OLDWICK, N.J.--(BUSINESS WIRE)-- This episode of A.M.BestTV looks at the spread of ride-sharing services such as Uber, Lyft and Sidecar into U.S. and world markets, and how insurers are saying that policies, underwriting considerations and limits designed for personal auto coverage should not apply to those driving for profit. Meanwhile, the National Association of Insurance Commissioners (NAIC) and others are taking a fresh look at the role of insurance in these new auto services.
In response to the growing ride-sharing business, in which essentially anyone can become a professional driver, Jeanne Salvatore, senior vice president for public affairs and chief communications officer at the Insurance Information Institute (III) says, “Your personal auto insurance policy was never intended to be used as a business.” Salvatore explains that if you are picking up someone, giving them a ride and charging them money, you are now operating a livery. Personal auto insurance policies do not cover this type of risk. Companies such as Uber, Lyft and Sidecar act as brokers for people seeking employment as either full-time or part-time taxi drivers. Typically drivers for these companies are covered by a $1 million policy, which goes into force from the time the driver has accepted a job until the moment they have dropped off the paying customer at their destination. Salvatore says it’s likely that specialized insurance products will be created for this specific need.
Click on http://www.ambest.com/v.asp?v=ridesharing714 to view this episode.
Recent episodes of A.M.BestTV include:
- Global Regulators Update Capital Plan; Life Sales Sag: The International Association of Insurance Supervisors (IAIS) draws criticism after seeking an August 2014 deadline for comment on their updated capital requirements plan: http://www.ambest.com/v.asp?v=news71114
- Global Risk Roundup: Hailstorms Take a Surprising Toll: A.M.BestTV rounds up the severe weather events that have impacted the global insurance industry, including devastating hailstorms in Europe and the United States that are driving claims for insurers. In addition, floods, windstorms and earthquakes take their toll in China, Thailand and Japan: http://www.ambest.com/v.asp?v=globalrisk714
- First Monday: Leading Analysts, Key Topics: This “First Monday” looks at a sharp decline in U.S. property/casualty impairments; insurance market development in the Association of Southeast Asian Nations region and China's approaching solvency system overhaul: http://www.ambest.com/v.asp?v=firstmonday714
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Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
Source: A.M. Best