0. How P2P is becoming a market standard
April 2017 | Berlin

1. 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

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

3. 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

4. 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

5. 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%, ).
There is no downside.
1. Private liability, household & legal insurance
Friendsurance_exec i/o_Apr 2017

6. 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

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

8. 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

9. 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

10. 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

11. 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