The Gig Economy and Insurance: Latest News UpdatesThe Gig Economy and Insurance: Latest News Updates

The rise of the gig economy provides both obstacles and growth potential for insurers. Those who have temporary or freelance work do not often participate in traditional employer-provided benefits like health care insurance, worker’s compensation, and unemployment. In this article, we will take a look at the ongoing news on what is happening in insurance and the gig economy as well as touch upon new solutions that are coming out to tackle the protection gap surrounding too many gig workers.

Challenges for Gig Workers:

Restricted Availability of Conventional Insurance: Gig workers generally aren’t entitled to the benefit packages that companies offer. — The result of this mishap is that individual insurance plans can be so costly that many gig workers find they cannot afford them because their income moves up and down.
Unstable income: Gig work is episodic, which means that workers never know when and where their next gig will come from.
Danelczyk: Gig workers are generally not eligible to receive these kinds of benefits, which can leave them financially if they sustain work-related injuries or illness.

Latest News and Developments:

For instance, there’s a trend of InsurTech startups that are exploring new insurance solutions (carveout product design), especially for gig workers. These products provide on-demand, flexible coverage options, in which employees only have to pay for insurance when they are active workers. Read More: [[research: recent articles on gig worker insurance for insurtech]]

Government Innovations: A few administrations are trying out regulative styles that will solve the social insurance gap’s vicious cycle for gig workers. One possibility would be to establish portable benefits programs or possibly labor standards for workers hired on gig platforms, each of which could work together but be independent of the formalization path. Find this kind of news item: (See News: Google government policy stories on gig worker insurance.)
Sponsors rated Platform-Sponsored or PlatformInsurance: More gig economy platforms are aligned with insurance companies to give their workers discounted (or even subsidized) options for coverage. This will make it easier for gig workers to gain insurance and contracts in force, which should help platforms maintain their existing network of drivers while also attracting new talent. (As evidence, check out recent offerings by gig platforms to provide insurance for their workers.)
B. Collaborative Initiatives: Industry stakeholders (insurance providers, gig platforms, worker’s advocacy) are coming together to create tailored insurance solutions for the gig economy. These partnerships aim to combine worker rights with platform adaptability. Please refer to these new articles for partnerships dealing with gig worker insurance: SOURCES NEEDED)


LAUNCH OF NEXT-GEN TECHNOLOGY: A leading InsurTech company introduced a new on-demand accident and health insurance product for ride-sharing drivers in early 2018.
(Source to be needed: A government bureaucracy has recently drafted a bill that would house gig laborers.)
A food delivery platform worked with an insurance giant to provide workers’ compensation for its fleet of drivers at a reduced rate.

Looking Forward:

The gig economy has ballooned the insurance industry. We also expect insurance products to continue evolving due to regulatory changes and a growing ecosystem of suppliers cooperating. We could see the following develop in the future:
Tailored Insurance: Coverages will become more flexible and customizable, providing individual gig workers the ability to fully customize their policies according to unique work specifics.
Focus on Health and Safety: Insurance offerings may include programs like prevention or wellness campaigns that are meant to keep gig workers healthy, reducing the probability of risks.
The Practice Will Be Standardized: This would arguably lead to industry-wide guidelines for gig worker insurance that could improve transparency and standardization in coverage choices.


(Previously, the insurance industry struggled with knowing how to approach gig work.) At the same time, this represents an opportunity to innovate and provide innovative insurance products tailored for a workforce that is only going to grow. Collaboration among stakeholders can close the protection gap for gig workers and contribute to a more secure future in this segment of the labor market.