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Insurance Brand Strategy And The Gig Economy

The U.S. Chamber of Commerce defines gig workers as “independent contractors or freelancers who typically do short-term work for multiple clients.” For example, Uber and Lyft drivers are gig workers, as are DoorDash or GrubHub food delivery drivers.

The gig economy has been on the rise, and the COVID-19 pandemic only accelerated this trend. According to a study from Edelman Intelligence, the majority of the US workforce will be freelancers by 2027. In 2021, we saw the country’s highest quit rate with “The Great Resignation”. While some of these resigning employees went to other full-time jobs, many transitioned to gig work. This segment of workers, who don’t get health, life, and other types of insurance through their employer, represents an opportunity for the industry. In this article, we’ll look at gig workers’ insurance needs, insurance market trends, and how insurers can reach this target audience.

man smiling holding a tablet

Gig Economy Insurance Needs and Considerations

There is a lack of employer-based coverage for gig workers. Health insurance, life insurance, disability insurance, Workers’ Comp, professional liability insurance, and accident protections are all left to the responsibility of the worker. However, traditional underwriting laws may not effectively address the unique risks associated with gig work.

One approach insurers could take is to offer Episodic Coverage. Also known as usage-based pricing or “on-demand insurance,” this is an essential offering for gig workers. This type of insurance allows independent contractors to only pay for insurance when they actively need it. For example, when they are at work dog walking, driving for a ridesharing app, and so on. Episodic coverage is also convenient because it can be activated or deactivated via a smartphone app. This appeals to price-sensitive gig workers who do not need coverage all the time.

When it comes to gig workers and insurance, pricing is the main consideration. These workers are often operating on narrow profit margins and they have to cover all their own expenses, including insurance, out of pocket. According to Edison Research, 80% of gig employees whose gig work is their primary source of income say that an unexpected expense of $1,000 would be difficult to pay.

Finally, because they do not have the guidance of an HR department, simplicity and ease of use is key to many gig workers looking for an insurance provider.

How To Reach Gig Workers With Your Marketing Messages

Once you identify the insurance products you can offer to gig workers, you need to know how to reach this demographic with marketing.

Gig Worker Demographics

  • Age: 18-24-year-olds make up the largest population of gig workers, at 38%. So, you should tailor your messaging to this younger demographic. Don’t be afraid of technology– be active on social media channels and create fresh, relatable content.
  • Language: Bi-lingual ad copy in English and Spanish can help you reach Hispanic audiences, nearly a third of whom work in the gig economy.
  • Price-sensitive: Gig workers statistically have more anxiety around their individual financial situation than non-gig workers. Ensure your messaging is empathetic towards financial hardship and offer price-sensitive solutions.

Digital Marketing Tips For Gig Workers

  • Create blog and social media content specifically about gig workers and the gig economy. Offer information, advice, and solutions in your content. For example, you could help gig workers understand their health insurance options such as Medicare vs. Medicaid, the ACA exchange, catastrophic health plans, and short-term health insurance plans. You could also cover issues like Worker Misclassification.
  • Add a product page or pages on your website specifically for gig workers. For example, “Life Insurance For Gig Workers.” Even if the same policies are a good fit for multiple demographics, sorting them into specific pages will help with SEO.
  • Use detailed audience targeting in PPC ads.
  • Host webinars specifically addressing the concerns of gig workers. You don’t have to come up with a new idea every time–blog topics can be turned into webinars with a live Q&A at the end.

Learn more about our Insurance Solutions!

PrintMail has been a trusted partner and innovator for more than two decades. We can help you grow your organization with a variety of solutions such as printed and electronic statements, mail marketing services, compliance communications, and digital marketing for insurance companies. Contact us to learn more!

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