Streaming insurance? How to prepare for the subscription economy 

Insurance pricing has historically relied on a simple premise: people own things, and those things need protecting. But consumption patterns are shifting. More people are starting to rent, borrow and subscribe rather than buy outright. The question isn’t whether this matters to insurers, it’s whether they’re ready to respond. 

Ownership is no longer the default

People aren’t just streaming films anymore, they’re starting to ‘stream’ cars, tech and even the places they stay. Gen Z in the UK now spends around £300 a month on subscriptions, with over 9 in 10 having at least one service, signalling a generation that expects access on demand rather than long-term ownership. At the same time, the global usage based insurance market has grown to over $60 billion and is forecast to keep expanding at more than 20% a year, as insurers increasingly use real-time data from connected vehicles, devices and rentals to price how assets are actually used, not just owned. 

In the UK, exciting platforms like By Rotation and Fat Llama are enabling users to rent everything from designer handbags to power drills and accommodation in the speciality goods space. This smarter form of peer-2-peer (P2P) insurance is driving the usage based insurance (UBI) market. By applying intelligent algorithms and existing platform data, providers can create simple but accurately priced products for a particular rental period. The World Economic Forum estimates that the P2P accommodation sector will grow at six times the rate of traditional hotels/hostels, all driven by digital platforms.  

This fits with the ‘X as a service’ trend that’s hit multiple industries. Mobility as a service, for example, brings public and private transport – from e-scooters to transit – into tone on demand platform, enabling seamless planning, booking and payment. Demand is rising with  40% of young adults saying they would go car-free if credible alternatives existed. 

What’s happening here isn’t just behavioural; it’s structural. Traditional insurance categories – speciality goods, travel, motor – were designed around stable, long-term ownership. But people are increasingly moving between P2P platforms, rental accommodation, car-sharing services and temporary stays.As the underlying risk profile evolves, so too should the cover 

Insurance in a world without ownership

In a world without ownership insurance based on use is the key. Several segments are already seeing significant adoption: 

• Personal possessions are also being insured more flexibly. By Rotation now offers insurance add-ons for high-value fashion rentals, while other providers are testing short-term cover for equipment, gadgets and sports gear. 

• Travel insurance has evolved quickly. On-demand policies tied to specific trips are increasingly embedded directly into booking platforms. For example, Cover Genius powers travel insurance for Booking.com and similar services, making the purchase almost invisible to the customer. 

• Motor insurance has moved furthest. Pay-per-mile and telematics-driven policies now account for over 20% of new auto policies in some mature markets. Insurtech providers like By Miles have built their entire commercial model around this flexibility. 

• Gig economy workers need cover that switches on and off. Platforms like Zego offer policies that activate only when someone is actively working, critical for drivers, couriers and others working part-time or across multiple platforms. 

There’s another dimension worth noting. Younger customers, particularly Gen Z, appear more likely to favour policies that reward environmentally conscious behaviour, such as recycling second hand goods or reducing car usage. This suggests that insurance decisions are becoming more values-driven, not just price-driven. 

Connecting where the customer is

The customer relationship is shifting. It increasingly sits with the platform, the rental marketplace, the ride-share app, the subscription service, rather than with the insurer. This means insurers need to operate as embedded infrastructure providers, enabling protection behind the scenes rather than owning the customer relationship. 

It requires a different operating model: API-first architecture, modular product design, real-time pricing capabilities. Brand visibility matters less than seamless claims handling and operational reliability. The insurer becomes the enabler, not the headline. 

What insurers should be doing differently

1. Price the behaviour, not the asset

Customers want insurance that reflects how they actually live: weekend cover for a rental car, per-trip protection for a borrowed bike, rented luxury goods insurance for special occasions. These aren’t fringe products, they reflect how consumption is changing and they align cost more closely with actual exposure. 

2. Embed insurance where transactions happen

People don’t want to hunt for standalone policies every time they rent or borrow something. The friction kills conversion. Insurance works better when it’s integrated into the transaction itself, visible only when needed, but automatic when triggered. 

Getaround includes insurance in every P2P car share booking. Airbnb automatically provides Host Protection Insurance on listings. The insurer becomes part of the platform infrastructure, not a separate purchase decision. 

3. Build policies around people, not possessions

Rather than selling separate products for each asset class, insurers could structure cover around the individual. A single digital policy that adjusts in real time: protecting someone when they drive a shared vehicle on Monday, rent camera equipment on Wednesday, and deliver groceries over the weekend. 

Zego demonstrates what this looks like at scale, combining API connectivity with platform partnerships to provide seamless, switchable cover. It’s operationally complex, but commercially viable. 

4. Segment customer by context, not just category

Beyond pricing for use, insurers should be tailoring products to distinct types of users. A student renting a bike occasionally has different needs from a gig worker driving full-time, even if they’re both using shared mobility. Likewise, Gen Z customers may value sustainable behaviour rewards more than older cohorts. Segmenting by lifestyle and intent, not just asset type, can help ensure that usage-based products reflect the needs of the people using them. 

Insurance doesn’t need to disappear into the background, but it does need to evolve. In a world moving from ownership to access, the winners will be those who insure moments, not just things.