HDInsights Edition 7 2022

‘Companies like these have third-party liability cover for riders that includes bodily injury and property damage during use of vehicle, as well personal accident. Another area is the shared use of private assets such as campervans, or holiday homes on platforms like Camplify or AirBnB. The typical set up for this version of the shared economy involves a group policy scheme, with the business platform owner as the policy holder. This allows the users of the platform service coverage under the policy as a beneficiary, says Tarantino. Other types of Insurance for technology driven companies include contractual liability coverage for financial reimbursement resulting from non performance or mal-performance of a promised service. For example the secure storage, custody and transfer of digital assets including cryptocurrency. One of the problems in dealing with insurance in the sharing economy is how to accurately assess risk given the lack of historical data for many of these new businesses. While HDI uses algorithms to help assess risk, an important part of the equation is allowing access to the usage data with additional premiums charged based on use. “We ask for usage volume, the product type, quality control and maintenance, the geography, location, control of that usage, any previous losses and lessons learned.” In addition, any data from global markets are applied locally. A lot of the companies and services began in Europe or the US before they moved into Australia. “When brokers approach us with sharing economy opportunities here, we are able to tap into that expertise,” says Tarantino. In the rapidly evolving post-pandemic economy, brokers are looking for opportunities in the shared economy space to evolve and move with the times. Brokers can help new economy platforms accelerate successfully by enhancing their value proposition and managing the shifting risk landscape. “The pricing structure is based on a per usage, or transaction basis.”

The new economy is here to stay but to help it grow, robust insurance is needed to enable trust and reduce financial exposure for users, says Tarantino. In the early stages of growth, success or failure of a business can often ride on public perception of a service or product and limiting risk plays a key role in ensuring that unfortunate incidents don’t trip up what would otherwise be a viable idea. “Having an insurance solution is really, really critical to protect them and their business for the future,” says Tarantino.

Please contact our HDI Team with questions

Contact - HDI

Alex Tarantino Regional Underwriting Manager Liability & Cyber Australasia M: +61 (0)406 173 524 Alex.Tarantino@HDI.Global

Andrew Cochrane Underwriting Manager, Liability Northern Region M: +61 (0)0456 568 456 Andrew.Cochrane@HDI.Global

Matthew Wuiske Underwriting Manager, Liability Southern Region M: +61 (0) 498 001 258 Matthew.Wuiske@HDI.Global

Tami Sorensen Liability Underwriting Manager, Western Region M: +61 (0)411 011 622 Tami.Sorenson@HDI.Global

Ashley Barrett Liability Underwriting Manager, Queensland M: +61 (0)410 026 659 Ashley.Barrett@HDI.Global

HDInsight Edition 7 - page 18