The GiG economy and Sharing Economy is a growing and thriving part of the economy and deserves some policy changes in governments and companies to take advantage of its affects. A study by JPMorgan tracks the changes since 2013 and has found several critical point.
When a person is working in the GiG economy the earnings represent a significant amount of income for that person, however over a year it tends not to be a significant proportion of income. This is because most people do not participate generally all year.
Typical insurance policies are annual – this represents the old economy. Here at Microinsurance we are working hard to bring new insurance processes to align with the sharing and gig economy. Sharing economy insurance is hard find. Microinsurance are experts at this however, and understand how participants are generating their income and the risks associated with that income.
Platform participants are not quitting their day job to earn income off of platforms just yet. The Online Platform Economy is a source of significant income for people in the months when they engage with it. However, it remains a secondary source of income overall.
Very few people engage on a sustained, year-round basis. Even when they are generating income from platforms, the vast majority of participants earn income from other sources as well.
This means that they need insurance only when they are engaged – this is per night or a week or a month. Microinsurance is building sharing economy insurance programs to reflect this.
Whether or not the Online Platform Economy is capable of transforming work markets, consumers do not appear to be using it in a way that will usher in that transformation just yet.
In the leasing sector, the number of participants is very low relative to the number of people who own homes, but monthly earnings are almost double the other three sectors, and the top 10 percent of earners generate over $4,500 in revenue per month. This is very useful supplementary income and Microinsurance allows participants to only buy cover when they need it.
Microinsurance has programs designed specifically for the sharing and gig economy. The programs are for the platform companies and work with all sides of the platform to reduce risk at sensible costs.
Microinsurance is insurance with an API. We are in the forefront of change; developing policies by the season, job, by the hour, by the day and by the Km, thus fitting our model to that of the sharing economy platforms and the way small and micro businesses see risk. We are unbundling policies so that the cover offered fits with peoples needs or the actual job or process being undertaken.
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