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Insuring Uber NOT FOR FURTHER DISTRIBUTION

Insuring Uber - Intactontario.intactinsurance.com/myshare/uber/assets/insuring-uber... · Overview of Uber • Uber was founded in 2009 and one of the fastest growing companies ever

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Insuring Uber NOT FOR FURTHER DISTRIBUTION

Agenda

• Background

• Insurance overview

• Workflow and procedures

• Support materials

Background

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.

Insurance overview

The Uber insurance journey

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

Claims process

Workflow and

procedures

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.

Marketing and

communications

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