TeliaCompany, the leading teleoperator in Nordics and Baltics, is entering the 4000 billion dollar insurance business in cooperation with Finnish startup Fair. CEO of TeliaCompany Johan Dennelind and CEO and Co-Founder of Fair, Johannes Hirvaskoski, launched the first peer-to-peer insurance service at Slush 2016.
TeliaCompany and Finnish startup Fair launched a new digital service at Slush. TeliaCompany CEO Johan Dennelind emphasizes the importance of partnerships. “Disruption in everywhere, and the only way to stay ahead of the competition is to partner with others to make things happen. TeliaCompany is very keen to partner with a Finnish startup.”
Fair is the world’s first peer-to-peer crowd insurance, or “crowdsurance”, as the co-founders call their app. “Instead of traditional long claim processes and high upfront insurance payments, peer-to-peer is at the core of our service. It is up to the users to decide who gets compensated, and it is also the users who cover the compensations“, explains CEO and Co-Founder of Fair, Johannes Hirvaskoski.
Users of Fair can claim compensations for their losses, which can be anything from a broken smartphone to a bad date. The claim is then anonymously evaluated by the other users. If sufficient amount of peers think the claim is worth compensating, the money is collected from the other users. The amount of money collected per person will vary roughly between one and two euros, and Fair declares, that no user pays twice until everyone has paid once.
“This is the world’s first peer-to-peer insurance service“, says Hirvaskoski. “We believe Fair can disrupt the whole insurance business. In the future, consumers should not insure themselves against small value damage, but share the costs with each other instead.”
Fair sees Finnish market as a proof of concept, and aims to grow to English speaking countries in the future. In the beginning, the possible compensations that users can claim vary between 10-100 euros. Two of the categories, mobile and car, are co-branded with TeliaCompany.
This product launch is another good example of the cooperation between well established companies and startups. Hirvaskoski sees that with the help of TeliaCompany, Fair can grow more rapidly. “We are very happy to launch the service in cooperation with TeliaCompany. Telia is a well known brand in Nordics with excellent distribution and marketing channels.”
Fair can be now downloaded for iOS. Android version will be launched in early 2017.
Photo: Maija Astikainen