As heavily dependent upon insurance as Uber is, the company has said it is not interested in entering the insurance business. Rather, the global transportation firm is content to focus on being an “intelligent purchaser” of insurance, continuing to work with insurance carriers and brokers.
“No, to be honest, we’re trying to get out of the insurance business,” Curtis Scott, global head of insurance for Uber, said at the Insuretech Connect Conference (ITC) last October.
Citing reports of other tech firms including Amazon showing an interest in insurance,he said Uber is not among them. “I can tell you that Uber doesn’t have a desire to. We are good at being a tech company that’s in logistics and we want to do that. That’s what we’re strong at,” he said.
Lesson is that the insurers that achieve the same scale and competence of digital transformation as Uber stand to gain the lion's share of its insurance cover. And vice versa!
For some of their insurance needs, Uber and its drivers rely on traditional insurers. Insurance for Uber’s ridesharing operations include third-party automobile liability, automobile comprehensive and collision, physical damage, and uninsured and underinsured motorist coverage. Allstate provides Uber with commercial auto insurance in some states. Uber has partnered with Allstate, Farmers, James River Insurance, Progressive and other carriers to develop coverage for its drivers that supplements their personal auto policies that do not cover commercial use. Various other insurers including Geico, Slice, State Farm, American Family, Liberty Mutual, Mapfre, Mercury, Erie, Travelers and MetLife have come out with their own insurance policies for drivers.