I’ve been thinking recently - there are at least two products which offer automated insurance on the pay per use basis, and I am actually happen to use one of them - a per day health insurance, and I get automagically charged for each day I am abroad (yes, it is a mobile app that tracks me).
It is not cheap - I think about 5$ per day, but it is extremely convenient, and since I travel only a few days per month - I do not feel how expensive it is.
The other insurance solution is to pay you automatically when your plane is late. You get money as soon as the plane starts with delay.
Those two show the trend in insurance, a migration towards fine-grained insurance charged pay-per-use.
I’m trying to imagine how such insurance could work, for example, as a vehicle insurance (you pay for travel only, depending on where you travel and how fast), civil liability insurance (going to party with kids… better prepare for damages) or during-vacation house insurance (a couple of days per year I am away and want my belongings to be protected), etc.
I have to admit I have difficulties with imagining how to automate the payout process (verify the claim, and fight with abusers).
What are your thoughts and opinions? I’ll try to draw a map as soon as I will be able to imagine how things could work.