance money, while asset investors who try to raise the income of conventional insurance corporate giants get a far small share than they normally do.Another support for the Peer to Peer Insurance Industry falls in the form of Blockchain's accelerated acceptance rate, an incredibly efficient platform recognized for its high protection and robust communication capability.
Drivers – Peer to peer insurance market
Convenient and fast to access
It might take a while to get insured from a conventional broker. An inventory of valuable possessions needs to be submitted and waited while the company evaluates the level of risk. There are several ways, mostly full of scientific terminology, to fill in. P2P insurance providers are raised in the modern era, thereby streamlining the process.A few simple questions need to be answered online and a quotation provided in minutes. Digital transactions are being taken to guarantee the service is up and running on the same day.This advantage cannot be overestimated, especially for anybody who has ever had to lodge a claim and go through the tedious phase of working with conventional insurance providers.
Challenges – Peer to peer insurance market
Insurance Regulatory Compliance
Insurance Regulation Enforcement is lacking in full detail, and there are various actuarial complexities and problems around risk control and underwriting procedures. This poses a challenge to the market growth of peer to peer insurance.
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the peer to peer insurance market. As of 2019, the market for peer to peer insurance market is consolidated with the top players includingAllied Peers, Axieme, Bandboo, besure, BitPark, Broodfunds, CommonEasy, Cycle Syndicate, Darwinsurance, First Club Insurance, Friendsurance, and among others.
• InFebruary 2018, iXledger and InsChain entered into a partnership for peer-to-peer insurance in China. The partnership allows iXledger to broaden its services into China and the region, allowing iXledger 's Utility Token, IXT to be accepted on the peer-to - peer insurance services platform of InsChain.
• In December 2018, Peer-to - peer (P2P) lending service PaisaDukan has collaborated with Bharti AXA General Insurance, a joint partnership between Bharti Companies and multinational insurance firm AXA to provide all its consumers with payment security and personal injury insurance solutions.