Googley insurance

I love it when folks extend the ideas in What Would Google Do? to their own companies. Peter Cameron-Inglis imagines Googley insurance in a cooperative community:

A Chamber of Commerce could be a perfect platform for this idea. Our local Chamber of Commerce acts as a referral/partnering agency right now with Underwriters Insurance. But, what if it started a cooperative insurance offering of its own and the coverage of claims were voted on by the board based on a collective set of rules. We live in a social community and fraud would be less likely if those of us who were insured through this cooperative program were held accountable by our own business colleagues and friends. I think it could work. What do you think? Wow or Whoa?