Insurance in the gig economy is a growing market and insurers must capitalise on the opportunity, says GlobalData
The UK insurance market has seen the emergence of the gig economy as an opportunity not only for employment purposes but also as a new and growing market. With 2.8 million individuals working within the gig economy, those who are quick to scale in the market will undoubtedly reap the benefits, according to GlobalData.
The company’s latest report highlights the potential benefits that this emerging insurance market can bring to the industry. With the market currently being served by a number of small insurTech firms, there is a considerable opportunity for any large insurer wishing to expand into this space, particularly as there is currently a large number of individuals operating within the gig economy who have no insurance, which provides cover against accidents whilst working, loss of income due to illness or public liability.
The rapid improvements in technology have enabled the gig economy to grow from a consumer-to-consumer market into an entirely new marketplace, allowing for new ways of working to evolve. Individuals are no longer working for a single company, instead contracting out their services and being paid per task.
Daniel Pearce, Financial Analyst at GlobalData, explains: “This new working practice can benefit the insurance industry in a number of ways. Outsourcing tasks to those working in the gig economy will help reduce cost and potentially increase efficiency, but the most exciting prospect is the development of a new market which demands new insurance products.