THE SHARING ECONOMY
Insuring The Sharing Economy :
Managing Risk In The Age Of Uber And Airbnb
Uber does not own vehicles despite being a multibillion-dollar ridesharing company . Airbnb does not own real estate despite its own success as a multibilliondollar short-term accommodation provider .
Millennials are increasingly attracted to innovative ways to reduce spending and to increasing the utility of the property they own .
Online sharing platforms , popular among millennials , are driving new economic trends which have in turn created new challenges for the insurance industry . Historically , insurance policies have been written to reflect traditional risks . Many insurance policies do not contemplate business structures such as those of Uber or Airbnb . Increased recognition of the evolving insurance needs of modern businesses has led some provincial governments to amend legislation in an attempt to keep up with the changing needs of the economy .
WHAT IS A “ SHARING ECONOMY ”? A recent report of the Canadian Insurance Institute observed that societal views are changing . Trust that people once had in corporations is shifting to increased trust in peers . You can see this trend with businesses , such as Ebay , that require parties to rate each other after one party purchases an item from the other . Future users look to their peers ’ ratings of a seller or buyer before deciding to continue with an online purchase or sale . An Airbnb host with a higher rating will receive more bookings . Increasingly , people are looking to feedback from their peers before spending their hard-earned money .
Furthermore , advances in technology have increased access to these shared services by providing online platforms where bookings and payments can
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