If successful PeerCover will receive:
- $40K seed investment in exchange for 6% equity.
- 100-days of on-site (Des Moines) development support and time on stage at the Global Insurance Symposium
- a team video
- a product video
PeerCover is looking to accelerate its success by applying to The Global Insurance Accelerator.
If successful PeerCover will receive:
1. These loans tend to be open-ended (no/informal repayment agreement)
PeerCover does involve any repayment. Everyone wins if no-one in their Peer Group claims, if someone claims then everyone loses - but only by a small amount.
2. Loans repayment have different priorities for lender and borrower
Since PeerCover does not involve any repayment, this is not an issue. Because your claim is managed through PeerCover we ensure that it is dealt with promptly.
3. It’s Difficult to Ask for the Money Back
With PeerCover you can withdraw your balance at any time. If a peer has successfully claimed then your balance will be less than your original deposit. As long as you have a balance it is at risk but you also get the benefit of the cover (which is a multiple of your balance).
4. It Can Make Family Gatherings Awkward
If your family or friend is reckless and crashes their car, things should be awkward. Peer pressure to be a good driver / look after one's phone etc is a good thing. We believe people will have peers in their Peer Group who they think are reasonable i.e. 'good risks.' even if they have the occasional honest mistakes / genuine accidents.
5. The Borrower Becomes a Servant to the Lender
Upon a successful claim, amounts are gifted i.e. PeerCover not involve any debt between peers.
6. The Borrower May Ask for More
The maximum you can lose is your deposit and you and your fellow peers are at no obligation to drop more into the hat.
7. You Enable (financial problems) Instead of Help Your Friend or Family Member
Morale hazard ("insure & ignore risk") is less problematic for PeerCover compared to insurers. Whilst insurers use fine print, PeerCover's approach is based on fairness. If the Peer Group believe a claimant was reckless, they can deny (by majority vote) that claim.
8. These Types of Loans Don’t Earn Interest
True, your PeerCover deposit doesn't earn interest but by buying less insurance you do save. If you take you insurance saving per deposit, you may find that PeerCover can provide a nice return on equity.
9. You Might Need the Money
With PeerCover you can withdraw your balance at any time.
10. You Could Lose Your Money and Relationship
Addressing each item separately:
This list keeps growing every day, so I thought I might start keeping track.
The below are in order of launch date. Arguably, Friendsurance is the first tech p2p insurer as the history of small mutuals goes a long time back in history (e.g. the start of USAA, Lloyds etc) If you hover over the icon you will get the organisation name and launch year, click and it will take you through to the site.
If you are interested in the p2p insurers who are yet to launch, there are more details here.
Local councils are increasingly seeking to use Collaborative Stakeholder Groups (CSGs) rather than councilors for low to medium level environmental decisions .
Cynically one could say this is a cost-cutting measure as decisions are outsourced to CSGs who often provide their time on a voluntary basis. However, this would ignore a broader decentralization theme where decisions are being put back into the hands of the people affected by those decisions.
There are sound economic reasons for this new approach. For instance the Nobel Prize winner Elinor Ostrom eight "design principles" of stable local common pool resource management which effectively calls for the formation of CSGs.
So, should CSGs be just environmental specific? We think the same principles should apply to insurance. PeerCover follows the eight design principles: