P2p Insurance

There seems to be quite a few new possibilities for regular people and small companies to bypass banks and enter into financial transactions directly with each other. Zopa and Prosper propose to establish a lending p2p market operating in different ways but trying to offer better rates than at the bank,for lending and borrowing, for similar level of risk. Following a post by Bobble, There is also a P2p foreign currency network in place, moneytwins.com , that allows people to swap their currencies notes. The main issue is to establish trust between members, but that is the same as on sites such as E-bay. Rigorous feedback and community building should make it work.

MAybe some time soon will we see emerging P2p insurance markets. The LLoyd's was supposed to be organised in such a way, but the membership is very complicated and involves to bring on loads of capital. There should be a company that would propose customers to apply to insure a particular risk. In a way, lending P2p is a form of insurance already, you get a better rate than the risk free one, but you have a risk that the debt is not repaid. So rather than limiting the risk to that particular class, the non-repayment of a debt, someone should extend it to more categories, all those covered by normal insurance companies.