Why the Gig Economy is Good for Claims Management

The gig economy is a labor market characterized by short-term or freelance assignments rather than permanent jobs. Whether you love it or hate it, the gig economy is here, and it’s likely here to stay.

We think that’s a good thing for claims management, and here’s why.

Offers new opportunities in technology

The gig economy goes beyond just temporary workers and the people who need their services—it also encompasses a lot of small businesses that grow into larger business over time. It’s also created an opportunity for technology platforms that make working with multiple specialized vendors easier. In other words, it’s one of the reasons companies like VenAssure exist.

Encourages localized and specialized support

Fields like workers’ compensation and private investigations are highly specialized with rules that differ from one state to the next. Licensing requirements vary, as do state reciprocity rules that govern mobile surveillance across state lines, and many other factors. The gig economy creates an environment where companies can source local vendors who not only know the laws of their state, but also know their local community, which results in a higher-quality investigation.

Helps cover the gaps

The aging workforce is taking a toll on the insurance industry, with more than 400,000 insurance professionals expected to retire in the next few years. Those companies are looking to replace key employees, and many of those will come from younger generations who are accustomed to the gig economy and experienced in using technology to source vendors. It can also help organizations be nimble enough to fill temporary needs when they occur.

Leads to lower overhead and market-based pricing

Many companies are using gig employees to lower total labor costs. While we’re not advocating for skirting employment regulations, there are many companies who use contract labor to fill short-term needs. That’s where the gig economy can be especially useful. Need a private investigator for a one-time assignment in a different state? The gig economy can help with that at an affordable and market-based rate. Because of the gig economy, you can search a range of options and choose the person with the experience and rate that matches your needs.