Freedom with a safety net: how AXA empowers the gig economy with tailored protection
- The rise of the gig economy has highlighted gaps in traditional employment benefits, including health and retirement insurance
- AXA believes self-employment shouldn’t be risky, offering accessible and flexible solutions, aims to close these gaps for gig workers
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The rise of the gig economy, driven by technological advances and a growing desire for personal freedom and mobility, has led to a noticeable shift in the way people work, especially among Gen-Z. This generation values flexibility and the ability to balance work with personal interests and lifestyle choices.
Today, terms such as gig work, flexi-work, on-call work and freelance work describe non-standard forms of employment that deviate from traditional norms. When these forms are widespread, they collectively form the "gig economy".
According to a World Bank report, the self-employed and those working in non-standard forms of employment are largely outside the protection of social safety nets, especially social insurance schemes that protect workers against income shocks such as unemployment, accidents at work or disability. Therefore, it is important to formulate insurance policies that extend access and coverage of traditional social insurance schemes to the most vulnerable segments of the workforce.
The most critical coverage gap is in health and accident insurance. A minor illness or accident can result in substantial medical bills, jeopardising their financial stability and forcing them to work even when unwell. This lack of health protection not only exposes them to serious financial risks, but also undermines their overall well-being.
"Life insurance and family protection are essential to provide financial security and peace of mind in times of unforeseen circumstances, but often overlooked in insurance coverage for the self-employed." Angela explains, “Retirement savings are another essential area where gig workers often find themselves unsupported, without the safety net of employer-sponsored plans, such as the ORSO and MPF schemes, many struggle to secure their long-term financial future.”
Recognising the expansion of the gig economy and the associated protection gap, AXA offers comprehensive and suitable solutions, believing "being self-employed shouldn't be a risk".
"As a leading global insurer, we are committed to identifying and anticipating new risks of today,” says Wong. "Our goal is not just to offer insurance products; we aim to deliver comprehensive, customisable solutions that cater to the unique needs of the gig economy, to make life safer, fairer and more inclusive for as many people as possible. Our commitment is to ensure that future is not a risk but an opportunity, empowering individuals with robust support in health, income protection, and workplace sustainability."
For example, AXA offers policies with variable contributions for retirement and adjustable medical coverage, allowing policyholders to tailor their coverage to their financial situation and future needs.
AXA also recognises the importance of mental and physical well-being for the self-employed, who often face high levels of stress without the support structures available in traditional employment.
To address this, the insurer offers mental health and preventative care resources to ensure that the self-employed have access to services that help them maintain their health and productivity.
As the gig economy continues to expand and evolve, it's evident that traditional employment benefits aren't enough for today's diverse workforce.
