Freedom with a safety net: how AXA empowers the gig economy with tailored protection

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The rise of the gig economy, driven by technological advances and a growing desire for personal freedom and mobility, has led to a noticeable shift in the way people work, especially among Gen-Z. This generation values flexibility and the ability to balance work with personal interests and lifestyle choices.
 
Today, terms such as gig work, flexi-work, on-call work and freelance work describe non-standard forms of employment that deviate from traditional norms. When these forms are widespread, they collectively form the "gig economy". 

The gig economy is also growing in Hong Kong. According to government data, out of a working population of 3.69 million, 0.29 million are classified as self-employed - a figure that excludes unpaid family workers.

The quest for flexibility in gig work, while appealing for its autonomy and mobility, may come at the expense of certain benefits for instance, the insurance protection traditionally provided by full-time employment, leaving freelancers exposed to various risks such as illness and accidents, says Angela Wong, Chief Marketing and Customer Officer at AXA Hong Kong & Macau.
 
According to a World Bank report, the self-employed and those working in non-standard forms of employment are largely outside the protection of social safety nets, especially social insurance schemes that protect workers against income shocks such as unemployment, accidents at work or disability. Therefore, it is important to formulate insurance policies that extend access and coverage of traditional social insurance schemes to the most vulnerable segments of the workforce. 

The most critical coverage gap is in health and accident insurance. A minor illness or accident can result in substantial medical bills, jeopardising their financial stability and forcing them to work even when unwell. This lack of health protection not only exposes them to serious financial risks, but also undermines their overall well-being.

"Life insurance and family protection are essential to provide financial security and peace of mind in times of unforeseen circumstances, but often overlooked in insurance coverage for the self-employed." Angela explains, “Retirement savings are another essential area where gig workers often find themselves unsupported, without the safety net of employer-sponsored plans, such as the ORSO and MPF schemes, many struggle to secure their long-term financial future.”  

Recognising the expansion of the gig economy and the associated protection gap, AXA offers comprehensive and suitable solutions, believing "being self-employed shouldn't be a risk".