A recent report has highlighted the need for income insurers to create tailored policies for the UK's self-employed, gig and zero-hour contract workers to make allowance for the unique conditions that come with their status. This comes as 15 per cent of the UK population are said to be self-employed, with this figure expected to rise dramatically over the coming years.
According to the survey from GlobalData, contractors were 7.1 per cent more concerned about saving money for retirement than those in permanent employment. Paying monthly bills was also a greater concern.
“Individuals with uncertain incomes are more vulnerable and concerned about their finances, creating demand for tailored products,” said Danielle Cripps. Financial Analyst at Global Data.
Overall, there are around 4.86 million self-employed in the UK, with approximately 1.3 million of this number working in the gig economy and 0.9 million who work under a zero-hour contract for their main job.
“Income protection insurers must adapt their offerings for these individuals. The protection industry is intent on boosting financial resilience in the UK, and designing products tailored for the most economically vulnerable is a vital step towards narrowing the protection gap.
“More employers are looking towards an on-demand workforce, and the UK’s entrepreneurial environment is also causing a rise in self-employment. Growing income protection sales for these individuals represents a significant opportunity for protection insurers.”