September 10, 2019
Over the past two years, we have witnessed the rise of a new trend in insurance: on-demand coverage. Such solutions help individuals avail insurance products on a pay-as-you-go basis, rather than for a standard time period. Additionally, these platforms help individuals avail insurance products for the sharing economy, for instance, car sharing, home sharing, etc. This way, customers only pay for insurance when the asset is actually in use and ‘at risk.’
However, what is the core problem on-demand coverage is meant to address? Generally, if someone wants health insurance, car insurance, or home insurance, they take out a policy which operates by virtue of the purchaser paying premiums to the insurance companies on a monthly or annual basis. With on-demand insurance, here’s the key advantage: people will have the freedom to insure themselves for shorter time frames whenever they want and wherever they need. In other words, people will have the right to pay premiums when they want and not pay premiums when they do not require them.
This week, we’ll take a look at some of the startups in insurance that are providing innovative solutions for on-demand coverage:
Metromile (Funding: $293 Mn)
Metromile offers a pay-per-mile car insurance model and uses data to optimize how they use their car to provide instant access to detailed vehicle diagnostics via the driving app. In 2018, Tokio Marine Holdings Inc licensed Metromile’s Connected Intelligence Platform, which leverages AI to provide insights into a customer’s lifetime value and improves their claims journey by integrati ...