Uber’s captive insurance subsidiary, Aleka, insures nearly 95% of the ride-hailing company’s risk, according to an analysis by Consumer Watchdog released in May 2026. The finding underscores how Uber has built a self-funded insurance structure that allows the company to retain control over billions in premium revenue rather than paying traditional third-party insurers.
Aleka Insurance Inc., a wholly-owned Uber subsidiary run by Uber executives and based in Hawaii, has accumulated $12.46 billion in insurance reserves as of 2025, a 27% increase from the $9.8 billion held in 2024 and nearly double the $6.7 billion in 2023, according to Consumer Watchdog’s examination of Uber’s public financial filings. By internalizing nearly 95% of its insurance risk, Uber maintains control over premium flows generated from rides rather than relying on traditional third-party insurers.
A captive insurance company is a form of self-insurance where a business creates its own licensed subsidiary to cover its own risks. According to the Self-Insurance Institute of America, this structure enables self-insured businesses to reduce costs by lessening their dependence on third-party insurance providers. The key advantage for Uber is financial: money reserved for potential claims is not taxed as profits, allowing the company to stockpile capital that might otherwise be subject to corporate taxation.
Consumer Watchdog’s report, titled “Uber’s License to Kill Insurance Scam,” alleged that Uber is using the insurance reserves to fund a broader corporate agenda. The watchdog group noted that Uber has committed $10 billion to purchasing robotaxis, according to reporting from the Financial Times, and suggested the company’s goal is to limit its own liability through tort reform efforts nationwide so that it can redirect insurance reserves toward robotaxi development instead of paying accident victims.
Aon, a global insurance broker, manages Aleka’s operations. The structure allows Uber to charge itself for insurance while keeping the float—the premium money held before claims are paid—under company control. This model differs from traditional insurance, where a third-party insurer retains that capital and invests it for its own benefit.
Consumer Watchdog also found that Uber misrepresented its insurance structure to the California legislature in 2025. According to the watchdog’s analysis, Uber’s top public policy executive claimed that $0.45 of every dollar spent on Uber rides went to insurance, a statement the group disputed based on its review of regulatory filings.
Sources
- Consumer Watchdog — analysis of Uber’s public financial filings finding Aleka insures 95% of Uber’s risk; $12.46 billion in reserves in 2025, up from $9.8 billion in 2024 and $6.7 billion in 2023; Aleka run by Uber executives; Hawaii-based subsidiary
- Insurance Business Magazine — corroboration of reserve figures: $12.46 billion in 2025, $9.8 billion in 2024, $6.7 billion in 2023
- PR Newswire — Consumer Watchdog report details; Aleka managed by Aon; 95% self-funding figure; robotaxi commitment
- Self-Insurance Institute of America — explanation of how captive insurance structures reduce costs and dependence on third-party providers
- CalMatters — recent reporting on Aleka and Uber’s insurance structure; misrepresentation to legislature allegation
