In an innovative move by ridesharing juggernaut Uber, the company has partnered with a traditional insurance company to create a first-of-its-kind ridesharing insurance coverage. This novel idea may pave the way for all major insurance companies to get in the game of providing ridesharing insurance as it is clear that on-demand ridesharing, and Uber for that matter, are not going away anytime soon.
Yet the company still faces a myriad of legal challenges and one of the key issues around the world is insurance. It seems both the company and big insurers are now keen to turn this problem into an opportunity.
Specifically, in Canada, Uber Technologies Inc. is partnering with Intact Financial Corp. to develop and create the first automotive vehicle insurance policy focused directly on ridesharing services. The newly created insurance policy hopes to fill in a gap that presently exists in the ridesharing industry. As it stands now, many Uber drivers and passengers are at risk of not being covered by traditional auto insurance policies.
A statement released by both companies provides that, “We have been working with Intact Financial to develop an innovative, new insurance plan for ridesharing in Canada that we hope will come to market soon. This plan will be the first of its kind designed exclusively for the ridesharing industry in Canada.”
Intact executive Louis Gagnon stated that, “With the growing popularity of the sharing and on-demand economy, we are adapting our product range to offer innovative solutions to meet the changing needs of consumers.”
As Uber rides in Canada are already covered by the company’s traditional auto liability insurance policy, it is unclear of the impact of the newly created insurance. The companies are offering few concrete details of the plan as they await approval from the country’s insurance regulators.
What is clear is the impact this type of partnership likely will have on the insurance industry as a whole. If Canada’s regulators approve this type of insurance, which is expected to occur, this could mean a whole new ball game for insurance companies across the globe as they seek to capitalize on the ridesharing industry.