Page 23 - Insurance Times April 2019

INSURING

THE

SHARING

ECONOMY

I t sometimes feels as if the sharing economy, which is include scalability and critical mass; the business models

how companies that facilitate peer-to-peer
only work when there are ample numbers of potential
transactions via an online platform/smartphone
participants on both sides of the exchange.
app are referred to, emerged virtually
overnight. Enter Steve Jobs. Although smartphones are now
ubiquitous, it's easy to forget that the iPhone with its
The sharing economy is also projected to continue iOS mobile operating system, which can be used by third-
expanding and disrupting many established industries. PwC party developers, was introduced just eleven years ago, in
estimates, for instance, that total transactions in the sharing 2007.
economy in Europe alone will increase from EUR 28 billion
in 2016 to EUR 570 billion by 2025. Smartphones and mobile apps - along with cloud
computing, geo-tracking and advances in software
What triggered its emergence and subsequent dramatic engineering - enabled sharing economy platforms to
growth? develop critical mass by more readily and inexpensively
connecting consumers with people looking to monetize
The key success factors for sharing economy companies their assets, capabilities or time. The growth trajectory for
ridesharing companies, for instance, closely mirrors the
About the author adoption curve for smartphones.

Mukadder Erdoenmez The range of products and services available through peer-
Head International Casualty Europe/ to-peer exchanges continues to grow. For example,
Middle East & Africa/ Latin America platforms offering shared workspaces, storage, delivery and
at XL Catlin, now part of AXA XL, a logistics have attracted nearly USD 2 billion in venture
division of AXA capital funding since 2013.

The Insurance Times, April 2019 23