To capture new gig worker market segments, carriers must adapt their coverage options and distribution strategies to appeal to the needs of gig workers.
For example, Goose, a Canadian insurtech, is now working with AIG Insurance to help offer affordable income protection insurance and hospital cash policies for self-employed and gig workers.
Enabled by open APIs and Goose’s self-service distribution app, small business owners, gig workers, and freelancers can purchase protection independently on their mobile devices in minutes.
Many gig workers want products that protect them for shorter periods, such as day-to-day, month-to-month, hour-to-hour, or contract-to-contract. Therefore, creating more flexibility in coverage options and how gig workers use insurance products could hugely impact how this generation views the benefits of insurance policies.
Employee benefits insurers must make buying insurance coverage as seamless and effortless as it is for them to schedule another gig. As a result, more employee benefits carriers offer portable benefits for gig workers that provide swift and straightforward application and enrollment processes.
Bunker, an online instant business insurance platform for independent contractors and businesses, allows workers to purchase insurance for just the term of their work contracts, enabling more flexible and meaningful coverage for gig workers. The company offers products such as occupational accident insurance, which covers on-the-job accidents that might not be covered by traditional policies.
Cover Genius, another insurtech, has embedded policies within several gig worker platforms and marketplaces, integrating insurance in the signup process and providing the ability to turn coverage on and off.
Additionally, small businesses and companies that rely on contractors because they cannot afford full-time employees can use embedded, usage-based insurance to secure a more reliable talent pool and increase contractor retention.