The Travelers Companies, Inc. has announced that it has become the exclusive provider of auto insurance claim services for U.S rideshare company Lyft.
Launched in 2012, Lyft is an on-demand transportation company that uses a mobile app to provide more than one million rides per day across 300 U.S cities.
The firm was ranked as the second largest ride hailing company in the U.S in 2018 (behind Uber) and is valued at $15.1 billion.
Analysts from Keefe Bruyette & Woods (KBW) said that the new arrangement with Lyft is expected to boost Traveler’s fee income and provide it with more ridesharing driving and loss data.
The partnership will likely provide the insurer with significant data volumes, including both actual ridesharing premium and loss data and broader driving-related information relevant to Traveler’s personal and commercial auto business.
“Lyft is a dynamic organization that’s at the forefront of the future of transportation,” said Nick Seminara, Executive Vice President of Claim Services at Travelers.
“Travelers’ investments in talent, technology and infrastructure enable us to deliver high-quality and customized claim services,” he continued. “We’re pleased to have the opportunity to deploy that in service of Lyft’s vision and its network of drivers, who complete over 10 million rides a week.”
Kate Sampson, Vice President of Risk Solutions at Lyft, also commented: “Beyond Travelers’ outstanding reputation for providing world-class claim services, we found their culture of innovation and commitment to their communities a natural fit for Lyft.”
“We’re confident in Travelers’ experience to efficiently and effectively manage auto claims so we can continue to empower our drivers to meet their goals and help deliver an exceptional experience for our riders,” she explained.
As Lyft’s exclusive claim management services provider, KBW also expects Travelers to be well positioned to capture new market opportunities and support long-term earnings growth.
Analysts noted that the income stemming from rising National Accounts’ fee income should be lower-risk and hence higher-multiple than Traveler’s traditional underwriting income.
