India’s gig economy is setting the agenda in insurance technology

The pack features technology enabled new age insurers like the leading Probus Insurance Broker Pvt. Ltd., Coverfox Insurance Broking Pvt. Ltd., and Plum Benefits Pvt. Ltd., offering mental health, accident and credit insurance to a new set of workers. Companies have informed insurance companies that gig workers need to be told that their insurance cover will also depend on productivity and meeting their hourly targets. The demand is so high that insurance firms often have to toggle different covers as gig workers often switch from one platform/company to rival on the same day.

“There is a growing demand for insurance for gig workers from the corporate sectors and goes beyond basic accident and health insurance. Some include insurance for family/partners, mental health and wellbeing,” said Aditya Bagarka, head of innovation and strategy at Plum, an employee health insurance platform that provides health benefits to corporations.

Gig workers include independent contractors, freelancers from different sectors, who can be employed by multiple firms/platforms for certain hours of the worker’s choice. A fairly recent concept in India, the gig economy got a boost during the two years after the pandemic when many people decided to work for a fixed amount of time.

“Today, companies are figuring out whether gig workers want benefits and insurance or pay more for hours worked. Mahaveer Chopra, Founder, Chief Executive Officer (CEO), Beshak.org said, “There are also discussions among delivery and mobility service providers on whether gig workers should be covered while using their platform or even later. ” Independent consumer awareness platform for individual insurance buyers.

According to industry body Assocham’s May 2021 report, India’s gig sector is expected to grow to $455 billion by 2024 at a compound annual growth rate (CAGR) of 17% and have an expansion of at least 2x the pre-pandemic estimates. has the ability to. Another estimate states that India is expected to have 350 million gig jobs by 2025.

Insurance platforms like Plum have seen customers also attach a daily weekly insurance cover against the productivity of the gig worker. “Customers often use increased insurance cover as an incentive to motivate gig workers to perform better. They have various metrics in place to chalk out the impact of the gig employee on the impact on revenue on the company and offer insurance accordingly,” Bagarka said.

Unlike a permanent or contract worker, a gig worker cannot easily get term life insurance cover. However, there is an accident insurance where gig workers can get a lump sum payment of up to 100% of the sum insured.

“The focus should be on vehicle insurance, home insurance and equipment and liability insurance. Insurance companies should find a way to personalize insurance products by combining emerging technologies including AI and chatbots to focus on the gig economy,” said Rakesh Goel, Director, Probus Insurance.

Firms are offering credit insurance for this growing group of workforce. “Credit insurance helps clear any outstanding debt in case of untimely death of the customer,” said John Mayne, executive director of Coverfox.