The Sharing Economy
The meteoric rise of the sharing economy has led to significant industry and public debate on how to handle the opportunities and challenges this new market presents, In line with our vision to excel at securing and enhancing the financial wellbeing of people, businesses and communities, whilst the sharing economy is still emerging it is important that CommInsure position our product to be able to adapt to this market place and ensure the financial wellbeing of our customers who are engaging in the sharing economy are protect.
The rapid growth in the sharing economy – in both company start-ups and consumer uptake –suggests that these new models and alternative consumption methods have satisfied a desire for a combination …show more content…
This is a real area for attention for Australian insurers, making sure that people know what they’re doing in terms of the risks they’re taking if they list their asset or use someone else’s asset in the sharing economy.
Both Airbnb and Uber provide a minimum level of cover for their Host/driver partner’s with the following cover;
• Airbnb’s Host Protection Insurance programme provides primary liability coverage for up to $1 million per occurrence in the event of third party claims of bodily injury or property damage.
• Uber ridesharing driver-partners in Australia protected by at least AUD$20,000,000 contingent coverage for bodily injury and property damage to third parties by CGU Insurance Limited. In addition Uber requires all uberX ridesharing driver-partners to have a current policy of compulsory third party (CTP) and third party property insurance as a …show more content…
As such under CommInsure’s Car insurance policy again would exclude ride sharing in these states due to the exclusion that we will not pay for;
“Loss, damage or liability arising directly or indirectly from any illegal or unlawful act committed by you or the driver of your vehicle whether or not they are insured under this policy”
This would also raise reputational risks for the group. Should CommInsure decided to offer Uber X driver covers, as IAG have done, there is a high media and reputational risk whilst it is still illegal. When IAG announced it would cover customer who driver for Uber less than 20 hours a week, the Australian Taxi Association reported IAG to the ACCC for misleading customers about their coverage because if the illegal nature of ride
The meteoric rise of the sharing economy has led to significant industry and public debate on how to handle the opportunities and challenges this new market presents, In line with our vision to excel at securing and enhancing the financial wellbeing of people, businesses and communities, whilst the sharing economy is still emerging it is important that CommInsure position our product to be able to adapt to this market place and ensure the financial wellbeing of our customers who are engaging in the sharing economy are protect.
The rapid growth in the sharing economy – in both company start-ups and consumer uptake –suggests that these new models and alternative consumption methods have satisfied a desire for a combination …show more content…
This is a real area for attention for Australian insurers, making sure that people know what they’re doing in terms of the risks they’re taking if they list their asset or use someone else’s asset in the sharing economy.
Both Airbnb and Uber provide a minimum level of cover for their Host/driver partner’s with the following cover;
• Airbnb’s Host Protection Insurance programme provides primary liability coverage for up to $1 million per occurrence in the event of third party claims of bodily injury or property damage.
• Uber ridesharing driver-partners in Australia protected by at least AUD$20,000,000 contingent coverage for bodily injury and property damage to third parties by CGU Insurance Limited. In addition Uber requires all uberX ridesharing driver-partners to have a current policy of compulsory third party (CTP) and third party property insurance as a …show more content…
As such under CommInsure’s Car insurance policy again would exclude ride sharing in these states due to the exclusion that we will not pay for;
“Loss, damage or liability arising directly or indirectly from any illegal or unlawful act committed by you or the driver of your vehicle whether or not they are insured under this policy”
This would also raise reputational risks for the group. Should CommInsure decided to offer Uber X driver covers, as IAG have done, there is a high media and reputational risk whilst it is still illegal. When IAG announced it would cover customer who driver for Uber less than 20 hours a week, the Australian Taxi Association reported IAG to the ACCC for misleading customers about their coverage because if the illegal nature of ride