Sharing Economy & Mobility

For companies that are disrupting existing models and enabling new ones, Marsh can help clarify liability and mitigate emerging areas of risk.

The growth of the sharing economy and mobility sectors are introducing new variables when it comes to determining liability, asset ownership, and the nature of work.  It is creating new risks for both the companies facilitating the exchanges and the participants in the transactions. Alongside this, new methods of mobility are being driven by increased connectivity, artificial intelligence, and electrification; these each require innovative insurance and risk management solutions.

As the global leader in insurance broking and risk management, our Sharing Economy & Mobility Practice is dedicated to helping you identify, quantify, manage, and mitigate your complex risks. We have the expertise and experience to provide tailored advice and build customised solutions that go way beyond “standard”. We understand that in many cases, insurance is crucial for enabling the business models of clients in this industry.

We work with start-ups and new trials, through to high-growth, private-equity-backed and publicly listed companies, plus major global internet and technology conglomerates. Alongside disrupted industries, our evolving continuum of clients is split into the following four key areas:

  • Assets: Real Estate, Hospitality, Storage, Airlines, Vehicles, Consumer Electronics, Peer-to-Peer
  • Labour and Services: White collar services, Blue collar services, New services
  • Mobility: Vehicle as a Service (VaaS), Transportation Network Companies (TNCs), Micro-mobility, Automated vehicles (AV), Electric Vehicles (EV)/IoT networks
  • Last mile delivery: Food delivery, Package delivery, Telemedicine, E-grocery and quick-commerce

About the Sharing Economy + Mobility Practice

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Marsh @ Move 2022

Powering posibility for the mobility sector Find out more

Work with 6 of the largest 10 Sharing Economy companies.

Broker to market-leading autonomous vehicle and electric vehicle firms.

We work with the leading European micro-mobility firms.

FAQs

The sharing economy poses several significant risks for companies, which could threaten opportunities for growth and harm reputation if not addressed:

  • Bodily injury: The sharing economy is changing the traditional relationship between parties in a transaction. Individuals are engaging with technology to participate in a sharing transaction – either as a provider of a service or the user of a service. However, the traditional two-party transaction is now expanding to multiple parties. In addition to the provider and the user, the tech platform is now a part of the transaction. Depending on the service provided, a restaurant, autonomous vehicle, apartment building, or other parties may also be involved. In the event of an injury, determining liability and identifying the right coverage can be very complex.
  • Cyber risk: While technology enables and powers the sharing economy, the failure of technology to perform due to a cyberattack or technology failure is also one of its biggest risks. Sharing economy platforms frequently store personal information and payment information, making them valuable targets for cybercriminals looking for data. The rise of ransomware attacks across all industries should be of great concern to sharing economy companies. An attack that disables your platform would effectively cut off all revenue streams.
  • Regulatory risk: The innovations that sharing economy companies bring to a particular industry are also very disruptive. As traditional players in an industry are threatened by these new business models, they may turn to regulators to help protect their market share, especially already highly-regulated industries such as transportation and housing. Sharing economy companies also tend to rely on contractors to complete transactions. However, there have been court challenges around the world to classify these workers as employees, not contractors. Changing the classification of sharing economy workers would dramatically shift the business model and the risk profile.

  • Data – the “new oil” - Data as an asset continues to grow in value. This is further shifting a company’s overall value into the intangible end of the spectrum.
  • Can regulation keep up — what’s the optimal balance? - Rapidly evolving business models and technological shifts present significant regulatory challenges for all stakeholders; regulatory shifts need to be addressed, both quickly and sustainably.
  • The internet of things — Connected devices, networks and data provide massive-scale opportunities for new types of business models. Analysis of, and reliance on, such Big Data presents new risks.
  • The changing nature of work — How we work is changing, people are combining different revenue streams to access new opportunities in a more flexible manner. Technology platforms are enabling the shift to a more flexible way of working.
  • Everything as a service (EAAS) — Services, products, and communications in real-time are the norm. Customer expectations are increasing and the “on-demand” model across multiple facets of lift and business is becoming ubiquitous.
  • Impact of COVID-19 as an accelerant — The on-demand economy has been disrupting legacy industries and creating new sectors. The way we use assets, access services and move is changing; and this is being accelerated by the broader impacts of the COVID-19 pandemic.

  • Dynamic insurance — Traditional “fixed” annual policies and static programmes do not work for SE+M business models that thrive on being on-demand and dynamic.
  • Legal boundaries — In many cases regulators are still playing catch up with Sharing Economy and Mobility business models and industry disruption.
  • “Out of the box” insurance solutions do not exist — Many of the risks and the required solutions are unique to the Sharing Economy and Mobility sector, and very different to standard insurance industry solutions. The approach in obtaining insurance solutions and buying them is very different to standard corporate insurances.
  • Integration of technology, data, analytics, insurance capital and fulfilment — Traditional insurance procedures are not cost-effective or dynamic enough for Sharing Economy and Mobility companies. An important success factor is being able to successfully weave these components together.
  • Fast-growing — Launches, exponential growth rates, and global expansion can present additional risks and needs as well as opportunities. We find our Sharing Economy and Mobility clients are on a more accelerated growth journey versus other industries, and proactively mapping a risk and insurance strategy can be crucial in helping to continue enabling the business.

  • It demonstrates compliance with legal and regulatory requirements.
  • It allows firms to obtain and retain operating licenses.
  • It supports the development and deployment of new technologies and business models.
  • It attracts independent contractors/suppliers.
  • It attracts customers and enhances core value and differentiation.
  • It acts as the “lubricant” to support building trust in Sharing Economy and Mobility business models.

  • Industry specific expertise
  • Affinity and schemes expertise
  • Technical insurance expertise
  • Risk management experience and resources
  • Understanding of regulatory issues and environment
  • Ability to deliver/expand globally as required
  • (Re)insurance capital, consultancy advice, risk management and technology
  • Digital capabilities and expertise

Our people

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Sam Tiltman

Sharing Economy and Mobility Industry Leader, UK & Ireland