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Embedded Insurance and the On-Demand Driver



Author: Dan Bratshpis, Co-Founder and CEO, INSHUR


The platform economy is rocketing. In 2022, Uber drivers completed 7.6 billion trips, generated $14 billion revenue from ride-hailing, and $10.9 billion from mobility; since 2018, Amazon Delivery Service Partners (3,000 entrepreneurs and 275,000 drivers) have generated $26 billion in global revenue.

We are relying heavily on on-demand drivers to keep us going with transportation, food and package deliveries. Yet, for on-demand drivers on platforms such as Uber, Lyft, Amazon, Bolt, Deliveroo, DoorDash and others, buying suitable auto insurance that fits their flexible working lifestyles can be a challenge – and a significant expense.

On-demand drivers often use their personal vehicles which convert into commercial ones, meaning auto insurance needs to adapt to how their vehicles are used. They are also often from marginalized communities and use these platforms as their sole source of income, so are likely to be at the most socioeconomically challenged end of the spectrum.

Although our lifestyles have moved from traditional brick and mortar to on-demand services, insurance for these drivers simply haven’t kept up with the on-demand nature of driving, thus creating a pain point and an area of uncertainty for them, as well as a lost opportunity for platforms and insurers.


Insurance and the On-Demand Driver

In most of Europe and in a few US cities such as New York City, on-demand drivers need to hold commercial auto insurance as they are seen as professional drivers. The beauty of on-demand work is that drivers can choose when and where they want to work, meaning some drivers are driving for on-demand platforms part time to supplement their income. Unfortunately, traditional commercial auto insurance applies a blanket approach which makes little financial sense as on-demand drivers self-manage their hours, type of work, location and duration.

In other parts of the world and most of the United States, mandatory insurance regulation applies a different approach for on-demand drivers which is based on defined usage called “Periods”. Period 0 is when the car is being used for social, domestic or personal purposes only; Period 1 triggers when a car is stationary and empty with the on-demand app enabled. Period 2 applies when the car is on the way to collect a passenger or pizza, and Period 3 commences when the passenger or pizza is on board and being transported to its end destination. Each period has a specific insurance protection associated and is an important element in the US when insuring on-demand drivers; and these can vary by state.  Effectively, on-demand drivers using their own personal vehicles are usually covered through their personal auto insurance for Period 0 and sometimes Period 1. However, these complexities can often result in many gray areas that cause a lot of confusion at point of claim.

In addition, the buying experience for commercial insurance is also not in line with modern day experiences. Drivers who need to apply for commercial auto insurance often involve them having to physically visit a shop with a broker who then submits the application to the underwriters at the carrier. All in all, getting insurance can take days meaning the driver is forced to stop working and earning, thereby affecting their income. Insurance simply hasn’t kept up with the seamless digital experience provided by the platforms they use.

It’s a conundrum as on-demand drivers play a huge role in our society, particularly since the pandemic.  So why should they have to navigate coverage complexities like this? Why do they need to purchase products that do not align with their working habits? Why should it take days to weeks for insurance coverage to be granted? And why should a driver be forced to lose earnings because there is no immediate protection or there is a ‘blurring’ of lines with protection?

Insurance has fast become a millstone around the necks of on-demand drivers who want insurance to match the digital experience of subscribing to a driving job, without having to pay a premium or manage the complexities of coverage. Some commercial auto insurance policies can cost upward of $10K annually which is a huge chunk from a driver’s income, especially if they are driving to already make up for an income shortfall.

The insurance industry owes on-demand drivers fair, accessible policies, and this is where embedded insurance plays a significant role.


Embedded Insurance: Revolutionizing On-Demand Driving

Embedded insurance offers an immediate solution. While it has become a popular concept for consumers who now often tag on protection at the point of purchase for items like concert tickets, travel, health and car hire, the auto insurance industry is just starting to realize the benefits of embedded insurance. By purchasing insurance products and making claims via apps linked to on-demand platforms like Uber and Amazon, drivers can expect a seamless, frictionless experience which quickly matches them to the appropriate coverage for the type of work they do (transportation or courier), factoring in a myriad of data points including duration and location.

Effectively, embedding insurance eliminates the need for drivers to go through additional manual steps or fill out complex forms to obtain auto insurance, as all the data is collated from the platform or app. Platforms offer insurers a direct link to the driver meaning sharing of alternative data allowing for better underwriting, leading to better loss ratio and competitively priced insurance products. Drivers are not only matched to appropriate insurance, but also covered for risks they didn’t realize they needed. As a result, drivers can simply ‘tap and drive’ with the confidence that they are comprehensively protected at the right price. The outcome is drivers getting more suitable products; platforms having happier, more content drivers; and insurers getting better underwriting results; making it a win-win-win for all three: the platform, the driver and the insurer.


Underwriting the Two Ps: Price and Protection

Embedded insurance can make a huge difference to the financial wellbeing of on-demand drivers as insurers can develop fair pricing products for each individual based on a wealth of information.

Underwriting plays a significant role in providing a fair policy for the on-demand worker, especially with drivers switching between types of work, such as from livery to courier. Furthermore, technology, dynamic pricing and deep understanding of insurance loss ratios are factored into the algorithms, which can crunch quickly through other data points to offer personalized insurance products for individual drivers.

Data from the platform (such delivery or trip data)), from claims and other proprietary datasets relevant to the on-demand worker such as speed, incidents, driving ability and safety, ensures that coverage is comprehensive and adaptable to the type of work the on-demand driver chooses to do. Embedded insurance offers on-demand auto insurers the opportunity to leverage all this data and mitigate any risk of alienating a huge workforce that has chosen flexibility and financial control over traditional working patterns.

On-demand drivers are leading the charge of the on-demand economy and through the convenience of embedded insurance solutions, their hearts and minds can be captured and the industry transformed.

Embedded insurance produces a symbiotic relationship between the on-demand driver, the insurer and the platform: each benefits from the involvement of the others, ultimately developing deeply personalized underwriting coupled with accurate pricing models that lead to an amazing customer experience that fosters loyalty.  Auto insurance now has the opportunity to revolutionize itself for the on-demand economy.



Unified ticketing: how can transport stakeholders ensure interoperability?




Arnaud Depaigne, Product Manager – Smart Mobility, and Taoufik Sakhi, VP Deputy – Technical Advisory at Fime


Public Transport Operators and Authorities (PTOs / PTAs) are under constant pressure to deliver a reliable service. And with different passenger groups to consider, each with unique demands, operators must develop smarter and more innovative ticketing experiences to keep up with the rapidly evolving smart mobility landscape.

PTOs and PTAs must work with other stakeholders in the transit ecosystem to create solutions while navigating incumbent systems, funding concerns and ever-changing political challenges. All of this must be considered while ensuring that ticketing systems meet the needs and expectations of passengers. In the second blog in our series on unified and interoperable ticketing, we will explore the factors that transport stakeholders must consider when implementing a unified ticketing approach.

Political and administrative considerations

Public transport is by its very name public. Be it operated by governmental organizations (at either the local or national level) or by private enterprise, it remains at its heart a public service. This means that it is subject to the scrutiny and regulation of local and regional decision makers and is often at the center of legislative discussions.

Political representatives frequently champion policies that directly impact transit networks. A common example of this is promoting free or concessionary fares for youth, students and seniors. Others may endorse large-scale infrastructure projects or network overhauls as part of their campaigning. However, this can also go the other way, with certain candidates advocating defunding or eliminating transit projects entirely.

This creates an even greater challenge when a network extends across two or more administrative boundaries. Two neighboring areas may have administrations which prioritize public transport differently. This can mean a network must deal with discrepancies between investment in modern infrastructure, funding and fare concessions. By adopting a unified ticketing model, transport stakeholders can work together to develop an interoperable regional network while remaining compliant with legislated priorities, as well as encouraging a modal shift away from private vehicle usage.

Funding to cost saving

The budget a network must work within is another major differentiator between networks. As mentioned above, the local government often has a large role in dictating this, but other factors such as ridership and ticket sales can have a significant impact too. Funding can also be obtained through Public-Private Partnerships (PPPs), which may require the operator to work within a framework dictated by a third party to achieve certain profitability targets.

Another concern is legacy debt and the available cash flow of a network. The timelines for implementing a new ticketing system are typically quite long, as specifications and deployment plans need validation from multiple stakeholders. These can include the national and local authorities, employee unions and passenger unions in addition to PTA, PTOs and suppliers. Engaging these stakeholders at the build stage can be crucial to reducing costs later on. In doing so, a system can be designed to meet user needs without unnecessary complexity, helping reduce potential project expenditures and the technical risks of integration. During the run phase, it enables more flexible equipment procurement and operational efficiency while also improving maintenance and staff skill management between operators.

Working within a fragmented market

Unlike the telecommunications or payments ecosystems, there is no globally recognized initiative for the standardization of ticketing. Initiatives such as ISO 14443 (contactless proximity cards), ISO 24192 (communication between contactless readers and fare media in public transport), CSN EN 12896 (Reference data model – Transmodel), CEN/TS 16614 (Public transport network topology exchange format- NeTEx), General Transit Feed Specification (GTFS) and others, have attempted to create consistency. However, each of these allows for an element of interpretation to account for local needs and requirements.

Furthermore, incumbent ticketing solutions have most likely been developed by market leaders in each region over a number of decades. These solutions each have their own design choices, with decisions driven by industrial optimization. Upgrades to stay in line with contemporary norms are often expensive. Additionally, meeting new operational requirements while keeping incumbent systems up and running can drastically lengthen the migration process.

While migrating to unified ticketing may require a significant effort to begin with, the long-term benefits make it worth it, as PTOs and PTAs are prepared for potentially the next decades of operations and upgrades. It places PTAs and PTOs in a strong position to protect their sovereignty, supported by industry leaders championing open standards. Unified ticketing development can pool the resources of operators and authorities, accompanied by partners that will manage integration and implementation with minimal disruption to the existing ticketing systems.

Finding the right solution

PTOs, PTAs and transit solution providers undoubtedly have a complex task designing and implementing flexible, scalable ticketing solutions. They must meet the evolving demands of customers while navigating numerous legislative and regulatory requirements dictated to them by local authorities. Unified ticketing is a way that resources can be combined and optimized to help provide a quality service and achieve operational efficiencies while keeping on track for their profitability targets.

Fime can work alongside multiple operators to guide them through the process of pooling their resources to create a unified ticketing system that works. This ensures that they meet the technical and quality standards they pride themselves on, while also complying with their transit policy and budget constraints.

Learn more about how Fime can help you accelerate your ticketing offer to create frictionless unified ticketing for passengers.

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Provenir and Trustfull Agree Global Partnership




Trustfull and Provenir to deliver innovative risk decisioning using digital footprints via new global partnership.

Trustfull, the digital risk decisioning platform and Provenir, a global leader in credit and fraud risk decisioning technology have announced a global partnership that sees Trustfull joining Provenir’s Data Marketplace.

Trustfull enables companies to leverage the power of alternative data and digital footprint analytics to enhance their identity screening, prevent fraud, and improve digital onboarding experiences through advanced trust and risk signals coming from email, phone number, IP address, device, and browser data.

Provenir is a global leader in credit and fraud decisioning solutions that enable financial services organisations to redefine customer decisioning by optimising any decision across the customer journey. With a low-code UI,  dynamic data orchestration, and flexible analytics deployment, Provenir’s AI-powered decisioning platform powers enhanced decisioning accuracy, speed and agility.

Provenir’s Global Data Marketplace brings together offerings from data partners around the globe and creates an ecosystem for organisations that are seeking an easy-to-use cloud solution for data consumption across their decisioning processes. With fully maintained API connections to both traditional and alternative data providers, organisations can easily add and test new data sources in minutes.

The synergy created from this partnership will provide clients access to a vast array of data sources, including new alternatives from social and web apps, telco data, among others — all seamlessly integrated with the Provenir decisioning engine, enabling clients to make smarter risk decisions faster. Most importantly, Trustfull clients will benefit from a data source that is truly global, allowing integration with any international market.

“We’re excited to welcome Trustfull to the Provenir Marketplace as we see increasing demand from clients on new sources of digital signals to further verify identity and prevent fraud,” said Carol Hamilton, Chief Product Officer at Provenir. “Trustfull’s solution brings a unique blend of data sources, accuracy, and risk scoring that is perfectly aligned with the Provenir decisioning technology.”

Alex Tonello, Chief Revenue Officer at Trustfull said about the partnership: “This strategic collaboration with Provenir is perfectly aligned with Trustfull’s ambition to become the preferred destination for enterprise clients seeking technology to support more accurate risk decisions, especially during a pre-KYC screening phase. Most importantly, the partnership offers clients an easier, single point of integration for organisations looking for comprehensive risk orchestration.”

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