Sharing economy: putting risk to work
Our sharing economy team is constantly talking to mobility providers and insurers about what risk means to them. Earlier this year, our team attended the Marketplace Risk Management Conference in San Francisco to dive even deeper into the conversation. What really stood out to the team was how technology is enabling risk management to support innovation across all kinds of sharing economy and on-demand marketplaces.
Rachel Allen, Arity’s sharing economy expert offered her POV on this topic, sitting on a panel – Shared Mobility: Putting Risk to Work – alongside Iain Boyer, Chief Underwriting Officer at underwriting company of the Hartford Y-Risk, and Jason Sellers, Director of Insurance for car-as-a-service app Fair. The conversation dug into why mobility companies, insurers and analytics providers need to work together to manage risk for the long-term success of the shared and on-demand economies.
Since many of you may not have been able to attend, we wanted to share the top takeaways from that conversation:
Insurers are paying more attention to telematics in general – the sharing economy is no exception.
In Fair’s search for the right insurance partner, Sellers shared that the company was constantly asked about their view on telematics use. The technology could have significant implications in helping streamline and optimize fleet management. Sellers may not have had an answer then, but telematics has since become a top point of discussion within the company with a heavy focus on how this technology can benefit their customers. And while Fair will always be focused on prioritizing their customers’ needs, they’re also evaluating what kinds of technology – telematics and beyond – will help them work with insurers to position their business for growth through customer-centric and additional applications.
Data must be useful for all parties in a marketplace – for buyers, sellers, and end-users.
During the discussion, all panelists agreed that collecting and generating data can only be justified if it offers value for end-users, any company’s ultimate customers. It’s critical to communicate how and why you’re collecting consumer data while protecting their privacy with full transparency so there are no surprises. It also ensures trust between all stakeholders for a more productive relationship that is mutually beneficial.
Innovation requires collaboration, especially when it comes to data.
All panelists agreed that whether driving innovation to improve car-as-a-service or insurance products, a collaboration between all parties – specifically around data and insights sharing – enables better outcomes. For example, Arity is working with Y-Risk to align with companies like Fair on building a comprehensive strategy guided by meaningful data. If each of these companies were not equally invested in the unified outcome, it wouldn’t work. That said, the panelists agreed that this kind of alignment and partnership would take time and careful evaluation, but everyone acknowledged they are invested in learning together.
Overall, the panel highlighted the many challenges around adopting telematics from all players in the transportation ecosystem. As the sharing economy and gig economy continues to boom, it will be fascinating to see how the transportation industry reacts and evolves. We’re certainly invested in a future of mobility powered by data and insights, and we look forward to driving this conversation forward.
What do you think? How can sharing economy companies best use telematics?
Arity Sharing Economy Group Product Manager Rachel Allen shares what she expects to see on-site at Marketplace Risk. (Hint: more scooters and cyber risk.)