The gig economy continues to expand in the UK as online shopping replaces the High Street. Even fast food outlets with drive-thru lanes are finding that many prefer to order online and have it delivered. More people are also starting a side-hustle enterprise, or turning a hobby into a part-time occupation, as this is an excellent way to stay on benefits long term whilst working 16 hours a week.
But what does all this self-employment mean for insurers? The short answer is that there will be more accident and sickness cover required, plus PAYG vehicle use. Here’s the latest from Collective Benefits, who already on the case when it comes to helping the self-employed stay afloat financially.
Collective Benefits has announced the closing of £3.3 million in funding from Stride.VC alongside existing investors Delin Ventures, Insurtech Gateway and several high profile angels with experience in building some of the largest gig platforms including Uber, Deliveroo, and Urban.
Collective Benefits is aimed at tackling the growing protection gap created by the gig economy, in which self-employed workers often do without basic benefits such as family leave and sick pay, let alone the essentials needed like mental health support and critical injury pay.
The startup is building a tech platform that gives gig workers access to a full range of affordable, portable protections and benefits they need and deserve so they can work and live without worry.
Collective Benefits is already working with a number of on-demand service platforms who are giving their workforces access to these benefits. The startup will use the funding to further their growth and offering for gig platforms. A consumer service aimed at freelancers will follow later this year.
Anthony Beilin, CEO and Co-Founder of Collective Benefits says, “There are six million self-employed workers in the UK, which includes both higher-paid freelancers and gig economy platform workers. Yet, neither group typically has a safety net – no holiday pay, no family leave, no mental health support, not even paid sick days. We are building Collective Benefits so that the gig economy workers are covered by the same protections typically reserved for full-time employees.”
Collective Benefits has built the first benefits platform specifically for the self-employed that will serve the entire gig economy ecosystem.
● For gig platforms:
Collective Benefits makes it easy and effective to boost loyalty, reduce churn and talent acquisition costs by giving platforms an easy way to give their workforce the protections and benefits they want and need, including sick pay, family leave, and mental health support.
● For self-employed freelancers:
Collective Benefits makes it affordable and easy for freelancers to choose the protections they need to create the safety net they never had. Freelancers join as members to access benefits secured at the lowest possible price for the collective.
Fred Destin, partner at Stride.VC says, “We’re seeing services platforms gain unstoppable momentum in every segment of our lives, from rides to food delivery to freelancing. We need a new playbook. Collective Benefits addresses one of the core challenges in this brave new world of work, using technology to design and deliver a new type of safety net to all the participants in this fast-growing part of our economy.”
Robert Lumley, Director and Co-founder of Insurtech Gateway, says, “The insurance industry faces a massive challenge in keeping up with the extraordinary growth in self-employment. Collective Benefits has created entirely new insurance products for the self-employed not addressed by traditional insurers and accessible through a flexible tech platform that allows them to get the cover they need.”