Even before COVID-19, the gig economy was changing how people work, as businesses rapidly adapted to provide on-demand services to meet customer expectations.

Insurers must become nimbler and embrace insurance products where coverage adapts with changing business operations and exposure is accurately captured. For example, ridesharing services use an “insurance-by-phase” risk model, meaning coverage varies at certain points within the trip (e.g., when a driver indicates they are available to pick up passengers). Other concepts account for miles driven, time behind the wheel or where vehicles are operated.