Until recently, most New Zealanders’ lives had well defined boundaries that made it easier for insurers to assess and price risk.
But the sharing economy is changing the way we use our assets and belongings – and blurring the lines of traditional insurance policies.
“The core of the sharing economy is people renting things from each other.” The Economist
Why is the sharing economy blurring lines?
The rise of platforms that allow us to rent out our personal belongings mean that people are now making money from their cars, homes, clothes and even their money.
This raises questions for insurers about when something you own stops being for personal use, and starts to be a commercial asset.
For insurers, the sharing economy changes the amount of risk that assets face and makes it harder to put things into traditional commercial and personal insurance buckets.
For example, a basic house insurance policy covers owner-occupiers on the assumption that only close friends and family will be invited to their home. But listing a home on Airbnb opens the door to strangers staying in the family home, and the risks that come with not knowing who your guests are.
Personal or commercial - why does it matter?
At Sun Insurance, we are developing new ways to help our customers better protect themselves as they embrace Airbnb, Uber, and other assets of a sharing economy.
But if you are making money from your assets, especially a car or house, it is possible a commercial insurance policy will suit your needs better than a personal one. You may not even need to pay more in premiums.
If you are not sure whether your policy covers how you are using your assets, speak to your insurer or broker about the insurance you have in place and whether you need a different solution to meet your needs.
Call us at Sun Insurance for a no obligations review of your insurance policies on (09) 360 5555 or 0273 000666 or e mail us at: firstname.lastname@example.org