Analytics company GlobalData says the rise of sharing economy companies such as Airbnb and Uber pose both challenges and opportunities to insurance, blurring the lines for an industry which typically distinguishes between personal and commercial products.

The London-based analytics specialist says platforms that enable consumers to share belongings or services for commercial activities has led to a wave of flexible and innovative insurance products. These have also forced insurers to adopt new delivery methods to provide fast transactions.

The sharing economy poses challenges when establishing liability, and gaps in coverage exist even as the trend grows strongly, GlobalData says in a new report.

While insurers that do not adapt to emerging sharing models risk losing ground, “the potential of the sharing economy in insurance is still untapped and new shared mobility models will bring further lucrative opportunities to insurers”.

Some insurers have responded with add-on solutions to complement existing policies, while others have developed products that can be switched on and off as required from an app.

But GlobalData analyst Beatriz Benito says there is still ambiguity, including questions as to when coverage starts.

“While legislation is bringing some clarity into this, there is still some way to go,” she says in the report. “Consumers are bound to continue using sharing economy platforms, incentivised by greater accessibility and more attractive prices.

“There will be new opportunities for insurers in other emerging models – for instance, the sharing of e-scooters as a transportation method is gaining traction in several countries.”

Some US and European insurers have developed products for the sharing economy, while insurtech start-ups such as Metromile and Pikl have added to insurance coverage.

The report says partnerships between insurers, insurtechs and/or marketplace platforms are enabling cover to start when customers enter sharing economy activities, minimising any delays or friction, the report says.