Interesting, but it seems pretty different from P2P lending. For instance:

As an individual investor, how much control do I have over who I am insuring? I suppose I am subject to some determination made for the crowd. Part of the appeal of P2P lending (for some) is choosing your borrowers.

How is my downside capped?

How can investors assess the riskiness of insured parties?

Lendingclub has pretty clear answers for these questions. How does it translate to insurance.

more information needed on your model. I few parallels I try to think of are not at all appealing.

Only format I think of at the moment that could work wouldn't actually be significantly different than just buying stock in an insurance company.

If p2p loans are profitable why isn't there a company or bank offering something similar?

an update on my p2p investment:

*initial investment of $2,950, disbursed over the span of ~month, on year ago.

*all $25 investments into 36 month notes; weighted average rate was 17% (basically all C, D, E, F notes)

*combined return is 12.55% (primary note return is 16.16% and my 6 sold notes returned -75.74%)

*16 notes are fully paid, 3 are in the late 3-120 days category; rest are current

*to date have received 1,117.48 in principal, $441 in interest.


overall very happy with the results. initially it's a pretty big time sink but after you deploy your investment it more or less runs itself though you should check in a couple times per week to monitor defaults and stuff. happy to answer any Qs

What's your credit score?

cool scorey bro

My LC stats:

Adjusted Net Annualized Return: 6.47%
Weighted Average Interest Rate: 16.09%
Weighted Average Age of Portfolio: 46.6 mos
Number of Notes: 327

Just been withdrawing for the last 2 years and will continue until the account is empty. Was a decent experiment but not worth the risk imo