New data from Securian Canada reveals that many gig workers are uninsured or underinsured, leaving them financially vulnerable
A new research report, Behind the Gig: Securian Canada Insights, reveals that nearly one-quarter of Canadians (22%) – or approximately 7.3 million adults – are participating in gig work of various kinds across the country. According to the survey, conducted in collaboration with the Angus Reid Institute, most Canadian gig work is done out of financial necessity, with more than half of gig workers (57%) relying 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.”
“In today’s job market, the gig worker community is remarkably diverse, as is the type of gig work available,” said Nigel Branker, Chief Executive Officer, Securian Canada. “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.”
According to the data, Canadian gig workers are creative in the ways they participate in gig work, including 30% of gig workers participating in specialized services like photography and consulting, 25% participating in online commerce, and 21% participating in freelance digital services such as tutoring and graphic design.
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Economic pressures are driving gig work in Canada
Despite the size and scale of Canada’s gig economy, the data also brings attention to the primary drivers behind this type of work. While one-quarter (26%) view their gig work as a hobby, the majority see it as a necessity. More than half (57%) of gig workers rely on this type of work to supplement their primary income, equivalent to roughly four million people. Nearly three-quarters (73%) of all gig workers are either employed full-time or part-time outside of their gig work.
The most common reason Canadians are engaging in gig work is the increased cost of living, cited by nearly one-third (31%) of gig workers. For most, gig work generates a small but necessary proportion of income, with gig workers reporting that this income stream accounts for just 15 per cent of their total income, on average.
Financial vulnerabilities compounded by lack of insurance
In addition to needing supplementary income, gig workers also face other financial vulnerabilities. Notably, many gig workers are uninsured or underinsured. The data shows that when asked if they have certain types of insurance, such as life, health and dental, critical illness or disability, nearly one-fifth (18%) of gig workers said they do not have insurance.
Among those who rely exclusively on gig work as their only source of income, 50% said they do not have insurance. Further, uninsured gig workers are more likely to have a higher proportion of their income coming from this type of work, compounding their financial risk. Among gig workers who have insurance, almost six in 10 (57%) rely on insurance coverage provided by someone else, placing their financial security outside of their own hands.
“The economic climate in Canada continues to introduce new challenges and gig workers are finding themselves in a particularly vulnerable state,” said Branker. “As the nature of gig work and the income it generates is often unpredictable, insurance is an important tool and can truly be a financial lifeline in times of need. Eliminating barriers, including offering digital-first solutions, is critical to improving access.”
Bridging the insurance divide
Despite worrisomely low levels of insurance adoption among gig workers, most gig workers recognize insurance as essential. Among those with insurance, protecting family and loved ones was cited as the top reason for having insurance, followed by safeguarding against costly expenses. Even among uninsured gig workers, most believe that insurance is necessary (86%) and see value in it (78%).
“Insurance should be a critical component of Canadians’ overall financial plans, helping to protect against unexpected costs and secure families’ futures,” said Branker. “Canada’s gig economy isn’t going anywhere. We look forward to continuing to work with our partners to develop efficient products that help remove barriers, meet today’s Canadians where they are, and empower them with better financial protection.”
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