The fast and steady rise of new platform business in the mobility sector may hold potential for motor insurers to engage in new business opportunities. This becomes relevant as insurers are looking for new ways to compensate the gradual decline in the gross written premium due to advanced driver system technology. We are convinced that providing add-on insurance for private car- and ridesharing schemes may be promising due to the following reasons:
--Many operators of such platform business schemes are yet self-insured. Thus insurers have the freedom of drafting customized insurance solutions together with the platform vendor.
--Those insurers who occupy this niche today do not face much competition in this sector
--The digital tradition of the rating society may have an affirmative effect on the moral hazard among the parties involved in such schemes.
But primary insurers are having difficulties in pricing these risks due to lacking loss histories. Have a thoughts on this? Let us know in the comments.
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