Insurance in the Gig Economy

Insurance in the Gig Economy

Summary

Technology has paved the way for a new business/employment model based on matching sellers and buyers of goods and services for discrete and often short-term tasks - known as the gig economy. This model has been facilitated by a proliferation of digital platforms, enabling individuals to earn income from assets they own as well as from skills they can offer.

There are two main types of gig economy digital platform: asset-based and labor-based. Over time the gig economy has evolved from its origins as a consumer-to-consumer (C2C) market (with consumers demanding goods and services from each other) into a business-to-consumer (B2C) market (with the likes of Uber tapping into underused skills and assets). Examples can also be found within the gig economy of business-to-business (B2B) transactions, highlighting the diverse areas covered by the sector and indicating the need for insurance products that are equally diverse.

The insurance market for gig economy workers remains relatively untapped. It is not dominated by any single provider, and is instead populated with numerous start-ups offering flexible insurance whereby the policy holder only pays for the hours cover is required. Therefore there is considerable growth potential should an established insurer enter the market and leverage both their reputation and economies of scale. However, regulation will undoubtedly influence the gig economy - and with it the insurance products workers require. This means providers must be agile in order to respond to new developments.

"Insurance in the Gig Economy", report provides an in-depth analysis of the potential opportunities the gig economy can provide, both from a UK and an international perspective. The topics discussed include the potential size of the UK gig economy insurance market, the fundamental aspects of developing products tailored for the gig economy, and what events might impact the gig economy in the future and what will this mean for insurers.

Scope

• Currently the gig economy is a relatively underserved market with considerable potential to grow, particularly given the increase in the number of individuals working in this sector.


• The market is predominantly serviced by insurtechs that have sought to establish themselves as key providers, yet with the market in its infancy larger insurers could enter as the market grows.


• The gig economy is not only a new potential insurance market for insurers to develop products for. It could also be used to benefit insurers in other ways, such as streamlining the claims process.

Reasons to buy

• Discover the potential of a market that is currently underserved, but if employment trends continue could be set to grow.


• Identify what elements a gig economy insurance product needs to be successful, as well as what products are currently being offered to gig workers in the UK and overseas.