In Action Summary
Peer-to-peer (P2P) insurance is a popular business model right now within digital insurance. From Lemonade – the carrier, to Friendsurance – the broker and Tongjubao – the platform, P2P insurance models differ as much as they resemble each other. Axieme, a newcomer based in Italy, is trying to revolutionise the Italian insurance industry through the P2P model.
Axieme believes in rewarding good behaviour and its P2P offering allows customers to share the risk of an accident or damage along with other people in the group with full
Axieme’s P2P model enables policyholders to share the risk of an accident or damage along with other policyholders who share a similar risk profile. This harks back to the first ever insurance contracts, but with an additional premium redistribution element for policyholders.
Essentially, members of the same ‘risk class’ contribute to a common premium pool, sharing the risk that happens throughout the policy life cycle. As there is no traditional underwriter present, the premiums are returned to the insured at the end of the policy. If there is a claim, members will still receive the additional capital back on an annual basis.
Ultimately, although the core function of insurance is to protect people and assets from both unforeseen and inevitable risks, Axieme believes it is equally fair to be rewarded if careful and judicious behaviour helps in avoiding accident or damage.
Although Axieme is a relatively late entrant into the P2P insurance space, there may be a silver lining in the fact that Axieme has watched the early movements of Friendsurance, Guevara and Lemonade as they try and establish product/market fit – “last mover advantage” so to speak.