Zopa continue with their continual iterative improvements, this one being insurance to offer full protection for lenders, in return for a lessor interest rate.
This might be a couple of days later (We’re awaiting final regulatory clearance, but the system is all built) – but we’re delighted to be able to offer an insurance product for lenders that guarantees your money back – no matter what happens with bad debts.
Source: Zopa blog
Technorati tags: zopa, social+lending
Bankwatch 
Hi, Dave from Zopa here.
Thanks for the namecheck – we’re hoping that the capital guarantee insurance will open up Zopa to more lenders. Although we’ve only had 1 defaulting borrower in over 18 months of business, we know that many people are worried about the risk of Zopa. By allowing people to purchase insurance to remove that risk – we hope more people will be able to benefit from Zopa – both borrowers and lenders.
Cheers
Dave
Did anything ever come of this product? Could be a useful one to consider as recession bits and Zopa potentially see more rising bad debts.