Uber’s insurance reserves totaled $2.94 billion at the end of 2018, up from $2.0 billion at the end of 2017, according to regulatory filings made public Thursday. The company’s insurance reserves totaled $712 million at the end of 2016. Lyft, which went public last month, set aside $863.7 million in its captive insurance subsidiary at the end of 2018, compared with $360.9 million the year before. These disclosures illustrate the challenge for companies engaging in new business models and facing unfamiliar risks: Insurance companies don’t have enough information to price coverage in a way that would make these new businesses economically viable. These businesses know their operational risks well, and have access to information not available to a third-party insurer.

Source: Wall Street Journal April 12, 2019 00:33 UTC