Role of the Gig Economy in the Insurance Sector

Authors

  • Dr. Ben Kajwang PhD Chief Executive Officer, College of Insurance

DOI:

https://doi.org/10.47941/jbsm.762

Keywords:

GIG, Economy, Insurance Sector

Abstract

Purpose: The recent rise in the gig economy has led to change in supply and demand of labour globally. People have opted to work as freelancers or contractors on projects of multiple companies. On the other hand, have also seen it beneficial to outsource for gig workers whenever they need them to work for a specific period since it has helped them cut on the labour costs of hiring permanent employees. The goal of this study is to identify and discuss the roles of the gig economy in the insurance sector. The purpose of this work is to enhance the reader's understanding on what is a gig economy and its role in the insurance sector.

Methodology: A desktop literature review was used for this purpose. Relevant seminal references and journal articles for the study were identified using Google Scholar. The inclusion criteria entailed papers that were not over five years old.

Findings: The study concluded that gig workers are excluded from pool of benefits that permanent employees enjoy, such as insurance coverage, paid sick leaves, paid vacations and pension plans. Hence the gig economy has provided a business opportunity to the insurance sector to provide insurance benefits to gig workers especially where the social security and protections plans are mandatory.

Unique contribution to theory, practice and policy: The study recommended that it is important for gig economy to partner with the insurance sector so as to provide mandatory social security and protection plans to all gig workers. In addition, the insurance sector should outsource for gig workers whenever they are needed since they have access to digital platforms that help them provide quality services to their customers.

Downloads

Download data is not yet available.

References

Abraham, K. G., Haltiwanger, J., Sandusky, K., & Spletzer, J. (2019, May). The rise of the gig economy: fact or fiction?. In AEA Papers and Proceedings (Vol. 109, pp. 357-61).

Bieber, F., & Moggia, J. (2020). Risk shifts in the gig economy: the normative case for an insurance scheme against the effects of precarious work. Journal of Political Philosophy, Epub-ahead.

Brinkley, I. (2016). In search of the gig economy. The Work Foundation.

Dazzi, D. (2019). Gig economy in Europe. Italian Labour Law e-Journal, 12(2), 67-122.

Donovan, S. A., Bradley, D. H., & Shimabukuru, J. O. (2016). What does the gig economy mean for workers?.

Eling, M., & Lehmann, M. (2018). The impact of digitalization on the insurance value chain and the insurability of risks. The Geneva papers on risk and insurance-issues and practice, 43(3), 359-396.

Haripershad, S., & Johnston, K. (2017, July). Impact of the Gig Economy (Uber and AirBnB) in South Africa. In ECSM 2017 4th European Conference on Social Media, Academic Conferences and Publishing Limited, Vilnius, Lithuania (p. 146).

Hou, F., Lu, Y., & Schimmele, C. (2019). Measuring the gig economy in Canada using administrative data. Statistics Canada.

Hunt, A., Samman, E., Tapfuma, S., Mwaura, G., Omenya, R., Kim, K., Stevano, S. & Roumer, A. (2019). Women in the gig economy: Paid work, care and flexibility in Kenya and South Africa. Overseas Development Institute.

Huws, U., Spencer, N., Syrdal, D. S., & Holts, K. (2017). Work in the European gig economy: Research results from the UK, Sweden, Germany, Austria, the Netherlands, Switzerland and Italy.

Iazzolino, G. (2021). "˜Going Karura': colliding subjectivities and labour struggle in Nairobi's gig economy. Environment and Planning A: Economy and Space, 0308518X211031916.

Lepanjuuri, K., Wishart, R., & Cornick, P. (2018). The characteristics of those in the gig economy. UK Department for Business, Energy and Industrial Strategy. Accessed, 10.

Malos, S., Lester, G. V., & Virick, M. (2018). Uber drivers and employment status in the gig economy: Should corporate social responsibility tip the scales?. Employee Responsibilities and Rights Journal, 30(4), 239-251.

Naomi, I. (2019). Digital economy and development: an empirical study on motorcycle driver jobs in Uganda (No. 753). Institute of Developing Economies, Japan External Trade Organization (JETRO).

Wasilwa, S., & Maangi, G. M. The State and Future of The Gig Economy in Africa.

Simona S. C. (2019). Global Insurance Technology & Global Accounting Change Implementation Leader, KPMG in Italy.

Jauntin (2021). Gig Economy. https://jauntin.com/insuring-the-gig-economy/

Fischer, S. (2021). Insurance and the Gig Economy. https://www.baloise.com/en/home/news-stories/news/blog/2021/insurance-and-the-gig-economy.html

Kaine S, Josserand E. The organisation and experience of work in the gig economy. Journal of Industrial Relations. 2019;61(4):479-501. doi:10.1177/0022185619865480

Suggu,A.(2021). Driving Gig Economy Insurance with AI. https://www.tcs.com/blogs/ai-gig-insurance-worker-benefits

Downloads

Published

2022-01-27

How to Cite

Kajwang, B. (2022). Role of the Gig Economy in the Insurance Sector. Journal of Business and Strategic Management, 7(1), 19 – 28. https://doi.org/10.47941/jbsm.762

Issue

Section

Articles