Gig Economy in Insurance - Thematic Research

Summary

Mobile devices are facilitating the rapid growth of the gig economy, whereby users share their services and skills in ways that are more economically viable and sustainable. The key players in this sector to date are startups that have spotted the opportunity and established original products. The industry is growing and is set to be huge, but mainstream insurers have been slow to react. There are complications around what defines an employee, and therefore whether parties paying employees for hours or tasks are responsible for basic employee benefits packages or whether this is something the individuals should arrange themselves. The main way in which incumbent insurers have been active in the gig economy is through partnering with specialist startups or directly with gig economy employers.

The gig economy has seen astronomical growth in recent years, as digital advancements and slow growth in wages and employment have seen people - especially those of younger generations - turn to work by the hour or task. But insurers have struggled to get to grips with this new market. Incumbents have generally been slow to act, which has left huge gaps for startups. This report provides in-depth analysis of how the emerging gig economy will shape the insurance industry.

Scope

• AXA’s 2017 partnership with Uber immediately made every Uber driver in Europe an AXA customer.
• The expansion of the partnership in 2018 saw AXA offer benefits to all of Uber’s independent partner drivers and couriers in Europe.
• The increased use of smartphones and apps over the past decade is the key reason why the gig economy has risen to such prominence.
• High unemployment rates and economic uncertainty in multiple countries are factors contributing towards a change in attitude and the rise in the number of individuals looking for additional or alternative sources of income.

Reasons to Buy

• Benchmark 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 use of automated home devices in insurance over the next few years.