Coverhero, an Australia-based insurance technology (Insurtech) provider, revealed on December 17 that the launch of its first product, Hustle Cover, an “instant” and customizable income protection insurance product developed specifically for gig economy professionals.
There are reportedly over 1.5 million Australian residents that are now working as independent contractors, ABS’s 2018 data shows. Hustle Cover has been created in order to help cater to the change in working preferences of Millennial and Gen Z professionals. It offers income protection for the gig economy workforce in case people are unable to work due to an accident or illness.
The global gig economy is valued at more than $4 trillion and is growing steadily.
Naby Mariyam, founder and CEO of parent firm Coverhero, says she personally experienced the negative effects of losing income as a business owner two years back, which is when she realized that other people could also face similar problems.
Insurance claims can be difficult to access and coverage policies can sometimes be too complicated to understand when working with traditional insurance providers. After experiencing challenges with trying to obtain coverage, Mariyam was motivated to develop several different insurance products that are well-suited for younger workers, as they help protect the lifestyle chosen by freelancers.
Hustle Cover aims to cater to the challenges of being a gig economy professional or self- employed worker. Coverhero is designed to empower people by ensuring their mental, physical and financial wellbeing.
“While there‘s a long list of pros working as a gig worker or small business owner, such as flexibility and work-life balance, there’s always risks with the unpredictability or losing income due to injury or sickness. With more gig economy workers in the market and the expected growth of the segment, a lot of young people who don’t have income protection insurance or are underinsured are exposed to risk and financial insecurity in this very competitive job market.”
Hustle Cover offers two personal income protection products, including the “gigster for the casual side hustler” and “Hustle Pro for a serious full-time hustler.”
“Gigster is perfect for side hustlers who get paid by the hour, such as delivery workers, rideshare drivers, street artists or musicians, whereas Hustle Pro is perfect for small business owners, consultants, freelance designers and creatives, fitness trainers, life coaches, and the list goes on.”
Coverhero’s machine learning enabled tech solution, Cloud Cover, has been designed to address the requirements of its policy-holders and allows for improved distribution, underwriting and claims processing, in order to provide a better insurance experience, which is free from the common problems found in traditional systems.
“Insurtech 2.0 is about creating new products that solve real issues in society, like the underinsured gig economy, rather than digitising existing products. At Coverhero, it’s our promise to create new products to cater to these unique lifestyles using financial services and education powered by cutting edge technology. Our purpose is to enable our generation and future generations to live a balanced life … That’s why we’ve created Hustle Cover, as it [aims to] provide Australian gig workers with protection in the moments that matter.”
Hustle Cover will be launching a mobile app for policy management. The app will let users access an overview of their coverage plan, file a claim and customize their cover according to their preferences.