Insurtech company Guevara closed down last month, casting doubt over the future of the peer-to-peer insurance model.
According to Guevara, the company failed to establish a fully capitalised underwriting vehicle.
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The business was formed in 2013, an early entrant into the UK insurtech scene which has only become established in the last few years.
It grouped customers together, who pooled premiums and received refunds if any capital remained unclaimed at the end of the year. It also created an app that collected data from the scene of an accident.
Perhaps the difference between Guevara and other start-ups trying to lay roots was that it targeted the motor insurance sector, where many customers still feel more comfortable trusting established brands.
The motor market also brings difficulties around profitability and costs for potential capacity providers.