Income protection insurers must adapt for self-employed individuals with uncertain incomes

For those who are either self-employed, are gig or zero-hour workers, they may find that there are times when income isn’t always a certainty. 

Leading data and analytics company GlobalData have put forward the idea that income protection insurers need to take this into consideration, with some workers often finding themselves in a situation where they have uncertain, fluctuating incomes, as well as going through periods of unemployment.

Danielle Cripps, Financial Analyst at GlobalData, commented, “Individuals with uncertain incomes are more vulnerable and concerned about their finances, creating demand for tailored products.”

GlobalData’s 2017 UK Insurance Consumer Survey found that the self-employed were 7.1 percentage points more concerned about saving money for a comfortable retirement (30.7%) than those in full-time employment (23.6%). Paying monthly bills was also a greater financial concern for the self-employed.

Because of this, GlobalData believes that income protection insurers must adapt and create tailored policies for these individuals.

Danielle added, “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.”

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