UBER is now banned in many countries, Italy included for instance.
but things may NOT be as you wrote, especially for insurance. I know already they are very professional, and allow to work only cars that have a private hire license FOR people transport and regular insurance. They are not running any illegal activity actually.

to be hone it's pretty honest one, but the problem mainstream doesn't disclose it for us... they just pop up some "news" to make audience... a shame