Insurance is the latest financial service to get a shake-up from peer-to-peer (P2P) dynamics. Learn more about this innovative type of self insurance and how it can help you protect the things you loved most, at an affordable cost.


Peer to Peer (P2P) insurance has attracted a lot of attention recently as a concept that is turning traditional insurance on its head.

This type of self-insurance and community risk protection offers many benefits to consumers over traditional insurance companies, including: 

  • Lower premiums
  • More transparent and faster claims process
  • Greater control
  • Less risk of fraud 

Unlike with traditional insurance products, Besure’s P2P platform offers consumers an innovative way to protect everything they value. With the platform, you have complete control over the process and you can participate directly in self-insurance that guards you against life’s unfortunate setbacks.

A Community That Takes Care of Your Needs

The aim of Besure is to attract users with common interests and passions, allowing them to form micro-communities (pools) to protect the things that matter most to them, whether it’s your musical instrument, smartphone, home, or beloved pet.

Want to know more about this type of self insurance? 

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What is P2P Insurance and How is It Different From Traditional Insurance?

Peer to Peer (P2P) insurance is a risk sharing network where a group of like-minded individuals pool together their funds to insure against a specific risk. This type of innovative insurance aims to mitigate the conflict that inherently arises between the policyholder and traditional insurer and seeks to give back control to the consumer.

How Did P2P Insurance Come About?

The demand for more accessible and low-cost services in the financial industry has brought about a number of technology-driven tools initiated by fintech companies. Technology innovation in insurance has introduced tools for policyholders to gain easier access to insurance coverage at lower costs than traditional policies. 

The inclusion of fintech concepts such as social networking and crowdsourcing platforms has led to the P2P insurance movement. 

 

P2P Insurance vs Traditional Insurance

To understand the differences between P2P insurance and traditional insurance, we must first understand exactly how the traditional insurance model works.

Here are the main facts you need to know:

  • Traditional insurance pools a large number of strangers under similar coverage.
  • An underwriter then uses the profile information provided by each individual to create a risk analysis of the person.
  • Information such as age, hobbies, and medical history, are used to determine the policy the person would pay.
  • The pool covers individuals with different risk profiles, meaning the lower risk members pay less premiums for the same type of coverage.
  • The premium covers the cost of insuring the individual and provides assurance to the consumer that in the event of a loss, he/she will be covered.
  • In the event that one or more members experience a catastrophic event, funds from the pool are used to cover the affected parties.
  • The amount of excess in the pool after the coverage period is retained by the insurance company. 

Note: Since most insurance companies are driven by profits, a conflict ensues between insurers and the insured when unused premiums are not refunded.

How P2P is Different

The P2P model differs greatly from the traditional insurance companies in its mission to provide more control for the consumer and a fairer, more transparent process.

The two main differences are:

  1. The insurance pool is comprised of family, friends, or individuals with similar interests

A P2P pool is comprised of individuals who know each other and who have similar interests and allows such people to join their funds and protect against a mutual risk.

This has several advantages, including: 

  • By selecting your own pool members, you will be able to assume responsibility for the group’s risk profile. This means you can initiate a pool with a low risk outcome, and hence low costs for your members.
  • By pooling premium funds with people you know, P2P insurance promotes transparency in all its operations. You will always know who is in the group, who is filing a claim, and how much money is in your pool.
  • Because you know the pool members, whether they’re family, friends, or acquaintances, there is a disincentive to file fraudulent or unnecessary claims.
  1. Any funds available in the pool after the coverage period are returned to the members.

This eliminates the issue that policyholders have with traditional insurers, where both parties’ interests are not aligned. With Besure, if there are any funds left over in the pool after the coverage period has ended, this is returned to the pool members.

Call Today

To find out more about how Besure can help you successfully self insure and protect the things that matter most to you, contact us today at 403-460-6961 or fill out our online contact form.

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