How P2P is becoming a market standard April 2017 | Berlin

Quick overview Friendsurance 2010 founded Team: 90 from 20 nations Berlin / Melbourne First mover P2P 680€ / 84% cash-back > 100,000 customers #8 / #1 website traffic Friendsurance_exec i/o_Apr 2017

Some impressions Quelle: Arial 9pt Friendsurance_exec i/o_Apr 2017

Our approach: Peer-to-peer layer that covers small claims Covered by social network Small claims Covered by standard insurance Large claims Friendsurance_exec i/o_Apr 2017

P2P reduces cost of insurance significantly Typical cost build up of P&C insurers „Unnecessary rest” Fraud  Bad risk  Small Claims  Commission  Admin  Tax  Less cheating  fraud down Personal groups  better risk Small claims shifted away from insurers  fewer loss and admin cost Part of insurance privatized  less tax and commission – 40% Large Claims Friendsurance_exec i/o_Apr 2017

Cost savings are turned into cash back of up to 40% for customers Normal insurance User has an individual contract with a provider of her choice. Price and coverage are the same as usual. Friendsurance concept User adds the Friendsurance concept. That‘s also easily possible for existing contracts. Up to 40% cash back User gets a cash back of up to 40% if she and her group stay without claims (actual saving after claims1: 30%, 2013-15). There is no downside. 1. Private liability, household & legal insurance Friendsurance_exec i/o_Apr 2017

Impact is expected from industry experts – and is starting to show Expectation by insurance experts Confirmed for Friendsurance: Average claim frequency well below market average. „Will P2P insurance change customer behavior and thereby claims ratio?“ Source: Poll by „The Digital Insurer“ among insurance experts, Feb 2017 Friendsurance_exec i/o_Apr 2017

P2P insurance companies are spreading throughout world Source: Friendsurance research, March 2017 Friendsurance_exec i/o_Apr 2017

Different approaches to P2P exist Risk Carrier ? Position in value chain Inter- mediary Small Size of claims that have impact on peers Small & Big Friendsurance_exec i/o_Apr 2017

P2P should be part of an overall strategy to better serve customers Information Advice Purchase Optimize Handle claims Property & casuatly insurance Life insurance Health insurance Friendsurance_exec i/o_Apr 2017

Accordingly, P2P is starting to be used as general term for innovation Definition of P2P insurance Direct connection between insurance peers Indirect connection between peers Digital, user-centric innovation along value chain Friendsurance_exec i/o_Apr 2017

Outlook Hypothesis 1: P2P will not thrive as a stand-alone approach, but as part of integrated approach to improve price, transparency and convenience of insurance. Hypothesis 2: Apart from the different players, the approaches will also be different in each market. Hypothesis 3: The segment will consolidate. Less because of network effects, but more because of general challenges in scaling insurtech businesses. Friendsurance_exec i/o_Apr 2017