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
Click on http://ww.ambest.com/v.asp?v=ridesharing714
to view this episode.
Recent episodes of A.M.BestTV include:
A.M.BestTV covers exclusive A.M. Best information and
reports, targeted topics and key developments in the (re)insurance
industry every Monday, Wednesday and Friday. Sign up for alerts of
episodes at http://www.ambest.com/multimedia/ambtvsignup.html.
View A.M.BestTV episodes at www.ambest.tv.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
[ Back To NFVZone's Homepage ]