Peer-to-peer insurance:

the new market standard

“Insurers who miss to adapt their products will struggle”

Tim Kunde, Managing Director at Friendsurance


Tim Kunde gave an exclusive interview with us on the future of peer-to-peer insurance and customer-centric innovation. He discusses how insurers must adapt their products to suit their customers’ need for digitisation and convenience, and gives insight on banks and insurance distribution.

We’ve seen players such as Bought By Many, Lemonade, and of course Friendsurance, start to ignite the discussion around P2P insurance, do you foresee it becoming still more popular in the next 5 years?

T.K.   When we launched our peer-to-peer insurance model in 2010, it was utterly unique. Since then, more than 30 copycats have emerged across the world, and a new segment solely for peer-to-peer insurance has been established, with Friendsurance as the segment leader. We expect that peer-to-peer insurance will become a market standard in the long-term. So, over the next five years, we would expect to see more P2P players pop up globally.

How do you expect P2P insurance to evolve?

T.K.   There are different ways to offer P2P insurance. I’m sure new digital opportunities, such as AI, Blockchain and Big Data, will favour P2P insurance and open up new approaches to it.

What does customer-centric innovation look like within Friendsurance?

T.K.    Customer-centricity is a mindset and deep in our DNA. We put the customer in the centre, no matter what we do or what we’re working on. This means we ask ourselves in every development step: “Is this the best for our customer?”. Concretely spoken, we don’t only think about our customers, but we also ask them for feedback – and take this feedback seriously. We also user-test almost everything. User-tests are the best way to get honest answers and to see where, how and why customers are struggling with something. Then, we iterate until the user-test results are as desired.

How do you expect the next wave of the digital revolution to unfold and what will be the impact on insurers?

T.K.    Today, customers want everything to be digital and convenient. Insurers who miss the chance to adapt their products, services and platform to these needs will struggle, particularly with Millennials. Whilst this issue is well-known, it is on-going. Another trend is the all-in-one-app. Customers will come to manage all their financial matters in one place, which will greatly affect the insurance industry. We believe therefore, in a deep integration of our digital insurance platform in online banking, something we partnered with Deutsche Bank on. Finally, PSD2 and the rise of open APIs will enable innovative and customer-friendly insurance solutions.

What role do you foresee banks playing in insurance distribution in the next 5 years?

T.K.     We expect most retail banks in Europe to offer their customers the opportunity to manage not only their bank account, but also their insurance on their online banking platform. The reasons for this fast development are clear: banks will ultimately profit from better customer retention, satisfaction and additional revenue streams.


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