Insuring Uber NOT FOR FURTHER DISTRIBUTION

Transcription

1 Insuring Uber NOT FOR FURTHER DISTRIBUTION

2 Agenda Background Insurance overview Workflow and procedures Support materials

3 Background

4 The sharing economy is rapidly growing: The sharing economy Estimated to grow from $25bn to $335bn globally by 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

5 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.

6 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.

7 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.

8 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.

9 Insurance overview

10 The Uber insurance journey

11 The Uber insurance journey cont d 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

12 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.

13 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.

14 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.

15 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.

16 Claims 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.

17 Claims process

18 Workflow and procedures

19 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.

20 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

21 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.

22 Process in Contact Step 1 Step 1: Select No when answering whether the vehicle is used to carry passengers in the Assignment screen

23 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.

24 Marketing and communications

25 Support materials Tactic Primary audience Date available Location Broker bulletin Broker Thursday July 6, ed FAQ Broker Thursday July 6, 2016 Broker Portal & broker microsite Broker training presentation Product fact sheet Broker Thursday July 6, 2016 Underwriter Broker Thursday July 6, 2016 Contact your Business Development Manager 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,

26 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