Sharing economy and insurance in the hospitality industry

Abstract

The purpose of the article is to study the peculiarities of insurance in the shared use sector of the hospitality industry, taking into account the specifics of this sector of the economy. To achieve this goal, the authors sets the following tasks: (1) to determine the specifics of the sharing economy; (2) to assess current trends and prospects for the development of the hospitality industry market in the sharing sector; (3) to study foreign experience of insurance in the field of short-term rental housing through online sharing platforms. The study found that the sharing economy is growing rapidly, gaining significant market share in some sectors. Experts predict that global revenue in this area will grow to USD 335 billion in 2025. An analysis of statistical data has shown that the shared-use sector in the tourist accommodation sector in some EU regions not only recovered in 2022 but even exceeded the figures for 2019. This trend is quite logical, as during financal crisis, people tend to save money and choose budget holiday options. The analysis showed that user protection (health and safety, asset security, quality issues) is not fully guaranteed in the sharing economy. Standard home insurance policies in the US, for example, do not provide adequate coverage for paying guests in a private home. In addition, they do not protect homeowners from claims from guests. A positive example of how to address insurance issues in the sharing economy is the approach taken by Airbnb, which, in cooperation with insurance companies, provides protection for hosts and their guests. This experience will be useful for Ukrainian practice in the post-war period, given that in difficult economic conditions, demand in the sharing economy accommodation sector is growing significantly.