While the pandemic had a considerable impact on personal mobility, almost stopping international travel and business trips, it benefited the transport of goods, creating a phenomenal boost for the on-demand economy. Amazon hired 2,800 employees a day to reach 1.2 million employees in 2020.
Many other e-commerce players have surfed on this wave, including;
- Online marketplaces such as eBay, C-Discount, and Zalando,
- Food delivery providers such as Deliveroo, Just Eat Takeaway, Stuart, UberEats,
- Courier companies such as Correos Group, DHL, DPD, FedEx and UPS,
- Public and private-hire taxi services: Lyft, MyTaxi, Uber and WeTaxi.
But, insuring the mobility of European gig workers presents many challenges for underwriters: short-term contracts, unpredictable workloads, drivers’ inability to afford high premiums and high claims frequency and severity. Most commercial line insurers are ill-prepared to this.
Therefore, a specific type of usage-based insurance (UBI) is emerging to better cover these risks: On-Demand Insurance (ODI) policies, which adapt to the daily patterns of gig workers. Both traditional insurers such as AXA and new insurtechs such as Inshur, Qover and Zego, are starting to address this market.
PTOLEMUS’ Gig Economy Motor Insurance European Study is the first comprehensive investigation of the European market for the insurance of scooters, cars and vans for the purpose of last-mile delivery, in both employed and self-employed markets. It includes over 220 pages of insights, data, analyses and forecasts through to 2030. A link to the report can be found here: https://bit.ly/2YZKrNJ
Dr Andrew Jackson, PTOLEMUS’ Research Director stated: “Since the coronavirus crisis began, the market potential for on-demand insurance, covering the specific needs of last-mile delivery, has exploded.”
Source: Business Wire
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