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  • Writer's pictureConnar Stratton

Startup Idea #20: P2P insurance business for SEA

Updated: Dec 21, 2022

Idea: A community-based Peer-to-Peer (P2P) insurance business focused on South-East Asia. The business would specifically be targeting communities, differentiating itself from Mutual insurance. The angle is that South-East Asia is already massively community driven, still relying heavily on insurance agents to sell insurance to their friends, and family.


Problem: The existing insurance models have a few problems:

  1. High costs- Having traditional insurance intermediaries increases the costs.

  2. Generic coverage terms- Policyholders need to find an existing policy from the market, rather than develop one that works for their specific needs.

  3. Poor transparency- With poor transparency and community between members, there is an eagerness to claim, even when the claim is unnecessary or fraudulent.



Insight: The South-East Asian market may have a stronger sense of community, face and trust than some of the western communities that have been trying to get the P2P insurance up and running. With the stronger community ties, and the existing insurance agent infrastructure, there may be better networks to tap into.


Validation method: Take on the role of a South-East Asian insurance agent, and try sell this product to your friends and family. Fortunately, this is a great opportunity for you to gather data by interviewing them, understanding what is important to them, and how to pitch to them. Part of the P2P insurance model is finding a community with a similar risk profile, and coverage appetite, so you would also need to sell to different communities to see which stick. Some communities to experiment with would be university students, and single young professionals.


Notes: There may be similarities to Islamic insurance which you should research and learn from. Their religious ties allow a community to be built and trust to be formed. The community building is the most important element of this product, so the key to this business is finding a community with strong enough trust, but also the willingness to try a new type of insurance model. Once you get initial validation, then scaling this business to the masses through an insurance agent network should be a lot easier. Some P2P insurance companies give the remaining premiums back to the policyholders, but others use it as an opportunity to donate to a mutually agreed upon charity.


Why am I doing this? I’m an innovation consultant who helps businesses build new products, and ventures. And I want people to see how easy it is to build, and validate an initial business idea. Hopefully inspiring them to start their own business.


Am I worried that people will take the ideas? I hope they do. These ideas will hopefully make the world a better place. Just remember, “Ideas are cheap. Execution is everything”. What’s most likely is that within a month of testing the idea, the idea would have completely pivoted, but this is a starting point.

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