Sharing economy and mobility sector growth due to the COVID-19 pandemic is driving the need for new forms of cover and requiring insurers to respond, global broker Marsh says.

The pandemic has caused a surge in “last-mile delivery”, the final stage of transit to customers, while shared e-bikes and scooters have become more common as miles of roads have been converted to bike and pedestrian lanes in cities globally.

“It is remarkable how the pandemic has accelerated adoption of new mobility habits around the world,” Marsh US Sharing Economy and Mobility Centre of Excellence Head James Rose says.

“If insurance can keep pace and evolve with this accelerating mobility shift, it can empower growth and possibility in this sector for many years to come.”

A Marsh report, Mobility in a post-pandemic world: from evolution to revolution, says insurance has an essential role in ensuring trust as new mobility solutions are adopted.

The start of the smartphone boom in the wake of the global financial crisis fuelled the first wave of mobility start-ups including Uber and Deliveroo, and current conditions have led to further expansion.

“It is remarkable to reflect on how much, and how quickly, our mobility habits have evolved and how the pandemic has accelerated adoption of these new offerings,” the report says.

“A decade ago, ridesharing sounded to an underwriter like hitchhiking. Autonomous vehicles and air taxis were the visions of futuristic movies and television shows. Pre-pandemic, rideshare was Uber’s most profitable business and now, it is the food delivery platform, Uber Eats.”

The report says that in the area of car sharing and driving sensor technology Original Equipment Manufacturers (OEM) are becoming involved in insurance.

“With some OEMs investing in their own early-stage in-house insurance companies, which can bundle insurance at the point of sale, traditional insurers writing personal auto liability may find themselves on a burning platform, with an acute need to evolve,” it says.

Opportunities for insurance exist with advanced sector technology and in supporting gig-workers “at scale”, while increased use of digital payments for modes of transport from e-scooters to public transportation to car share rides, also will also lead to innovative insurance solutions, the report says.