Temper x Alicia Benefits

Pay-per-use collective insurance for gig workers

The challenge

Gig work has been around for a while now (even longer than most know), and shows no signs of slowing down. From bike couriers to baristas to design to entertainment, the word ‘gig’ supports a broad range of work.

Temper is the biggest hospitality gig platform in the Netherlands, supporting over 300.000 gig workers, or as they call them: FreeFlexers. These are predominantly younger people, who pick up short shifts in hospitality, delivery, retail and logistics. Previously, Temper and Alicia embedded a usage-based, individual insurance solution into the platform. This allowed FreeFlexers to arrange their insurance for their shifts via Temper, without the risk of overpaying. On-demand business liability and accident insurance were only a few clicks away. However as time passed by, including a global pandemic, the need for a gig-work-proof insurance solution for illness and incapacity for labour became more and more evident. With such uncertain times, the importance of insurance as a whole became more apparent. A good time to reassess the insurances offered through Temper. So, Temper and Alicia went back to the drawing board together.

 

The solution

One aim of this renewed collaboration was the easier part: significantly increase the number of insured FreeFlexers. How? By creating a collective insurance product for the Temper community as a whole. That way, all FreeFlexers are insured for business liability and accidents. Significant increase: check.

However, a sick pay insurance solution for gig workers was still unheard of, and therefore a bigger challenge. An entirely new product had to be developed, to pave the way for better insurance for gig workers. An important factor to keep in mind is the predominantly flexible, side job nature of gig work. Gig work is typically not a person’s main or only job for the foreseeable future. So rather than offering a heavy, traditional sick pay solution, a more fitting solution was developed. The final solution offers coverage for a maximum of 2 years in case a FreeFlexer is unable to work and attend school. If they happen to fall ill, their monthly compensation is calculated based on their earnings through Temper of the 3 months prior. Besides that, FreeFlexers are offered practical aid in case of need, and are eligible for a one-off compensation in case a close family member passes away, or if they become a parent.

With this first-of-its-kind collective insurance for gig workers, Temper is a great example of how a platform can lead the way in caring for its freelance users, helping the gig economy mature and solidify its place in society.