Individuals renting out rooms in their home for overnight stays, individuals jointly owing a car with other owners, and individuals who give rides to people who call or text them are creating "new" liability exposures for insurers. The social change that creates these new liability exposures is called
A) the millennial generation.
B) the baby boom factor
C) the greying of America.
D) the sharing economy.

Question

Quizplus · Accepted Answer

The sharing economy refers to the recent economic and social shift towards shared consumption, where individuals rent or share resources with one another, such as homes, cars, and services. This shift has created new liability exposures for insurers, as traditional insurance policies may not provide sufficient coverage for these novel risks. Thus, the best answer is D, the sharing economy. While the other options, such as the millennial generation or the greying of America, may contribute to the growth of the sharing economy, they do not capture the essence of this social change and its impact on insurance. Therefore, D is the most accurate and appropriate answer.

Individuals Renting Out Rooms in Their Home for Overnight Stays