In 2014, Guevara, a UK based P2P insurance startup introduced the first iteration of their platform for the UK’s £15 billion car insurance market. Specifically, Guevara takes a fresh approach to car insurance by allowing customers to pool their premiums in order to lower the collective premium and then refund unclaimed capital to the group. Since 2015, 90% of Guevara’s users have been able to lower their premiums.
There are two ways to choose a Guevara P2P pool; you can either be invited by a friend or family member or Guevara will suggest the most relevant pool for you based on your risk profile and location. Guevara then tries to encourage friends and family to join mutual groups which further encourages the P2P functionality and lowers premiums through reducing the incentive to claim.
Guevara also has an app that it uses to collect data from the scene of an accident and groups also have a message board to discuss their claims and make decisions collaboratively.
According to Guevara founder Kim Miller, “The safer the group drives, the less they claim, the more they save … you pay based on your actions rather than statistics. You could call it carmunism”.
Ultimately, Guevara is helping to pioneer the P2P insurance movement in the UK alongside Friendsurance in Germany and Tongjubao in China.