Commercial Ride Commercial Ride SharingSharing

““Is There An Insurance App Is There An Insurance App

For That???”For That???”

Your Panelists:Your Panelists:• Shannon KellyShannon Kelly

– Regional VP West, Farmers Regional VP West, Farmers Insurance/21Insurance/21stst Century Century

• Joe Thesing Joe Thesing – VP State Affairs, NAMICVP State Affairs, NAMIC

• Armand Feliciano, ACICArmand Feliciano, ACIC– VP California Government AffairsVP California Government Affairs

• Kara CrossKara Cross– General Counsel, PIFCGeneral Counsel, PIFC

• Carole WalkerCarole Walker– Executive Director, RMIIAExecutive Director, RMIIA

Commercial Ride Sharing 101What it is…What we need to fix…

TNC’s BOOMING BUSINESS

•20X annual revenue growth •Est. $100 million in revenue•100,000+ users in 2013

• Est. $1 billion in revenue• Est. 41 million rides in 2013• 2011 valuation: $300 million• 2014 valuation: $18.2 billion

Operating since 2012

Operating since 2011

Offers simple rideshare services with asignature pink mustache.

Offers black car service and simple rideshare with its UberX brand. Available in 100 US cities and 44 countries.

How it works: Indicate your location with a mobile app. The nearest driver picks you up. It’s a cashless transaction with everything charged via the net to your credit card on file.

*** At last estimate, Uber and Lyft had more than 70,000 drivers across the U.S.

Insurance Legislative Issues• TNC Driver Disclosure

• Bright line between PPA and Commercial Exposure Period (App on/App off)

– Three key time periods/situations:

• Period 1: “app on, no match” – time period where a driver has made him or herself available for hire, but has not yet been “matched” to a passenger in need of a ride

• Period 2: “match accepted to passenger pick-up” – time period from when a driver receives notice on a smart phone of a nearby passenger in need of a ride until the passenger enters the vehicle.

• Period 3: “passenger in the car to when passenger has safely exited the vehicle”

Insurance Legislative Issues• TNC Excess vs. Primary Coverage

• TNC Insurance Duty to Defend

• PPA carrier ability to introduce/maintain exclusions

• Flexibility for TNCs to Fulfill Insurance Requirements

• Other Coverage: UM/UIM, PD, Comp, Collision

• Access to Basic Claims Data and TNC Vehicle Use

Key PlayersKey Players• Ridesharing Companies (Uber & Lyft)• Cabbies• Insurance Industry• Trial Attorneys• State Legislature• Public Utilities Commission• Local government• Governor’s office• Federal officials• Tech Players (ie, Google)• The Media• Celebrities

Strategies to Consider• Who should take the lead?

–Insurers

–Taxis

–Ridesharing Companies

• Coalitions?-Insurers and Taxis

-Insurers and Trial Lawyers

-Others

In The News…In The News…

Ride Share Reality Ride Share Reality ShowShow• Armand FelicianoArmand Feliciano

– Uberx/Lyft Uberx/Lyft • Joe ThesingJoe Thesing

– Legislator Legislator • Shannon KellyShannon Kelly

– Insurance Company Insurance Company • Kara CrossKara Cross

– Insurance TradeInsurance Trade• Carole WalkerCarole Walker

– Reporter Reporter

Steering Through Steering Through Lobbying & Lobbying & Communications Communications StrategiesStrategies

What Worked, What Didn’t, Why It’s Not One-Size-Fit’s All!What Worked, What Didn’t, Why It’s Not One-Size-Fit’s All!

Waging WarWaging WarCO Earned/Paid Media, CO Earned/Paid Media, Grassroots, Lobbying, Grassroots, Lobbying, Social Media, Coalitions…Social Media, Coalitions…

KEEP uberX MOVING IN COLORADO!

Hey Carole,Colorado is a hotbed for innovation, a top destination for Millennials, and a national leader for entrepreneurship because of our culture and elected leaders who embrace progress (and of course our mountains!). UberX is one of those recent innovations; now it needs your help.SIGN THE PETITION & TELL YOUR LEGISLATOR TO SAVE uberX

The insurance and taxi lobbies will continue to use fear mongering scare tactics to fight uberX. Now is the time to take action - SIGN THE PETITION and let your voice be heard! With the help of the riding public, we will save thousands of jobs, provide more transportation options, and keep Colorado moving forward.

Uber On,Team Uber Denver

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CA: Battleground StateCA: Battleground State

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Questions????SITA Group Discussion