Irish taxi and food delivery drivers face headache as French insurer suspended

Competition to provide insurance cover here for taxi and delivery drivers has suffered a blow after French authorities ordered Paris-based insurer Wakam to suspend writing new business amid concerns over its capital reserves. Broker NFP Ireland, a unit of Aon, had lined up Wakam as the underwriter of its scheme for taxi and food delivery drivers – known as RideSure – in February, after another player, UK-based insurer Zego, last year stopped taking on new business in the Irish market.Wakam said in a statement posted on its website last week that the French Prudential Supervision and Resolution Authority had imposed a temporary ban on the company underwriting new contracts and renewing existing ones – as the regulator opened adversarial proceedings that could lead to the withdrawal of its authorisations. Wakam said it was preparing a response and was continuing to implement a remediation plan, “which notably provides for strengthening its capital base”. READ MOREThe temporary ban does not affect the management of contracts in force. Wakam continues to process and settle claims and to fulfil its commitments to policyholders and partners, the insurer said. A spokesperson for NFP Ireland said: “We understand the uncertainty this creates for drivers whose renewal is coming up in the coming weeks. With new policies and renewals affected by the regulatory suspension involving Wakam, the underwriter, we are seeking clarity from Wakam on when normal service can resume. NFP’s priority is to keep its customers informed.”A statement on NFP’s website added that policies that have already been offered renewal can be renewed, but the company cannot issue new quotations.[ Budget 2027: All you need to knowOpens in new window ]While there are quite a few alternative insurance providers to the taxi sector – including Axa, FBD and RedClick – coverage is more difficult to find for food delivery drivers, according to market sources. It is not clear what share of the taxi and food delivery markets Wakam has. Ireland’s economic outlook ahead of Budget 2027 and agentic AI going roguePromoting competition and market access is a key aim of the Government’s latest version of the Action Plan for Insurance Reform. Wakam provides the insurance capacity to various distribution partners across Europe, including intermediaries known as managing general agents and brokers. It does business in more than 30 markets and generated €834 million of gross written premiums last year. It has dipped in and out of offering capacity to various segments of the Irish general insurance market over the years. “Our priority is to protect the interests of our partners, policyholders and employees, and to provide a rapid, concrete and documented response to our supervisor’s expectations. We regret this decision for Wakam and its partners,” said Wakam’s chairwoman Catherine Charrier-Leflaive in the statement on the company’s website. “Wakam has a robust operating model and the resources required to continue managing all its contracts currently in force.”