Uber and Lyft Form Captives in Hawaii As Part of Their Risk Management Strategy

The leading firms of the Ridesharing industry, Uber and Lyft, are utilizing Hawaiian-based captive insurance companies as part of their risk management strategy.

Hawaiian public records show that Pacific Valley Insurance, a captive registered in September 2013 and managed by Marsh, has Lyft co-founder and CEO Logan Green and co-founder, president and vice chairman John Zimmer listed as its directors.

While the records also show Alexa Insurance, registered March 2014 and managed by Aon, has Uber’s ex-head of finance Gautam Gupta and former Uber lawyer Yoo Salle listed as directors.

Lyft’s initial public offering (IPO) filing with the US Securities and Exchange Commission (SEC) revealed that the company utilises its “wholly owned captive insurance subsidiary” to “insure or reinsure costs including auto liability, uninsured and underinsured motorist, auto physical damage and general business liabilities up to certain limits”.