Role of the Gig Economy in the 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.