How Embedded Insurance is Revolutionizing On-Demand Insurance
Signing up to apps like Uber, Lyft & DoorDash has never been easier. In a few taps, your application is complete and you’re ready to go.
So why hasn’t commercial insurance kept up with the changing industry? Getting commercial insurance often means visiting a broker shop and waiting several days for paperwork approval. For a driver, the wait results in potential lost earnings and days of the road not working.
Additionally, the way that people use their vehicles is changing. Personal vehicles can now be used for the transportation of passengers, as well as food delivery and carrying out courier deliveries. Therefore insurance companies need to adapt to the changing world of personal and commercial vehicle use, and where these lines blur.
Furthermore, for some drivers, finding a job can be challenging, with many coming from marginalized and under-represented communities. Getting insurance can be extremely frustrating, and for many drivers traditional motor insurance is a particular pain point, not least a lost opportunity for insurance providers.
The Benefits of On-Demand Work
Driving for companies such as Uber gives drivers the freedom to work to their own schedule. You can work full or part-time, even for a few hours outside of usual work as a side hustle. With hundreds of hours covered in the day, passengers are almost guaranteed a ride, and drivers receive their income.
Traditional insurance however presents a problem – there are many gray areas when it comes to how incidents are covered. Usually, drivers are covered through their personal insurance if:
– The vehicle is being used for social, domestic and pleasure purposes
– The vehicle is stationary, with no passengers, and the on-demand app enabled.
But what about occasions where an incident occurs with a passenger on board; or if the drivers themselves are at fault whilst on a ride request? It is precisely these occurrences that can cause a lot of confusion for drivers and their insurance companies.
Our CEO Dan Bratshpis speaks to Financial Derivative about the explosion of on-demand delivery and rideshare apps and its many challenges. He explains how INSHUR has created their embedded insurance solution to deliver drivers fair, accessible policies from their phones or computers.
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Traditional commercial insurance has been historically clunky and is far behind what drivers now expect from their insurance. Plus, the expense can be a hefty dent in a driver’s take-home pay, with Finance Derivative claiming that an insurance policy could cost over $10,000.
As digital insurance providers, what can we do about the challenges facing commercial drivers today? As INSHUR continues our statewide expansion, we know we will come against these problems time and again, but we know we have the solutions and tech to meet them head-on.
Essentially, embedded insurance provides immediate relief to the challenges faced by drivers and their old-fashioned insurance policies. If a driver is involved in an accident, they can tap Make a Claim in their app and be directly linked to their insurance provider. There’s no need to fill out complex forms as all details are pulled through from their driver platform or app. It is this seamless linkage that makes embedded insurance attractive to platforms such as Uber or Lyft.
As a result, drivers can drive in the confidence that they are always linked to help and assistance should they need it. The overall outcome is happier and safer drivers and insurers improving their underwriting results.
Embedded insurance presents an all-around solution for drivers, their platforms and insurers.