Irish Taxi and Food Delivery Drivers Face Insurance Crisis as Wakam Suspends New Business
Dublin: Irish taxi and food delivery drivers are facing uncertainty after French insurance company Wakam temporarily suspended the acceptance of new business following regulatory action by French authorities.
The Paris-based insurer has been ordered to stop taking on new business amid concerns over its capital reserves.
UK-based insurer Seago stopped accepting new business in the Irish market last year, after which NFP Ireland selected Wakam as the insurance provider for its RideSure scheme.
While a number of insurers, including AXA, FBD and RedClick, operate in the taxi insurance market, obtaining suitable cover has traditionally been more difficult for food delivery drivers. Wakam helped fill this gap by providing insurance cover to drivers in the sector. However, the company’s exact share of the Irish taxi and food delivery insurance markets is unclear.
Wacam provides insurance coverage through various distribution partners across Europe and operates in more than 30 markets. The company generated gross written premiums of €834 million last year and has periodically intervened in different segments of the general insurance market in Ireland.
In a statement published on its website, Wakam chairwoman Catherine Charrier Leflaive said she regretted the inconvenience caused to the company’s partners.
She said the insurer had the necessary resources and a strong operating model to continue managing all existing contracts.
The company reported last week that French authorities had imposed a temporary ban on Wakam taking on new contracts and renewing existing policies as the regulator began proceedings that could potentially result in the company’s operating licence being revoked.
Wakam said it was preparing a response to the regulatory action and was continuing to take steps to strengthen its capital base.
The insurer stressed that the temporary restrictions would not affect existing contracts. It said it would continue to settle claims and meet its obligations to policyholders and partners.
NFP’s explanation
A spokesperson for NFP Ireland said the company understood the uncertainty the situation would create for drivers whose policies are due for renewal in the coming weeks.
“With new policies and renewals being disrupted due to regulatory measures on insurance provider Wakam, we are seeking clarification from the company on when normal service will resume. Customers will be informed in due course,” the spokesperson said.
The NFP website states that policies already due for renewal can still be renewed, but the company is currently unable to provide new quotations.
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