Gig Economy in Insurance - Thematic Intelligence

Gig Economy in Insurance - Thematic Intelligence

Summary

The gig economy is a predominantly IT-enabled workplace for jobs, where jobseekers can opt to do certain jobs and be paid upon the completion of the task. The rise in smartphones and job platforms over the last decade has seen the trend explode and become a key technology theme. The basis of the gig economy - people wanting to outsource tasks to temporary workers - has always been around, via word of mouth or job postings on town hall noticeboards. It is the technology that has turned the gig economy into a key theme across a range of industries and consequently created a large and sudden insurance gap.

The sharp rise of the gig economy in recent years has created an insurance gap. More and more people entering the gig economy - often without experience of freelancing and the risks associated with not being a full-time employee - has created a high level of underinsurance. This gap is growing according to GlobalData survey data, so this represents a significant opportunity. The challenge insurers face is reaching these freelancers (who range across various sectors of the gig economy) and then convincing them they need insurance. This will be even more difficult in a cost-of-living crisis, when people taking up extra jobs to top up their income may be reluctant to give some of it away to insurers.

ScopeGlobalData’s 2022 Financial Services Consumer Survey found that among the 40 geographies covered, an average of around 10% of consumers are part-time workers.14.5% of UK adults intended to take up a second job in the gig economy in the immediate future according to GlobalData’s 2022 UK Insurance Consumer SurveyAllianz, Zurich, and AXA are gig economy leaders among the traditional players, while Zego is the standout among startups.Reasons to BuyBenchmark yourself against the rest of the market.Ensure you remain competitive as new innovations and insurance models begin to enter the market.Be prepared for how regulation will impact the gig economy in insurance theme over the next few years.