Car-sharing firms must understand risks, operate more efficiently

Creative approaches to corporate insurance and risk management are expected to play a critical role for car-sharing firms striving for profitability and position to increase membership while the industry grows to a projected $6 billion by 2020.

“To compete successfully, today’s collaborative sharing firms and entrepreneurs must understand their risks and continually devise and execute strategies to move faster and operate more efficiently,” notes information released last week by The CarSharing Association, based in Ottawa, and TechAssure Association, Inc., a non-profit organization with 22 worldwide insurance broker members in seven countries

With the car-sharing industry expected to exceed $6 billion by 2020, those innovative approaches are needed to operate efficiently and maximize profitability, the information notes. The top markets in 2020 will include North America, Europe, Asia, Australia and South America.

The CarSharing Association partnered with TechAssure Association to conduct the 2013 Annual Insurance and Risk Survey for members.

“Public awareness of the car-sharing system has increased dramatically as new forms of shared vehicle mobility (peer-to-peer, one-way, transportation network companies) have come to market,” says Alan Woodland, executive director of the CarSharing Association.

The association “has a mandate to advance consumer protection agenda, ensuring market participants have adequate levels of insurance and make proper disclosure of insurance coverages to the consumer,” Woodland adds.