The winner of January’s Qorus Insurance Innovation of the Month award is Allianz Partners’ and Indeez’ Vehicle Interruption Cover, a cutting edge solution that provides financial protection to UK Uber drivers during vehicle downtime due to an accident, ensuring they can maintain their income even when unable to work.
The rapid development of the gig economy in recent years has opened up uncharted territory for the insurance industry. Gig workers are particularly vulnerable to job insecurity and loss of income. Uber drivers are a prime example: if their vehicle is in an accident and requires repairs or replacement or is immobilized, that can add up to days or even weeks of lost earnings.
To address this challenge, Allianz Partners teamed up with Indeez, a European-based embedded insurance orchestrator, to create Vehicle Interruption Cover (VIC). This innovative pay-per-mile product offers flexible, usage-based coverage directly through the Uber app. Lump-sum payments through VIC help drivers cover lost income associated with vehicle immobilization due to an accident.
VIC builds on the existing Allianz Partners’ broader Protection Programme for Uber drivers in the UK, with plans for future expansion to other markets and gig economy platforms across Europe, continuing in partnership with Indeez to deliver innovative and tailored solutions. The core objective is to provide a safety net for drivers, who can often face significant financial strain when their vehicles are out of service.
The product's integration within the Uber app is a noteworthy example of embedded insurance innovation. Through a user-friendly interface, drivers can manage their coverage in real time. The pay-per-mile system allows drivers to only pay for the miles driven with active coverage, offering them a cost-effective solution that adapts to their individual usage patterns. This is a departure from traditional insurance models that typically require fixed premiums regardless of usage.
VIC also offers a high level of flexibility. Drivers can opt-in or -out of the coverage at any time through the app, allowing them to tailor their protection according to their work needs. Premiums are transparently calculated and deducted at the end of each trip, making the process straightforward and ensuring drivers remain in control of their expenses.
The partnership between Allianz Partners, Uber and Indeez combines their respective expertise in insurance, technology and gig economy services. Allianz Partners brings its leading insurance knowledge, Indeez brings advanced embedded insurance experience and technology, and Uber provides direct access to its vast network of drivers. This collaboration reflects a commitment to innovation and positions the partners as leaders in the growing gig economy insurance space.
Since its launch in November 2024, VIC has achieved impressive early performance metrics, with millions of trips covered already. This promising start indicates a robust and sustainable performance, with the potential for broader adoption in other markets and industries.
Overall, VIC is a significant step forward in creating more secure and flexible insurance solutions for gig economy workers. As a noteworthy attempt to transform insurance in order to address societal changes, specifically the emerging needs of the gig economy, we are pleased to spotlight this solution as Insurance Innovation of the Month for January.
As Insurance Innovation of the Month for January, Indeez & Allianz Partners’ project will automatically be nominated for the Qorus Innovation in Insurance Awards 2025. Submit until 7 February 2025 to compete for the February Innovation of the Month Award.
