Insuring Gig Workers, Part 1

Christina Goldschmidt discusses risks for gig economy workers. (Runtime: 3 min, 26 sec)

Size: 4.9 MB,   Time: 3 min, 26 sec Text transcript  Download

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Christina Goldschmidt of Cake & Arrow tells us how brokers can help gig economy workers understand their risks.

Related Article: Brokers, avoid possible liability issues with clients involved in sharing economy: RIMS Canada Conference

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Text Transcript

Christina Goldschmidt, vice-president of customer experience and design at Cake & Arrow.

A big question is how knowledgeable are gig workers about their risks? At Cake & Arrow, we’ve conducted research with over 125 people in the gig economy. Now, that includes both people in the sharing economy, like people who work for Uber and TaskRabbit, as well as knowledge workers.

It’s really astounding how many are not aware of their risks. For example, I spoke with an Uber and Lyft driver in Texas, who actually used to be a claims adjuster for a national P&C carrier. And she wasn’t fully aware of the gaps between the insurance coverage that’s provided by her ridesharing apps and her personal coverage.

So after talking to her, she was actually reassured and excited to learn that there could be potential insurance coverage out there for her, because she knew from tons and tons of time of actually processing claims for individuals that ridesharing was an immediate denial of that claim.

The intrinsic issue is that people in the gig economy are relying on the internet as their sole source of information. When you talk to people like Upwork, they told me that yes, they provide information about their coverages, but they kind of have it in with all their larger pieces of information because they don’t want to cross that line of providing legal advice.

And then when you talk to Uber or Lyft, they actually want to try to make everything seamless and frictionless for people to join their platform. So all of these gig platforms are really trying to not suppress adoption by the workforce and the talent, but at the same time, they’re not sharing that information with the actual workers.

So what brokers really need to know is how do you help your customers overcome this idea that all of the information that they need to know about the gig economy is provided on the internet, that there actually are risks out there and that they can help them to really understand what they are and be protected.

What are gig workers actually looking for in an insurance product? Well, it’s just like what all digital natives are looking for in terms of how to think about a digital universe.

It’s starts with this idea that you need to match where they basically live and work in those certain behaviours. So, to start, it must basically feel like they’re working with a company that provides trust, transparency and control. That’s what is driving our economy right now, and why all things digital are successful.

When you buy something from Amazon, you know exactly what you’re getting, when it’s going to show up, and if you don’t like it, you can return it seamlessly and easily. It needs to be the same way for modern business, and specifically for insurance.

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