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Peer to peer insurance (P2P)

What is peer to peer insurance (P2P)
Peer-to-peer insurance (P2P) is a shared risk network in which a group of people add their premiums to make sure they are at risk. Peer-to-peer insurance reduces the tension that arises between a traditional insurer and an insured when the insurer maintains the premiums it does not pay if it wishes. P2P insurance can also be called "social insurance."

Peer to peer insurance reduction (P2P)
The search for cheap and easily accessible services in the financial industry has brought a number of technology-driven tools launched by financial technology companies. The insurance industry has not been left out of the technological momentum that is changing the way consumers and businesses interact. Insurtech, a new insurance technology, has introduced tools so that policyholders can easily access insurance coverage at a lower cost than traditional approved policies. The introduction of fintech ideas, as a platform to fill social media platforms, has led to the implementation of P2P insurance.

Peer to peer insurance (P2P) Traditional insurance
The traditional insurance model covers a large number of strangers under the same coverage. The author uses the profile information provided to each of these people to create a personal analysis. Information such as age, hobbies and medical history is used to determine the premium that each insured can establish. The cost includes the cost of paying the person and providing insurance to the insurer in case of loss. The group presents some people with different risk profiles, low-risk members pay less in premiums for the same type of coverage. If one or more members or insured experience a traumatic event, the group money is used to cover the affected people. The insurance company maintains the excess amount in the group at the end of the coverage period as part of the income. As the earnings motivate many insurance companies, there is a conflict between the insurer and the insurers when unused premiums are not returned.

The P2P insurance model is different from the traditional model in many aspects.

The insurance group is made up of friends, family members or people with similar interests who have participated contributing to the losses of others. By selecting members of a group, the insurer assumes responsibility for the risk profile of the group. This option will encourage you to start a low-risk group and, therefore, is very expensive for members. In addition, by investing premium with people you know, P2P insurance promotes the clarity of your operations. Each member knows who is on the team, who claims and how much money is in the group. Finally, the P2P model solves the behavioral risks associated with traditional insurance integration. When members share the same membership and know each other in the community, it is dishonest to file a fraudulent or unnecessary claim.
Any funds received from the group when the coverage period is returned to its members. This eliminates the problem that policyholders have with traditional insurance providers when the motives of both parties are unequal. In addition, the P2P group is covered by insurance, so when a party receives a claim for a price that exceeds the premium, the recipient pays the excess of available money.
Point to Point Insurance Pools (P2P)
Different P2P insurance providers work in different ways. Some groups only cover certain types of insurance, such as car insurance. Some require members to have the same causes as cervical cancer support. Some groups even use the reimbursement tool to guarantee sick leave among them. Some providers return unused rates to members of each group. Some offer unwanted premiums to a charity or a policy that includes policy makers. Several providers use Bitcoin as payment.

The new state of P2P insurance has presented some challenges to insurers who think that P2P models are different from traditional ones. A similar concern for demanding organizations that see technology disrupting traditional operations in the financial industry has led to a new group of companies called Regte. Regte uses new technology to help companies and industries contribute to digital development without problems

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