Freelance platforms such as Upwork, TopTal and Rated People enable individuals to search for gig work, with everything from accountancy to video production available. This makes them an ideal home for both advertising and education around the importance of protection.
A gig product
More work could also be required to make products suit the more fluid income arrangements of gig workers. Although insurers are already developing products in this area, Mike Aldridge, innovation director at L&C, believes they could go further. “There needs to be more innovation,” he says.
“We are seeing more pay-as-you-go products in the general insurance market. The income protection insurers should develop something similar for people working in the gig economy.”
Last April insurer Cuvva launched a motor insurance proposition allowing drivers to pay for cover by the hour, day, week or month. Motorists simply sign up through its app, enter details of the vehicle they want to drive and the cover term they need, with hourly rates starting from £7.92.
Mr Aldridge says this model could be replicated in the gig economy. By linking to freelance platforms, gig workers could take out income protection to match the duration of the contract they select. This could also be supplemented by other work-related insurances that might be necessary, such as professional indemnity or public liability.
“Someone could have a long-term product for their living expenses but increase cover whenever necessary,” he explains.
“Insurers could also make more use of technology and all the available data to enable cover to flex to these gig workers’ protection needs.”
Whether or not protection insurers take this giant leap with their product development, the protection needs of this segment must not be overlooked at a time when the gig workforce continues to grow.
Developing products, and marketing campaigns, that can reach out to them will ensure they have an adequate safety net in place if they are unable to work due to long-term illness or injury.
BIG NUMBERS
1.1m
Number of people working in the gig economy in Britain (RSA)
18%
Percentage of the working age population who would consider some form of gig work (RSA)
10%
Or less of the population has individual or group income protection (Swiss Re)
£14,737
Average annual benefit on income protection policies taken out in 2016(Swiss Re)
£449
Average annual premium on income protection policies taken out in 2016(Swiss Re)
