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The New Economy — Is There an Insurance Opportunity?

Posted By Administration, Tuesday, April 3, 2018

First, we had the “sharing” economy. It was followed by the “gig” economy. Make way for the newest buzz and it’s the “on-demand” economy. It’s millennial perfect since it is along the lines of instant gratification.

Here’s the definition according to the website TheOnDemandEconomy.org. It is economic activity created by digital marketplaces and it fulfills consumer demand by giving them immediate access to goods and services.

When it comes to insurance our interaction with the on-demand economy is those driving for Uber, Lyft or for other ridesharing entities. Many of those drivers are signing up for two or more services like:

  Postmates — delivers anything from fast food to groceries to alcohol and more

  DoorDash — delivers anything like Postmates

  UberEats — local food delivery

  AmazonFlex — delivers products ordered from Amazon


There are others but you get the picture. A poll of 1,200 drivers by TheRideShareGuy blog says:

  80% of ridershare drivers have signed up for at least one of these or others

  18% have signed up for three

  6.9% have signed up for more than three

  6% are doing five or more


Harry Campbell runs the RideShareGuy blog. He said, “An overwhelming majority of drivers are signed up with at least one other service like Lyft and many are starting to look at alternative options like delivering food for DoorDash or delivering packages for Amazon Flex.”

Here’s the good news for insurance. Campbell said the poll shows under half of the people doing rideshare driving for Uber and Lyft are getting the message that their regular auto insurance policy won’t cover them for that gig.

  46.5% say they have purchased the correct insurance

  46.8% say they have

  6% won’t say at all


“The one surprising thing is that a majority of drivers still have not purchased rideshare insurance, even though now almost every state has a rideshare product,” Campbell said.

It is good news though because last year:

  33.3% of drivers had purchased the correct insurance

  58.3% had not


Part of the problem in the past has been the availability of insurance. Campbell said that has been overcome. “I believe every state now has at least one rideshare insurance option except upstate New York. New York City requires UberX drivers to have commercial insurance and with the recent launch of UberX outside of NYC in upstate, there are still no options for rideshare insurance,” he said.

Having the right insurance is important because Campbell added that 20% of rideshare drivers say they’ve been involved in an accident while driving.

Accidents are happening with rideshare drivers behind the wheel. The poll shows that one-in-five drivers have reported getting into an accident while driving.

As for the two major companies? Lyft has a better rating with its drivers than Uber. Overall job satisfaction and pay are the two company raters. All feel — however — that they are underpaid.

  Uber drivers average $16.90 per hour

  Lyft drivers make $17.37 an hour — 47 cents more than uber

  In 2017 the gap was $2 so things are improving

  Uber has the most drivers — 58.7%

  Driving for both Lyft and Uber — 20%

  Driving just for Lyft — 16.8%

  Driving for other rideshare services — 4.5%


Source link: Insurance Journal

Tags:  Insurance Content  Insurance Industry  Insurance News  The New Economy — Is There an Insurance Opportunit  Weekly Industry News 

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