It seems as though every few months there is a rumor about some other tech company getting involved in the insurance industry. At a high level, it makes sense. Insurtech companies actually are delivering on their promise to disrupt the insurance industry through their us of AI and big data. However, it is important to remember that not every rumor turns into reality. As it turns out, that’s the case when it comes to Uber.
Contrary to the stalwart belief of many on the internet, Uber is not interested in getting involved in the insurance industry at this time. While they are not interested in becoming an insurer themselves, Uber is still working with insurance carriers and brokers to provide adequate insurance options for their independent contract drivers.
Curtis Scott, global head of insurance for Uber recently spoke about the possibility of Uber getting involved in the insurance market at the Insuretech Conference in Las Vegas. According to Scott, ““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…“Insurance companies are good at being insurance companies and that’s hard to do”.
Insurance is a tricky space that is integral to the success of ride-sharing companies. While becoming an insurer may seem attractive at first, the complexity involved with that path is often underestimated. Which is why it is likely that we see other ride-sharing following in Ubers footsteps. It makes sense to partner with carriers to offer comprehensive policies, rather than trying to create policies from scratch.
Uber has a message for insurers who may be interested in working with them. According to the Insurance Journal, Scott is ‘“interested in insurers that ‘really want to solve a problem’ and that have ‘people who really understand it from every angle.’ He is not interested in working with firms he calls ‘vampires’ that just want to come onboard because Uber is ‘cool and they think that they want to be cool too.’”.
Will Uber ever get involved in the insurance market as a carrier? Maybe. Either way, it seems as though the ride-sharing giant has no interests in making that happen anytime soon.