InShare with Mark Warnquist | E231

Providing protection to gig economy.

On today's episode of the Fintech Impact, Jason Pereira is going to talk to Mark Warnquist, CEO of InShare - an insurance tech that focuses on distributing protection solutions to the on-demand economy to lift the gig workers of the world. Mark talks about the early challenges that he had faced with the insurance companies. 

Episode Highlights:

  • 0.50: With InShare, we set out to do something better and move faster than incumbents and build solutions that benefit and help the on-demand economy, grow and protect the gig workers on whom the on-demand economy largely depends, explains Mark.

  • 1.35: Mark says that they have found themselves in a space where there weren't insurance products. They had to build it themselves. Episodic insurance, and incumbent insurance carriers were certainly not used to this market.

  • 2.21: Mark has seen a lot of the maturation curve that the other carriers and platform companies are going to go through. So they have decided to build something special and do it differently than others. 

  • 6.59: There are some standards to be a driver on any of these platforms. You have to pass certain tests, and they will check your motor vehicle record, your background, and all those sorts of things, says Mark.

  • 7.30: Mark talks about method of distribution. He tells the listeners whether he is still right downs to the end-user level, or is that still in the works, or is it largely more fleet-based?

  • 8.16: Jason asks, some insurance companies have added dongles that plug into your utility board to collect information. How are you collecting the information?

  • 9.14: If a newer company does not have an app that allows for collecting information, we can provide that form. If they are not collecting telematics, we can do an SDK integration and pull the telematics out of that, says Mark.

  • 10.43: We need to be very mindful as we deploy and talk with platform companies about the products, like how you deploy the products to do the right thing for gig workers in a way that will not destroy your operating model, says Mark.

  • 12.03: Mark explains how does he deal with the gig economy worker or gig economy driver working for multiple companies? Is there an overlap, or does he profile them? 

  • 14.50: We need to know a certain tech component to the underwriting, which is very important. The burrito in the back versus the passenger in the back is a very different exposure, says Mark.

  • 17.14: The more that we can learn today is going to position us not just in today's sharing economy but tomorrow.

  • 18.10: The property sharing space is the other area where data and the same principles can be brought to bear, and that's in our road map for 2023 and beyond, says Mark.

  • 19.12: Mark is engaged with several entities, and one of them is a leader in the United States in terms of attracting and retaining gig workers. They are a terrific opportunity for Mark to partner with them to bring solutions to that space, exactly to TaskRabbit space. 

  • 21.32: The United States has the greatest protection gaps than any developed country with gig workers. 

  • 22.51: We have to have insurance companies trust us, give us authority, give us the pen to rate their balance sheets, and that takes a great team. We are doing it, and that's been a challenge, says Mark

  • 25.09: You can't spend any time at Uber and deal with hundreds of gig workers, hear their stories, and not feel for them. There is a big gap in that, and we are in a place where we can help solve that, and that feels good, explained Mark.

3 Key Points

  1. Uber and Lyft bought the insurance of need, and still, these are the insurances that cover the drivers, passengers, and third parties during each period. 

  2. Mark explains how did he face and overcame the challenge of underwriting with so many tiny little contracts and doing so without putting himself in a bad spot. 

  3. There is no substitute for having world-class talent because it's the only way to get anything done.

Tweetable Quotes

  • "The law of large numbers in the insurance world says that if I offered to everybody or a specific target niche, I could figure out, on average, the risk." – Jason

  • "In the next phase, we will be entering and bringing more discreet telematics solutions to this space so that if I'm the great driver and I'm the less than great driver, you're not subsidizing." - Mark

  • "The insurance protections extend if you were on dispatch or that you were working on the provider platform and not on another platform." – Mark

  • "One of the things that we don't get to differentiate on when it comes to pricing is, do I have small kids who can be distracting in the back seat, and when you think about that, it is a risk factor consideration." – Jason

  • "The opportunities are there, and we have to be smart about prioritization like any company, but the market pulls huge, and I just wish we could move faster." - Mark

Resources Mentioned:

Fintech ImpactJason PereiraFintech