P2P Insurance
Description
"It was only a matter of time, that the p2p concept would be applied zo the insurance sector. Friendsurance does just that. You invite your friends and relatives, and they agree to cover part of the damage. In exchange Friedsurance claims that you can save up to 50-70% of the insurance costs.
At the moment Friendsurance offers general liability insurance, household contents insurance, legal expenses insurance and and cycle insurance.
How does this p2p insurance work?
Each of the invited friends will have to contribute 20 EUR in case an insured damage occurs. The remainder of the damage amount is covered by a conventional insurance.
Friendsurance says the costs savings are substantial since the concept:
* prevents fraud * prevents misconduct (through social control) * eliminates sales costs * discourages claims for small damages * lowers administration costs"