Gone are the days where true friendship was officiated by shouting your mate a beer - now you can share the same insurance cover.

According to News Corp, a German peer-to-peer lending business Friendsurance is disrupting the banking and insurance industry with its unique proposition.

Friendsurance allows customers to form groups of around 10 people to chip in and help cover each other's small insurance claims including vehicles.

The report details that under the model, consumers can receive up to 40 per cent of premium back every day if no claims are made.

An Australian arm of the business is set to launch its first product next year.

Friendsurance Australia CEO Perry Abbott told News Corp the model will become more prevalent as the insurance industry evolves.

“Today there are at least 18 companies around the globe trying various forms of peer-to-peer insurance.

“The risks we are exposed to are different today than they were 20 years ago.

“Friendsurance wants to work with the insurance industry to offer customers new dimensions.”

What's the verdict - will the model take flight or flop in the Australian market?

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