However, microinsurance isn’t only for low income groups. MMI Holdings. “The extent to which these business models can Based on the principle of improved operational efficiency that march up-market and satisfy the mainstream insurance cus- is largely made possible through technology, microinsurance tomer segment needs will in large part determine the extent of ideas are also now being deployed in the developed world. the disruption of current incumbents.” For example, massUp is a business-to-business player offering specialty and short term insurance. massUp offers 150 insur- ii. Peer-to-peer ance products for goods with such low profit margins that in- Some 7% of applications to Startupbootcamp came from peer- cumbents aren’t usually prepared to offer cover, even though to-peer insurance start-ups. These ventures have the potential the market for gadgets and speciality consumer items (for ex- to both disrupt the status quo and improve the image of in- ample, mobiles, musical instruments and sports equipment) is surance. Built to deliver trust and transparency, they address growing so fast. The company’s SaaS solution can be quickly these key concerns of many customers today. plugged into every digital sales channel, increasing ecommerce Peer-to-peer insurance businesses are now beginning to volumes and providing a cross-selling opportunity while re- take off. Examples include Lemonade, which recently raised a moving the operational and distribution inefficiencies that $13 million seed round, Guevara and Friendsurance, which is make protecting such low value items unprofitable for insurers. growing at 20% a month and has plans to expand globally. “Powerful new technologies and the innovative and hy- The model is tough, however, as it is much more capital in- per-scalable business models that they make possible hold out tensive than other types of InsurTech start-up. It may take time the prospect of addressing the low end of the insurance mar- for customers to get to grips with the concept of peer-to-peer ket, profitably serving customer segments that were previously in insurance, and for start-ups to prosper. neglected by the incumbent business model owing to their be- ing unprofitable to acquire and serve,” says Jonathan Stewart of 17