"selling Insurance In The Gig Economy: Profitable Opportunities For Agents"
"selling Insurance In The Gig Economy: Profitable Opportunities For Agents" - Gig workers are a growing part of the workforce. During Disability Insurance Awareness Month, it's important to understand the opportunities of the gig economy.
Your customer's health, occupation, and earned income are the three pillars of the traditional disability insurance underwriting process.
"selling Insurance In The Gig Economy: Profitable Opportunities For Agents"
Health is clear - does your client have a medical history that may affect the ability to obtain disability insurance? Things like musculoskeletal issues or mental/nervous conditions they are currently being treated for? What about current medications or chronic problems that are problematic?
Real Estate, Agents, And The Gig Economy
Occupation, again, is not difficult to determine. The characteristics of the insurance company often determine the chosen carrier. Some carriers like to write policies for individuals who shower before going to work, as opposed to customers who shower when they get home from work.
Earned income is the big problem that disability insurance companies face with many gig workers. By definition, a gig worker is paid based on the completion of a project or task. They are not paid an hourly wage or salary. These individuals are considered quasi-independent contractors and are not subject to certain employment laws such as minimum wage or sick leave. Gig employees are required to provide their own health and unemployment insurance and cover the employer's share of Social Security taxes.
Disability insurance is designed to insure an individual's "earned income". For the gig worker, income is determined by net income, after business expenses, but before taxes. For a handyman with a three to four year history, this wouldn't be much of a problem. Stability should be demonstrated along with solid validation that the gig worker is working a minimum of 30 hours per week.
For a field insurer, the role of the agent is paramount. You need to collect important data to help the insurer. Here's some information that's useful to gather when working with the gig worker.
What Is The Gig Economy And The Future Of Work
» Information about the work environment: current occupation and daily tasks; hours worked along with where the client performs most of their duties; previous work experience.
Any prior education or training related to the performance. Do they have a contract from the individuals or companies to whom they will offer their services? Providing this contract will be helpful to the insurer.
» Medical information: Is the client currently taking any medication? Have they consulted a doctor in the past five years? Height and weight information would also be helpful.
Once you've gathered all this information, you'll need to share it with an insurer before submitting a formal application. Commonly referred to as an informal evaluation, this process helps with any customer conversations you have to help manage any future expectations if you were to make a formal application.
This Is How Insurance Is Changing For Gig Workers And Freelancers
As always, it's important to build a strong relationship with your underwriting team. Gig workers usually know other gig workers in their community. Having the knowledge and confidence to provide these individuals with the right income replacement policies opens up a remarkable opportunity for referral companies. In the commercial p-c insurance market, most technology aimed at brokers improves back-office administration and user experience by automating bits of manual processes.
However, that fact should not overshadow the significant investment being made in new forms of distribution that are currently taking shape in two ways: technology-assisted intermediaries and carrier-direct models. The Council's Market Intelligence & Insights team follows this ever-changing landscape and offers their take on some of the leading insurtechs to watch in both the back office/user experience and distribution spaces. This infographic is part one of a three-part series. Look forward to the next two parts: Carrier Direct Models & Distribution Platforms and Technology Solution Providers.
The following companies are 25 insurtechs to know. Take a look at the image below (or above) as you read through the list.
AP Intego: Technology-enabled, partner-driven, full-line small business insurance agency. AP Intego is licensed in 50 states and has more than 50,000 customers, including the MGA, Oyster Insurance.
What Is The Gig Economy?
Boost Insurance: MGA, backed by Markel, Nephila, RenassianceRe and StateNational, helps Boost insurtechs white label platforms accelerate their go-to-market strategy by offering paper and capacity, compliance, back-end technology solutions and claims .
Bunker: Technology-enabled retail brokerage that distributes coverage for the gig economy directly to consumers. Bunker also distributes comp coverage for small businesses through a broker.
Cake: Technology-enabled MGA, backed by Pinnacol, currently distributes employee benefits directly to businesses. Cover can be purchased and bonded online.
Coalition: Cyber MGA backed by Swiss Re and Argo for SMBs that may be online bound. Cover sold through retail broker partners.
Fintech For Gig Workers Is The Next Big Untapped Market
Corvus: Small business cyber and cargo MGA backed by Argo Insurance and Hudson Insurance Group. The cover is sold through retail broker partners.
CoverWallet: Digital broker selling small business insurance directly online. Collaborates with retail brokers with the white label "CoverWallet for Agents" platform.
Embroider: Digital broker that sells business insurance to businesses of all sizes. Small business policies can be purchased and bonded online, while larger risks are placed through an advisor.
EvolveMGA: Cyber MGA backed by CFC Underwriting and various Lloyd's syndicates. Coverage can be purchased through an Evolve broker or a retail broker partner.
Gig Economy Workers Are Struggling Financially
Inshur: Technology-enabled MGA selling commercial auto insurance, targeting the rideshare industry. Coverage can be tied online.
Next Insurance: Technology-enabled MGA backed by Markel and Munich Re. It became a licensed carrier in Delaware in 2018 and sells small business insurance directly online. Coverage can be bonded directly.
Paladin: Sells small business cyber insurance, which can be purchased and bonded directly online or through brokerage partners.
Pie Insurance: Technology-enabled MGA backed by Sirius America Insurance. Sells employee insurance directly to small businesses online.
Maybe We're Not All Going To Be Gig Economy Workers After All
QBIS: Tech-enabled MGA platform owned by Patra that offers customized insurance products to brokers. Products are sold through online brokerage partners or through a broker.
Simply Business: Licensed intermediary selling micro business insurance online through multiple carriers. Purchased by Travelers in 2017, cover online.
Slice: Tech-enabled MGA powered by AXA XL and Munich Re. Distributes homeshare, rideshare, and small business cyber coverage insurance policies that can be purchased and bonded online.
By embracing our true identity in the workplace, we show others the importance of living an authentic life at work and beyond. The gig economy comprises a large portion of the US population. According to job platform MBO Partners, by 2022 the gig economy will include nearly 65 million people in the United States, from food delivery drivers to web designers - and a wide variety of workers in between.
Workers In 'gig' Economy Worry About Future As Income Vanishes
And the popularity of working in the gig economy shows no signs of slowing down. Forecasts indicate that by 2028, the number of freelancers performing gig work will total 90 million and account for more than half of the U.S. workforce, Statista reports.
But what is the gig economy? It is a system in which people, instead of working as traditional, full-time employees for a company or organization, earn money through individual, on-demand assignments.
This scheme offers benefits to employees and the companies that employ them. The popularity of gig employment platforms that connect employees to the companies and individuals seeking their services reflects the value the gig economy can bring to both parties.
Coined in news stories in 2009, the term "gig economy" has come to describe the work of individuals whose jobs include a variety of individual projects, consultant roles, and part-time positions. Gig workers do not receive an annual salary from a single employer, but are instead paid on a per-project, hourly, or part-time basis. Because they are not permanent, full-time employees, they do not receive benefits such as health insurance or pension contributions.
How To Find Health Insurance While Working In The Gig Economy
The number of people turning to this type of work continues to grow in the 21st century. However, this method of making money dates back hundreds of years.
The practice of relying on many individual opportunities to earn money as a way to make a living was common until the late 18th century and into the 19th century, when the Industrial Revolution moved many workers into full-time jobs in manufacturing led. Despite the prevalence of full-time work, one-time or short-term work continued, and in the early 1900s jazz musicians began to refer to live performances in various venues as "performances."
After the turmoil of the Great Depression in the 1930s, gigging disappeared as people sought the stability of full-time jobs. But the rise of the internet changed this trend. Combined with other factors such as changing population demographics and financial concerns, digital services have helped create what the gig economy is today.
: With its origins in early 20th century jazz clubs, the gig economy now comprises a significant portion of the American workforce. Key dates in the history of the gig economy, according to the Pew Research Center and Small Business Trends, include: Early 1900s: Jazz musicians make money off gigs. 1930: Farmers lose land and become migrant workers. 1940: Employment agencies open. 1990: Contractors and temps make up 10% of the workforce. Late 1990s: The digital age spawns remote jobs. 2021: Gig employment will comprise a third of workers.
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In 1995, the Craigslist platform began posting classified ads, including those looking for paid help with various projects. Other
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