Aon has partnered with entrepreneur platform Doerscircle to launch insurance for self-employed workers.
And catering to this underserved group presents a big opportunity for the duo.
The global professional services firm—which offers solutions around risk management, retirement, and insurance, among others—has partnered with Singapore-based entrepreneur platform Doerscircle to launch insurance products for freelancers, entrepreneurs, and startups, per a press release.
Aon partnered with Doerscircle to launch insurance for self-employed workers.
Business Insider Intelligence
The policies will first be offered in Asia and include small business insurance, inpatient health insurance, and cyber fraud and identity theft protection. Customers will be able to access the policies online via Doerscircle’s platform. Over time, Doerscircle aims to leverage Aon’s capabilities to launch more products and expand across geographies.
The new service will complement Doerscircle’s existing product suite, which could boost adoption. Doerscircle already offers a range of other services in partnership with various institutions, including accounting solutions, access to workspaces, and one-off healthcare outside of insurance policies.
The latest launch will further enhance the platform’s value proposition and offer members a more holistic product lineup. Moreover, Doerscircle has a free and a premium membership tier, with the latter including discounts on all services offered. Adding insurance could push more users toward the premium membership to get access to the service at a cheaper price.
Insurance is vital for self-employed workers, but legacy financial services aren’t meeting their specific needs—highlighting the need for solutions like Aon and Doerscircle’s.
Nearly half of the global workforce is self-employed, and their sustained income depends on appropriate insurance. Self-employed workers typically don’t have access to employee benefits like health insurance and coverage for their office supplies. That said, insurance is vital for this workforce, as their businesses often don’t have the cash reserve for unexpected expenses: In 2018, 40% of SMBs said they would go out of business if they encountered an uninsured loss of £50,000 ($63,817) or more.
Yet many incumbents don’t offer appropriate coverage for this group of workers, giving Aon and Doerscircle an opening to market their solution. The flexible hours and unpredictable cash flow of self-employed consumers have made it difficult for legacy players to offer tailored financial services. And while some insurance coverage is available for such players, it often doesn’t take the flexible nature of their work into account: Independent workers often face higher charges for insurance plans than employees of larger corporations. Aon and Doerscircle’s new offering should thus see uptake as it fills a largely unmet need in the market.
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