Smart Insurance for Gig Workers with Dynamic Premiums

Abstract

The Gig economy1 in India has experienced rapid growth over the past few years and continues to expand at a tremendous rate. In 2020-21, 7.7 million people were working in the gig economy by 2029-30, this number is expected to expand to 23.5 million. (NITI Aayog et al., 2022). The new employment model of the gig economy grants freedom and flexibility to millions of people. However, Gig workers experience limited access to social security programs due to their irregular pay, which renders traditional insurance plans both expensive and ineffective. This project proposes for development of a data-driven micro-insurance product2, i.e., an affordable and adaptive insurance model that aligns with the financial realities of gig workers. The solution utilizes income data, along with health behavior metrics, to develop a cost-effective protection system that better aligns with the financial standing of this workforce. The feasibility and effectiveness of such a system will be validated through primary research, analysis of existing data, and creation of prototype models within this project.