Insurtech to save gig economy workers?

Another insurtech out to help the emerging band of
gig economy workers has raised funds.

Collective Benefits has raised £3.3m ($4.26m) in a seed round to build a
safety net for the self employed, many of whom are uninsured and vulnerable.

According to a blog post by Anthony Beilin, chief executive and co-founder of Collective Benefits: “What this investment does do, however, is wholeheartedly endorse our pioneering mission, and gives us the chance to go out there and fix one of society’s biggest problems. It’s not easy reimagining a 300-year-old industry, but we now have the tools we need to get on with the job at hand.

“The realisation that millions of people were – and still are – leaving themselves financially vulnerable, doing their jobs and going about their lives without adequate financial protection, spurred us on. At Collective Benefits, we believe every individual has a right to work without worry.”

According to Scottish Widows, 93% of six million self-employed workers in the UK do not have health or critical illness cover. There is certainly a huge gap in the market.

Some real money is starting to change hands in
insurance as 2019 comes to a close.

While reporting on insurtechs gathering millions in
funding is the norm, some traditional firms are splashing
the cash on stakes in others.

The Carlyle Group and T&D have reached an agreement to purchase a 76.6% stake in Fortitude Re from AIG for $1.8bn.

The acquisition will be carried out by a newly established Carlyle-managed fund.

Post-deal, Carlyle will hold a 71.5% stake in Fortitude Re (including the 19.9% stake it took at launch in November last year), while T&D and AIG will own a 25% and 3.5% stake, respectively.

Carlyle said that the acquisition will enable it to support Fortitude Re’s growth plans, and offer the reinsurer access to its various investment strategies.

Additionally, T&D will help Fortitude Re to develop its strategically differentiated capabilities. With the support of Carlyle, T&D and AIG, Fortitude Re will work to acquire and manage legacy insurance portfolios.

Pursuant to the terms of the agreement, AIG will pay Fortitude Re up to a maximum payment of $500m for certain adverse developments in property casualty related reserves which may take place up to the end of 2023.

Insurtech to save
gig economy workers?

Another insurtech out
​​​​​​​to help the emerging band of
gig economy workers has raised funds.

Collective Benefits has raised £3.3m ($4.26m) in a seed round to build a
safety net for the self employed, many of whom are uninsured and vulnerable.

According to a blog post by Anthony Beilin, chief executive and co-founder of Collective Benefits: “What this investment does do, however, is wholeheartedly endorse our pioneering mission, and gives us the chance to go out there and fix one of society’s biggest problems. It’s not easy reimagining a 300-year-old industry, but we now have the tools we need to get on with the job at hand.

“The realisation that millions of people were – and still are – leaving themselves financially vulnerable, doing their jobs and going about their lives without adequate financial protection, spurred us on. At Collective Benefits, we believe every individual has a right to work without worry.”

According to Scottish Widows, 93% of six million self-employed workers in the UK do not have health or critical illness cover. There is certainly a huge gap in the market.

One firm offering similar is Dinghy. Having joined forces with Allianz, the insurtech offers app-based insurance to freelancers. Coverage is calculated based on seconds and users are required to pay for what they use.

Zego offers flexible, on-demand motor insurance for the gig economy, with Uber and Deliveroo among its clientele.

Recently, it tripled its workforce to a headcount of 200. This is over the space of two months. In addition, it surpassed 230 million hours of flexible insurance policies sold. A real coup was the fact that it was the first insurtech to be awarded its own insurance licence, allowing it to create its own policies.

The number of firms catering to freelancers, the self-employed and gig economy workers is only going to increase. For better or worse, this form of employment is booming.

There are some signs of faltering, the biggest in the UK being Uber’s licence troubles in London. The rideshare app was not granted a new licence to operate in the capital, but it has appealed.

Insurance has a real opportunity here. Never the most liked industry; it can be a real saviour to employees of gig economy firms, despite the companies not seeing them as employees.

As Uber and the like lose reputation in the eyes of people, insurtechs can gain it. The gap is there for them to fill.

Patrick Brusnahan, Editor
Patrick.brusnahan@verdict.co.uk