The sharing economy
• Estimated to grow from $25bn to $335bn globally by 2025.
• Sharing economy companies provide more services than their
traditional counterparts, including three primary societal
benefits:
– Economic: more efficient and resilient use of financial resources
– Environment: more efficient, sustainable and innovative use of
natural resources
– Community: deeper social and personal connections among
people
The sharing economy is rapidly growing:
Overview of Uber
• Uber was founded in 2009 and one of the fastest growing companies ever.
• Leader of the ridesharing industry and largest sharing economy member company.
• Allows vehicle owners to generate extra income with a flexible work schedule.
• Uber pre-screens both the participating drivers and passengers and establishes the fare cost up front, ensuring a safe and affordable ride.
• Payment is handled through the mobile app via credit card, resulting in a safe and hassle-free payment.
Ridesharing: involves driving your personal vehicle while providing rides to paying passengers. Drivers are connected with passengers via mobile marketplace.
The challenge with ridesharing and existing insurance products
• There is no coverage on the standard personal policy if a driver is carrying a
passenger for compensation.
• If a driver wants to carry a paying passenger, prior to the development of
new products, an insurance company would:
– Add additional coverage onto the standard policy;
– Rate the risk commercially, similar to a taxi.
• Commercial premiums for taxis are based off of full-time commercial use.
– 51% of Uber drivers work 15 hours or less a week.
• This is not viable for a part-time driver whose primary occupation is not
carrying of paying passengers.
• Additionally, on road exposure for a part-time ridesharing driver is not the
same as a full-time taxi driver.
Why is Intact insuring Uber?
• Currently, many ridesharing drivers are at risk of having their personal auto policies cancelled by their respective insurers.
• Intact’s core business is focused on consumer protection and meeting the insurance needs of Canadians.
• In the development of the product structure, Intact referred to the following guiding principles:
• Must be simple for drivers and passengers to understand;
• Must be simple for drivers to obtain coverage;
• Must be simple for the industry to implement.
• With the safety of Canadians as a top priority, Intact decided to develop an innovative solution to meet the changing needs of consumers and ensure they are well protected.
Intact and Uber
Objective: Find insurance solutions that meet our customers’ needs as
participation increases in Uber while also protecting Uber drivers
and passengers and the general public.
Solution: Intact will offer commercial insurance that will cover all drivers
and passengers from the moment a driver makes themselves
available to accept a ride request, to the moment passengers
exit the vehicle.
The Uber insurance journey can be broken down into four phases:
Phase 0: Regular personal use of the vehicle and Uber driver is offline Phase 1: Uber driver is logged into the Uber app and available to accept a ride request but has not yet accepted one
Phase 2: Uber driver has accepted a ride request and is en route to collect the passenger(s)
Phase 3: Uber driver is transporting the passenger(s) to their destination
The Uber insurance journey cont’d
Insurance structure
• When Uber drivers use their vehicle for personal use (phase 0),
Intact Insurance, Novex, Jevco and belairdirect customers are
protected as usual under their personal auto insurance policy at no
additional cost.
• The Uber commercial insurance policy provides coverage to all
vehicles, drivers (regardless of their personal auto insurance
provider) and passengers from the moment drivers make
themselves available to accept a ride request (phase 1), to the
moment passengers exit the vehicle (phases 2 & 3).
• The commercial policy is issued to the corporation of Uber and Uber
is responsible for the payment of the premium.
The Uber commercial policy
The Uber commercial insurance policy provides coverage up to
the following limits:
• $1 million Third Party Liability for phase 1
• $2 million Third Party Liability for phases 2 and 3
• Standard Accident Benefits for phases 1, 2 and 3
• Comprehensive and Collision coverage with $1,000 deductible
payable by drivers for phases 1, 2 and 3
* Only drivers who hold comprehensive and collision coverage on their
personal auto policy will be eligible for this coverage under the Uber
commercial policy.
The Uber commercial policy cont’d
• Policy provides Third Party Liability and Standard Accident Benefits
coverage.
• The Uber commercial policy does not provide any optional
coverages, regardless of what is included on the customer’s
personal auto policy, other than Comprehensive and Collision
(physical damage).
• Comprehensive and Collision coverage, with a $1,000 deductible, is
only available to drivers who have this coverage on their personal
auto policy.
• Drivers participating in ridesharing must inform their broker, who
should then advise the personal auto insurer of the customer to
ensure they are properly protected for non-ridesharing use of the
vehicle.
Which services do we insure?
• Intact Insurance only insures Uber’s ridesharing operations (UberX, UberXL,
Uber Select, UberHop and UberPool).
• Commercial policy provides coverage for UberEATS drivers if driver also
participates in ridesharing with Uber.
• If driver only drives for UberEATS, there is no coverage on Uber commercial
policy.
• Personal lines underwriters should treat drivers who only drive for
UberEATS the same as they would for any other customer who delivers
food.
• Since UberEATS delivery is not time sensitive, these drivers can be written
through our Commercial Auto (IRCA) department.
• Any claims arising during phases 1-3 will be made against the Uber
commercial policy.
• Drivers should reference the Uber electronic certificate of automobile
insurance (available on the Uber Partner mobile app) in order to
ensure Uber-related claims do not affect their personal auto policy.
• In the event of driving infractions, infractions may follow the individual,
potentially affecting personal auto policies of drivers.
Claims
Process for brokers
For Intact Insurance, Novex or Jevco, there is no change to their personal auto policy wording, however, a note must be added to their policy file in Savers Plus or Contact.
The note must state: [Insured participates in ridesharing with Uber. Vehicle(s) used (model year, make, model): Driver(s):]
New business:
• The note must be made when the policy is bound. You do not need to speak with an Underwriter in order to bind coverage when the insured advises that they are an Uber driver.
Mid-term or on renewal:
• Add a note effective the day you are notified that the insured is an Uber driver.
Process in Savers Plus – Step 1
Step 1: Select “No” when asked whether the vehicle will be
used for carrying passengers in the “Questions” tab
Process in Savers Plus – Step 2 & 3
Step 2: Add comment
[Customer participates in ridesharing with
Uber.
Vehicle(s) used (Model Year, Make, Model):
Driver:]
Step 3: Click “Save”
*Note: please list all vehicles, along with the year, make and model.
Process in Contact – Step 1
Step 1: Select “No” when answering whether the vehicle is used to carry passengers in
the “Assignment” screen
Process in Contact – Step 2
Step 2: Add the following to
the policy comments:
[Customer participates in
ridesharing with Uber.
Vehicle(s) used (Model
Year, Make, Model).
Driver:]
*Note: please list all vehicles, along with the year, make and model.
Support materials
Tactic Primary audience Date available Location
Broker bulletin Broker Thursday July 6, 2016 Emailed
FAQ Broker Thursday July 6, 2016 Broker Portal & broker microsite
Broker training
presentation Broker Thursday July 6, 2016
Contact your Business Development
Manager
Product fact sheet Underwriter
Broker Thursday July 6, 2016 Posted on broker microsite
Broker microsite Broker Thursday July 6, 2016 intactmyshare.com
Intact website Customer Thursday July 6, 2016 intact.ca
Uber blog Customer Thursday July 6, 2016 http://t.uber.com/ONInsurance
Resources
Need more information? Broker microsite
Intact website
Uber Blog
FSCO – Ridesharing page
Broker Portal
Commercial Lines Community
PL Infomart
Questions? Contact your Business Development Manager