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Sharing economy companies – sometimes called gig economy, peer-to-peer economy and on-demand economy – use digital platforms to solve problems for their customers. From transportation and delivery to vacations and experiences, sharing economy companies make it faster and easier for consumers and suppliers to meet each other.
But solving problems for customers can create risk problems for the providers. That’s where Marsh’s Sharing Economy and Mobility team step in to provide bespoke solutions. Your company’s product and service is unique from any other product or service – and you need specialized solutions to remove your risk management hurdles.
Our team of global specialists work closely with you to understand your specific needs and tailor a risk management project to enable your company to thrive. The right risk management and insurance solutions can prove your products and services are reliable and safe – helping you attract more customers and placate wary regulators.
These are five of the frequently asked questions that sharing economy and mobility companies face when trying to obtain insurance coverage. But fear not; Marsh has answers for all of them. Marsh’s Sharing Economy and Mobility Practice solves the hard insurance problems.
1. Where does personal insurance stop and corporate insurance begin? Sdfsdfdsfsd
2. How do I know if my company is getting the best price for its insurance coverage? Often sharing economy companies have their risks priced by older, static models such as revenue-based or trip-based pricing. These outdated models often charge too much for insurance. Marsh can develop usage-based models that allows insurance to more accurately be priced by the risk – not other measurements. For a shared labor platform, Marsh designed a usage-based model utilizing a tiered rating structure by varying hazard level of each task. This aligns cost with actual risk rather than projected cost.
3. How can I keep up with all the regulations and insurance requirements for all the markets where I operate? When a global OEM needed insurance solution for three business models – retail, car-share, and car-subscription – in 7 European countries, Marsh developed a multinational solution to overcome challenges in each market. The Sharing Economy and Mobility Team tracks changing regulations and relies on local Marsh specialists across the globe to craft a program that will enable your growth while keeping you in line with regulations.
4. How can I demonstrate claims history for my product when it’s a brand new product? There is often an overall lack of data for new sharing economy and mobility solutions. Marsh helped an operator of scooter fleets modell platform loss data to build and accurately price the risk, which enabled the platform to streamline the onboarding process and scale their labor force. Partnered with Farmers Insurance to offer and service small commercial auto policies with limits up to 1 million.
5. Are my employees covered when they use their own cars to make deliveries? Marsh developed Created DeliveryPRO – an exclusive insurance product that is backed by technology and priced-by-mile to cover hired and non-owned auto delivery exposure. Clients with last-mile delivery platforms are able to reduce friction with personal insurers with a pay-as-you-go structure that digitally ensures coverage. Partnership with AXA XL, Arity and Sedgwick enables delivery network companies to meet surges in demand caused by COVID.
Case Studies
E-Scooter Rider Liability, Priced by Trip
Challenge:
Growth for e-scooter category is driven by the number of licenses to operate by city. Trust from city regulators is necessary to secure licenses.
A e-scooter company faced high insurance costs partially driven by corporate general liability policies potentially covering first- and third-party rider liability.
Solution:
- Invented and authored first-ever third-party rider liability policy priced by trip. More than 13 countries usie this policy today.
- Formed exclusive partnership with global underwriter. Solution allows client to enter new markets via a master group policy purchased by client on behalf of rider members, solving the prior challenge in holding e-scooter company liable for covering riders.
Auto Liability For Scooter “Chargers”
Challenges:
Independent operators of scooter fleets – for charging, repositioning – could not easily obtain insurance, thus increasing the risk for uncovered losses to the parent-platform. There was an overall lack of data that led to uncertainty on how to accurately price.
Solution:
- Modelled platform loss data to build and accurately price the risk, which enabled the platform to streamline the onboarding process and scale their labor force.
- Partnered with Farmers Insurance to offer and service small commercial auto policies with limits up to $1 million.
Non-Emergency Medical Transport Per-Mile Auto Policy
Challenge:
A non-emergency medical transportation platform was struggling with how to best quantify risk from pre-scheduled rides.
It needed to include coverage for the loading and unloading of passengers.
Solutions:
- Partnered with an insurtech to create a usage and behavioral-based auto policy with loading and unloading coverage.
- Telematics collected via smartphone, which enabled the ability to monitor P1 exposure. Through use of technology, client was able to realize up to a 30% rate reduction based on good driving behavior.
Mobility Three Ways in Seven European Countries
Challenge:
Global OEM needed insurance solution for 3 business models – retail, car-share, and car-subscription – in 7 European countries, with branded full digital journey, user-friendly interface, and digital FNOL.
Solution:
Created 7 unique solutions using patchwork of 3 insurers, to overcome challenges in each market, for example:
- Spain: Hourly sharing is possible, despite challenge from regulator that requires daily MTPL registry.
- Italy: Daily sharing is possible through innovative solution with MOD (physical-damage), reimbursement of increased primary cost, and more despite regulator requiring 1 MTPL per vehicle.
- Germany: Sharing made possible through second MTPL structure.
- France: Fixed price for subscription possible with analogy to short-term rental where bonus-malus rate multiplier does not apply.
Parked Capacity
Challenge:
Car sharing platform needed a competitively priced solution to obtain primary admitted auto insurance and vehicle registration for their dedicated owned car sharing fleet.
Solution:
Developed a primary admitted auto solution to insure the vehicles while “parked” and still meet the insurance requirements for vehicle registration.
Tailor-Made Scooter Solutions Across 9 Countries
Challenge:
Client was struggling to create an insurance solution that catered to the differing regulations that exist and are constantly changing in each city and country in Europe.
Solution:
Created tailor-made insurance solutions for one client that stretch across 9 countries and are in compliance with various local regulations.
Solution is usage-based priced, and encompasses a 3rd party liability coverage (in the form of a compulsory MTPL coverage where e-scooters are classified motor, and a Rider-GL where they are not), as well as a Personal Accident coverage. This enables expansion into new territories and makes it possible to add different mobility markets in the future (e-mopeds, e-bikes).
Super Charging FNOL
Challenge:
Sharing Economy & Mobility companies are focused on hyper growth, and more activity on a platform leads to an increase in accidents and incidents.
There is a demand for claims processes and technology to scale with a fast-growing company, or else the company may experience a bottleneck in the claims process, thus creating a delay in submitting claims to an insurer and potentially negatively impacting customer experience and future revenue.
Solution:
Mapped an end-to-end optimized claims process flow for Mobility and Car Sharing clients.
Clients have the ability to decrease the time it takes to submit claims from 1-3 days, to submitting the majority of claims within 24 hour. Results in a 30% efficiency increase and an overall better customer experience.