Many gig workers in Canada lack insurance – poll

Many gig workers in Canada lack insurance – poll | Insurance Business Canada

Life & Health

Many gig workers in Canada lack insurance – poll

CEO lifts the lid on the numbers

Life & Health

By
Terry Gangcuangco

Nearly 22% of Canadians, or about 7.3 million people, engage in various forms of gig work, according to the “Behind the Gig: Securian Canada Insights” report, which found that many gig workers lack insurance.

The study, conducted in collaboration with the Angus Reid Institute, reveals that a majority of Canadian gig workers turn to this type of employment out of financial necessity. In fact, 57% of gig workers rely on it to supplement their main source of income, with 31% of respondents citing the higher cost of living as their reason.

Notably, 73% of gig workers are also employed in full-time or part-time jobs outside of their gig activities. Approximately 30% of gig workers are involved in specialized services like photography and consulting, 25% in online retail, and 21% in freelance digital services such as tutoring or graphic design.

The report also found significant financial risks among gig workers, especially when it comes to insurance coverage. Nearly one-fifth (18%) of gig workers are uninsured for critical protections like life, health, or disability insurance. This figure rises to 50% for those who depend solely on gig work as their primary income source.

Moreover, those without insurance tend to rely more heavily on gig work as their primary income, exacerbating their financial vulnerability. Among those with coverage, 57% depend on insurance provided by another person, making their financial security dependent on external factors.

“In today’s job market, the gig worker community is remarkably diverse, as is the type of gig work available,” said Securian Canada chief executive Nigel Branker (pictured). “Our data shows that gig workers are often financially vulnerable, raising concerns about the long-term financial security of this emerging segment of the workforce.

“The economic climate in Canada continues to introduce new challenges, and gig workers are finding themselves in a particularly vulnerable state. As the nature of gig work and the income it generates is often unpredictable, insurance is an important tool and can truly be a financial lifeline in times of need. Eliminating barriers, including offering digital-first solutions, is critical to improving access.”

Despite low levels of insurance adoption among gig workers, there is broad recognition of its importance. Protecting loved ones and covering unforeseen expenses are the top reasons for having insurance among those who are insured. Even among the uninsured, 86% acknowledge the necessity of insurance, and 78% see its value.

“Insurance should be a critical component of Canadians’ overall financial plans, helping to protect against unexpected costs and secure families’ futures,” Branker said. “Canada’s gig economy isn’t going anywhere. We look forward to continuing to work with our partners to develop efficient products that help remove barriers, meet today’s Canadians where they are, and empower them with better financial protection.”

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