3 ms·
The guarantee is probably handled by pure insurance companies, who have been dealing with fraud successfully since before the Code of Hammurabi.
by pemulis 15y ago
The guarantee is probably handled by pure insurance companies, who have been dealing with fraud successfully since before the Code of Hammurabi.
- hugh3 15y agoAre you sure? In a low-fraud world, it's probably cheaper for airbnb to insure against it themselves than to outsource that to somebody else. You don't insure against a large number of small losses, you insure against the possibility of one big loss -- this is why you buy car insurance but Avis doesn't.
- gst 15y agoAt least in the short-term there is one big risk for them: They don't know how many users will claim that there have been damages. So they don't really know how much this insurance will cost them. By outsourcing the insurance to an insurance company it's not their problem. It's the task of the insurance company to assess the risk and Airbnb knows beforehand how much it has to pay.
- fletchowns 15y agoIs a big insurance company going to be willing to insure people that are illegally subletting their apartments?
- Powells 15y agolast I heard, they are still shopping around for insurance companies and that was at lunch today.