By Avinash Gaikwad, Chief Strategy Officer, Bimaplan
Gig & platform workers have emerged as a sizable workforce in recent years. A recent study by Niti Aayog estimates – the Indian gig workforce is projected to expand to 23.5 million workers by 2029-2030, a massive 200% jump from the current workforce of 7.7 million gig workers.
With low or no security, these gig workers live on the edge to earn their daily livelihood. Gig workers often face numerous challenges in order to survive, including accidents, injuries, difficult customers, and decreasing daily wages. Sudden expenditures or any medical emergency can disrupt their financial stability considering they are highly vulnerable than full-time workers. Hence it is imperative to market social security programs such as pensions and insurance as accessible and affordable to this segment.
It is crucial to make gig workers aware of insurance and its benefits. Many gig workers experience irregular pay, payment delays, and other financial setbacks due to the nature of their flexible and unstable jobs. As a result, they often don’t have access to basic financial products such as insurance. However, some insurtech companies have recognized this gap and are offering tailored solutions at low premiums to encourage employees and companies to buy group insurance plans for gig workers. This is an important step in providing protection and peace of mind for gig workers and their employers.
With the gig-workers being at risk, the first-hand effect comes on the companies employing them as well as the perception of the brand is highly sensitive. Also the daily logistics and other major operational processes can get affected. Plans such as personal accident, vehicle protection, credit life and many more can be instrumental to provide the gig workforce protection against unforeseeable circumstances and mitigate financial risks. Also, it boosts workers’ retention and adds to the credibility of the brand employing gig workers creating a win-win for all.
Technology like APIs, AI, ML, and IoT is being used by insurtech companies to make affordable insurance available to gig workers. In order to make suitable insurance available, new distribution channels are unlocked after assessing the workers’ current behavior. Insurance plans are being tailored to match the needs of gig workers and offer them efficient protection with a choice of flexible or monthly premiums.
The streamlining of the claim process is vital and is being adopted by insurtechs in addition to the end-to-end digital process for fast policy issuance. For instance, WhatsApp claims platform in addition to call and email services to make it more convenient for policyholders. By simply sending the policy number on WhatsApp and the supporting documents as attachments, he or she can file for the claim. The team promptly ascertains whether they require further documents before moving forward with the claim submission. After submitting the required documents, the team takes control of the process and processes the claim. The policyholder is then informed by WhatsApp of the status, and he can even use the portal to check the real-time status himself.
As gig workers are hired on a contractual basis, managing insurance premiums and claim requests can become a significant operational hassle. The modular tech solution offers a user-friendly dashboard that streamlines the digitising process and makes tracking and management for gig platforms easier. With group insurance plans, insurtech also reduces the operational burden on companies for quick onboarding and off-boarding employees which is very common while dealing with gig workers. A growing spate of employers from this segment is integrating embedded insurance products into the workers’ journey. The new age insurance approach provides long-term financial protection and security in the life of gig workers.
The evolution of technology has made the insurance market more serviceable and is serving solutions for companies & gig workers both. Furthermore, it promotes financial inclusion while providing coverage to those in need and helps boost this rapidly growing workforce.