American Property Casualty Insurance Association
  • Staff Contact: Jeffrey Brewer     
    • Printer-Friendly Printer-Friendly PDF Export PDF Export



Jeffrey Brewer, PCI

Kevin Martin, IIA








May 27, 2014

Insurance Trade Groups Urge Chicago to Delay Action on Ride Share Regs


CHICAGO – With a more balanced statewide standard for regulating ride sharing activities poised to reach enactment in Springfield, the Property Casualty Insurers Association of America (PCI) and Illinois Insurance Association (IIA) are urging the City of Chicago to reject or delay action on Substitute Ordinance 2014-1367.

The Chicago City Council is scheduled to consider an amended version of SO2014-1367 Wednesday, May 28. However the state Legislature has already passed HB 4075 and is within days of deciding the fate of companion legislation HB 5331, as adjournment nears.

“While SO2014-1367 is an improvement from the original version as it requires the ride sharing companies to be primary insurer for their drivers, it continues to be a flawed proposal that falls short regarding insurance issues,” said Jeffrey Junkas, regional manager for the Chicago-based PCI. The IIA and PCI believe the best way to support innovation in transportation is to have clear insurance rules that don’t leave insureds or accident victims in the lurch because of disputes, and laws that do not burden all drivers with unfair costs. “We believe SO2014-1367 would run counter to that standard.”

Both groups view the legislation before the state Legislature as a positive step forward, setting a reasonable standard to ensure that the public is protected if there is an accident. These bills provide a bright line rule and consistency of coverage for ride sharing activities, protect the predicable interpretation of insurance contracts and exclusions in personal lines policies for activities such as commercial ride sharing.

“We support the provisions in the state house bills as they will avoid all drivers subsidizing the riskier driving activities of a small number of drivers and the companies that facilitate these programs,” said Kevin Martin, executive director of the IIA. “Additionally, they outline numerous important consumer protections via disclosures to drivers, insurers and government agencies. The proposal before the City Council has problematic insurance mandates at different levels and lacks comprehensive disclosures. We urge that the proposed ordnance be rejected or delayed until the statewide law is enacted.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

The Illinois Insurance Association (IIA) is an insurance trade association, which effectively and professionally represents its member companies before the Illinois legislative, executive branch, and media. In addition, the IIA seeks to promote a greater consumer understanding of insurance products. The IIA is the property/casualty insurance industry’s leader in advocating public policy positions before the media, interest groups, and political forces in the state of Illinois.