A notable number of Canadians are reliant on gig income to help make ends meet and a significant number of these Canadians are largely underinsured, according to a new report from Securian Canada, entitled Behind the Gig: Securian Canada Insights.
The significant insurance gap – 18 per cent of gig workers do not have any insurance; among those who rely exclusively on gig work as their only source of income, 50 per cent said they do not have insurance – exists despite the fact that 86 per cent agree that insurance is necessary and 78 per cent see value in it.
“A major barrier to obtaining insurance is perceived cost,” the report’s researchers add in a statement about the publication’s release. “Nearly two-thirds (63 per cent) of uninsured gig workers don’t think they can afford coverage.”
Financially vulnerable
Overall, they say 22 per cent of Canadians, approximately 7.3-million adults across the country, are gig workers. Of these survey respondents, 57 per cent say they rely on this type of work to supplement their primary income. “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,” they add. “Nearly three quarters, 73 per cent, of all gig workers are either employed full-time or part-time outside of their gig work.”
The majority of the 2,020 survey respondents further said that they do not plan on purchasing an insurance policy in the future: 76 per cent said they do not intend to purchase while 24 per cent said they do have plans to obtain coverage.
“In many cases, perceptions of unaffordability remain the primary barrier,” the report states. “Removing barriers to accessing important financial tools like insurance is crucial to help Canadian gig workers safeguard their financial futures.”
