Leading Insurers threaten Uber with CMA investigation over new document system

Leading insurers are threatening Uber with a referral to the Competition & Markets Authority after the ride-hailing operator introduced a new insurance system that excludes a number of the biggest companies.

Uber has introduced a system called Instadoc, which it says is designed to streamline and simplify the documentation approval process for drivers. The Instadoc system will be in place by the end of the year, and Uber said the move would enable it to receive drivers’ insurance certificates directly from the providers.

In an email to drivers, Uber wrote: “This means that from December 1, 2021 onwards, we’ll only be accepting insurance certificates obtained from one of the Instadoc-approved insurance providers.”

But leading insurers including Plan and Aviva are not on the approved list – only the following eight firms: u Acorn Insurance / Haven Insurance (Motorcade) u Antillo u Freeway u Headway/Nelson/DCL u INSHUR u Mulsanne (Fare Cover) u Walsingham Motor Insurance Limited u Zego Uber has told drivers that if their policy is not from one of the approved providers, they must switch to one of them at next renewal, with a cut -off of November 30, 2021. Divers that do not comply will not be able to drive for Uber after that date.

Daniel Severin Plan Insurance

Plan Insurance’s head of business development Daniel Severin said the move would effectively reduce the available market in London for driver insurance for firms not on the list by up to 60%.

“How would you act if your business was about to lose 60% of the market it operates in, due to a closed market-place you are not being allowed into?” Severin asked.

Insurers not on the list are now in discussions with trade and government bodies including the Association of British Insurers (ABI), the Financial Conduct Authority (FCA) and, crucially, the Competition and Markets Authority (CMA) – which recently gave Uber the green light to buy dispatch systems provider Autocab.

Severin said: “Insurers are speaking to the regulators to understand if this amounts to a non-authorised body influencing a purchasing decision. They have specifically asked the CMA whether this initiative will create an unfair and closed market among insurers.”

He added: “As a result, Uber may be on the end of a backlash from the insurance industry if they continue with their plans, and it might not all be smooth sailing.” Uber defended the move. An Uber spokeswoman said: “We are proud of Instadoc, an industry-first digital verification process which allows insurance firms to send digital insurance documents directly to Uber, saving drivers time while helping to prevent fraud and ensure that every trip is insured.”

She claimed the list of eight companies covered “the vast majority” of Uber drivers – a claim disputed by the major insurers not on the list. However, she did say the list would be reviewed.

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