Consumers more comfortable using sharing economy services that offer insurance
Lloyds finds that insurance enables growth in share economy.
Consumers are still worried about the sharing economy, according to Lloyd’s report: Sharing risks, sharing rewards: who should bear the risk in the sharing economy? The study found that 58% of consumers in the US and UK thought that the risks associated with the sharing economy outweighed the benefits.
Why were consumers concerned? Well, 52% cited personal safety as their greatest concern with the sharing economy. The report found that people would be more comfortable if these platforms offered insurance (71%).
“In our work with sharing economy platforms, we’ve found that insurance not only protects against financial loss, but it also enables growth,” said chief commercial officer at Lloyd’sVincent Vandendael.
Almost all of those surveyed (97%) assumed that share economy services provided some sort of risk protection. However, only a meager 28% checked to see if they were provided with coverage.
“Based on our findings, instilling consumers with confidence by clearly defining and protecting against risk can help remove barriers to engagement in the sharing economy. There is no doubt shared platforms are growing at a lightning pace, so it’s important that the insurance products created for these companies are able to grow and change with them – from a ten person startup to a global disruptor,” Vandendael said.
As the sharing economy proliferates, the question of who owns the risk has also been called into question.
“The sharing economy itself created a new risk landscape with many untested assumptions around who should be managing risks and liabilities, because of this insurance can play a significant role. As these risks are addressed and written in our market, we see the power insurance has to give consumers peace of mind and providers and platforms confidence to grow,” said head of innovation at Lloyd’s Trevor Maynard.
Both drivers and riders should understand their car insurance policies to see what they’re covered for when using Uber, Lyft or other ridesharing apps.
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