It's not a bad argument in some ways, you should be required to have proper insurance to operate as an Uber driver.

There's a difference between "licensed" (where the government only licenses a certain group to create a government granted monopoly) and "insured".

Licensing can also be used to ensure competence and familiarity with safety regulations (there's a reason why we require people to be licensed to operate a vehicle in general and a reason why even in the age of GPS, London cabbies are required to pass a test of their knowledge of the city's streets.)