Insure with friends. Groupon and Living Social are already capitalizing on social media. They offer deals or handpicked experiences that can be shared with friends. You can use your social network to get lower prices for services. This could be the new trend in business.
Social media like Facebook is used to stay in touch with friends, and others who work, study and live around them. Twitter is an information network that connects you with the latest information about what you find interesting. Businesses connect with customers quickly to share information about products or services. These are just a couple of the web based platforms and technologies that enable you to interact with other people online. So what is next?
I found a German company called friendsurance, which lets you manage your own insurance claims amongst a select group of friends. You can create communities of up to 15 people who can help cover an insurance claim in case of an accident. Each person in the group contributes $50-100 to help cover a fellow member’s claim. When the claim exceeds the amount the group provide, friendsurance covers the rest of the claim.
The benefits to the members are up to 70% lower costs than their competitors. Many smaller claims are handled without the insurance company which reduces administrative costs and lowers premiums for the policyholders. Since your friends are handling the claims, you will be more concerned with quality of the replacement or repair and the associated costs. Fraudulent claims would be reduced because claims are handled by a trusted group of friends. They are offering home, liability and legal insurance. Could auto coverage be next?
What is the insurance company doing? It seems they are shifting some costs and risks to the consumer! If you are willing to put together a group of your friends and do some work, you will save money. The risk is limited because the insurance company will pay after a level of expenditures by your group of friends. It sounds almost like a deductible that is satisfied by a claim. They are using the same theory of raising the deductible to lower your premium costs for insurance. Does this sound like something you would try?
This is an intriguing idea! I could put together a group of friends that I select and save money. Hmmm! I would put together friends that I have known for years who do not have insurance claims. In the case of automobile insurance, I would find friends who drive safely and do not have accidents. The insurance company is counting on my ability to reduce the exposure to my group of friends and ultimately to the insurance company. Sounds like a win/win!! My group of friends is pretty good at getting high quality services or products at lower costs. Do you think friendsurance is trying to attract these kinds of customers?
Is this social networking or engineering? Since I could benefit from this selectivity, they have my interest. Would I go through the trouble of putting together a group to save money? It depends a great deal on how much I may save in premium. If this works, what is next? Social networking is changing business. Social networking is already used for marketing and empowering the consumer. This could be the next step! What do you think? Insure with friends.
Photo by: webtreats