Posted: Thu Sep 18, 2008 1:56 am Post subject: Peer to peer insurance
Hello,
I'm writing a business plan for a peer-to-peer insurance company and I want to get your feedback. The idea is to put peer-to-peer insurance marketplaces in communities where everyone trusts each other (small schools, companies, neighborhoods, etc.).
A marketplace member would be able to create an insurance contract, divide it into pieces, and allow other marketplace members to provide the insurance. For example, one person could create a health insurance policy with a $1,000 per month premium and a $10,000 per month maximum coverage, and divide the policy into 100 units. Another marketplace member could provide 1/100 of this insurance contract, receive $10 per month, and be responsible for up to $100 per month in coverage costs.
Would this kind of marketplace work in your small communities (assuming it could be implemented)?
I'd appreciate your feedback as soon as possible, so it can be incorporated into the business plan. This is for a class assignment, but it could go further than that.
For example, one person could create a health insurance policy with a $1,000 per month premium and a $10,000 per month maximum coverage, and divide the policy into 100 units.
Are you talking about a group policy? I'd rather believe that in a group policy the premium would be more than an individual policy. I'm saying this since people with pre-existing conditions may not obtain an individual health coverage. On the other hand all those who come under a group health policy would be covered under it. So, the premiums gottabe more!
ArindamSenIndies
Hi..I'm not yet sure whether you're thinking over it seriously or that you're in your whims! Do you really think its possible?
Quote:
The idea is to put peer-to-peer insurance marketplaces in communities where everyone trusts each other (small schools, companies, neighborhoods, etc.).
Where do you think you'd find such like-minded communities? Schools?? - Who are you exactly targeting out of small schools? Why do you feel they would be similar communities?
Fatman
No..I don't think he's going the right way. He's probably eliminating a lot of other factors.. Is he targeting the kids as consumers? the school staff? I think they would also have enough differences in terms of their economic & social statures and hence not at all be in a position to accept policies of similar designs & pricing. But I'd wait for the others to comment over it. Evan
Yeah, my friend I'd truly feel you're too far from being real..companies do have hierarchies and that is reason enough to suggest that all employees won't fit in to the same policy category. Again, you can't really expect all your neighbors to belong to the same income group or with the same requirements.
Thanx, fatman
one person could create a health insurance policy with a $1,000 per month premium and a $10,000 per month maximum coverage, and divide the policy into 100 units.
I was just wondering if its possible for one person to head such a project!
Don't you think $1,000 is way too high?
Please share with me hoe have planned to get things across such communities. It seems as if ideas are sailing in from all quarters
Roddick
Also, I don't feel it would be that much easier for one member to coordinate the whole affair with the other members. What about the legalities for such business proportions? You'd definitely need to think it in line with your state guidelines..did you do it? Even..in order to cover $100/month the person would need to have enough of capital-funding source..which I suppose would not be any easy task for all within the group to maintain. Fatman
Would this kind of marketplace work in your small communities (assuming it could be implemented)?
Well..to tell you the truth my friend, I don't usually assume things if I don't see any reason upon which they are based. I just don't have any clue as to how you have thought of implementing it. You have not thought of communities on the basis of bigger factors like economic strength, culture etc. Still, I'd be interested to know exactly how this idea came up to you & what plans you've got to support this idea. Roddick
