Report-high inflation within the UK will lead to extra individuals taking on second jobs to afford spiraling month-to-month payments, which is able to see a rise in demand for particular person business insurance coverage. The fee-of-living disaster might grant an surprising enhance to gig economic system insurance coverage.
The gig economic system permits individuals a substantial amount of flexibility because it entails being paid for a specific ability, often counted by the hour or completion of a specific process. This enables individuals to take up just a few hours every week of providers, resembling delivering items, canine strolling, or handyman jobs, to prime up earnings.
GlobalData’s 2022 UK Insurance coverage Client Survey discovered that over 1 / 4 of shoppers both took up a second job in 2022 or have been contemplating doing so. This was made up of 14.5% desiring to do it sooner or later and 14.0% having already achieved it. An additional 22.6% thought-about it however determined in opposition to doing so.
Practically 90% (89.7%) of all respondents mentioned that the cost-of-living disaster influenced their determination (62.8% mentioned it was a direct results of it, whereas 28.5% mentioned it was an element however not the only purpose). The three hottest second jobs have been canine strolling (35.8%), supply providers (35.5%), and cleansing on demand (33.3%).
This shall be a lift for the nascent gig economic system insurance coverage sector. There’s typically a gray space between who the insurance coverage duty falls on – the worker or employer. However insurers have began to supply low cost and versatile insurance policies, typically by way of apps, on to gig-economy employees to cowl them for key liabilities. An increasing number of employees taking on non permanent jobs will enhance the scale of the potential market.
Our knowledge reveals that one factor holding again development right here is individuals not contemplating the necessity for insurance coverage or assuming it had been sorted by their employer. Due to this fact, elevating consciousness about how vital primary insurance policies could be and making insurance policies as low cost and straightforward to buy as attainable ought to assist enhance penetration as the scale of the potential market continues to develop.