It is probably unsurprising that the pandemic has rocked the world. Every aspect of life has changed. The way we work is no exception. The gig economy is becoming ever more prevalent to those who are looking for a new source of income or to earn some extra cash.
So what is it like for the businesses supporting the gig economy. The Future of Work Institute interviewed the CEO of Tapoly, Janthana Kaenprakhamroy. Tapoly is an on-demand insurance provider, supporting the gig economy with their insurance needs, to get their perspective on how the pandemic is impacting the gig economy.
How has the pandemic affected business?
As a progressive business, Tapoly is fortunate enough to have been able to ride out this pandemic with minimal impact. As the entire operation is digital, it has been possible to keep operations running smoothly.
During the pandemic, Tapoly has seen fewer policy cancellations but an increase in the number of claims. Operationally, it has been manageable and has not yet impacted sales. Even though the number of people looking for new insurance policies has decreased significantly: this is especially visible in the retail, trades and events sectors. On the flip side, insurance sales in the delivery sector has exceeded expectations during the crisis, with record sales in April 2020.
How do you think the pandemic will affect both the micro and macro elements of the labour market?
For the insurance sector, our predictions suggest that the pandemic won’t really make an impact. According to the Association of British Insurers (ABI), it is predicted that member companies can expect members to make over £1.2 billion worth of claim payouts. This is a major indicator of the financial impact of COVID-19.
In the short-term, small businesses and freelancers in specific sectors will be hit harder than more established companies: governments have a greater level of funding in place to help established companies stay afloat during the pandemic.
The pandemic will also give rise to more opportunities within the gig economy as well as giving the opportunity for small businesses to reinvent themselves. Whether this is by adopting a more flexible workforce or reducing staffing to move to a more remote-first method. Companies are likely to pivot their business to cater for the new digital lifestyle that the pandemic has moulded us into.
What do you think the Future of Work and labour market will look like?
It is no doubt that the COVID-19 pandemic has accelerated the remote and digital work culture faster than expected. Consumers are also becoming increasingly more technologically savvy. In order for companies to remain thriving post-pandemic, flexible working will remain common.
There will be more gig workers turning to marketplaces and platforms to connect with more customers due to the increased need for extra cash or just to have multiple different revenue streams.
The gig economy will be vital for the recovery of the economy. As many businesses begin to warm to the flexibility that the gig economy can offer, and how it can help with recovery efforts, this may push the demand onto external service providers. The duty of gig businesses during these times is to ensure that we continue to bring adequate products and support to protect gig workers.
According to data from the OECD, nearly 50% (15 million) of the UK workforce are either self-employed, part-time or are temporary workers. This number has been rapidly increasing over the past few years and there is no sign of this trend slowing down – there is no doubt that the pandemic will continue to increase this exponentially.
This is a trend we can also expect for growth in the gig economy. Professions that don’t require physical presence or can be performed remotely, business will most likely return to normal. However, for professions (like healthcare), you are likely to just see an increased usage of technology but with professional tradesmen, you are more likely to find that there is an increased usage of PPE.
Are there any prominent issues with the Future of Work that need to be addressed?
The key challenge for the employment market right now is the uncertainty and worry of financial loss or inability to find work. As we come out the other end of this crisis, it will be clear that stakeholders need to come together to ensure that workers and businesses are adequately protected in the long run.
For the time being, stakeholders should be committed to providing gig workers with access to the flexibility they need while developing new innovations as each road bump arises.
What measures has Tapoly taken to help gig workers during the pandemic?
Tapoly are proud to play their part in easing the burden for clients by reducing the cost of all of their products by 10%, from now until the end of June 2020, for both new and existing customers. For more information please visit https://blog.tapoly.com/small-business-support-during-coronavirus/.