The self-employed are one of the groups most affected by the impact of COVID-19. It is precisely for this reason that their interest in taking out insurance to cover their backs has grown during the health crisis.
The pandemic has led to an 11% increase in the number of self-employed people taking out insurance. This is not surprising, since the self-employed are precisely one of the groups most affected by the health crisis. In fact, 3 out of 10 self-employed recorded losses of more than 30,000 euros throughout 2020, according to data from the National Federation of Self-Employed Workers' Associations (ATA). In the third quarter of 2020 alone, more than 100,000 professionals withdrew from the Special Regime for Self-Employed Workers (RETA).
"In a context of crisis, having adequate coverage, such as sick leave, an accident that prevents work or a family event, among other things, becomes more important among the self-employed," says the report, which notes that "while it is true that during the months of confinement the drop in the number of self-employed could be seen in turn in the drop in the search for insurance for the self-employed and SMEs, subsequently, during the first months of the year 2021, an upturn of 11% has been observed in this type of policies for the self-employed, businesses and the corporate sector, which indicates that, despite the crisis, the self-employed not only do not discard having insurance, but also have a more cautious attitude and are interested in seeking policies that meet their needs", it analyzes.
Insurance lends a hand
At the time the study was published, at the end of last March, only 23.6% of the self-employed had their business running at full capacity, which makes it difficult for the self-employed to have the same economic level as before the pandemic. For this reason, many insurers have tried to provide facilities by offering aid, such as a discount on the premiums of policies covering risks for activities that could not be carried out due to the state of alarm, since these exceptional measures prevented the group from carrying out their activity properly, or in the case of individuals, an interest-free splitting of premiums. Likewise, numerous insurance companies have added to their sick leave coverages the sick leave due to contracting COVID-19, in addition to offering aid to the sector to facilitate the payment of the same insurance. The aids launched by the insurers themselves have helped the self-employed to change their perception of this type of product and they now value this option more highly in order to protect their businesses in times of pandemic. Health, life, accident or sick leave insurance are some of the recommended products for this group.
The role played by insurance and the awareness of self-employed policyholders is even greater, firstly because they have been among the professionals most affected by everything that has happened, and secondly, because they, in most cases, do not have the financial muscle and security that being part of a large company can provide and therefore the effects and exposure to risk are much greater.
The self-employed is a company and, in its proper proportion, should also have a comprehensive insurance program, since its exposure to risk is not much different from that of a medium-sized company.
Like the medium-sized company, the self-employed is sensitive to these new risks that could materialize and, for that reason, is concerned about coverage for them.
From CR to cybersecurity
It will depend on the activity you carry out, but from our portfolio we would highlight a General CR or a Professional CR, depending on the activity you are engaged in. In turn, an insurance specialized in cybersecurity, regardless of the sector to which it is dedicated as long as it has a technological component to develop its activity.
Clearly, one of the trends we are experiencing in companies in all sectors is digitization and the use of new technological tools to provide better service to customers.
All this digitalization and connectivity entails a series of risks, and SMEs and freelancers are beginning to realize that cyber risk does not only affect large companies or institutions. Therefore, cyber-risk insurance is one of the options that companies are taking into account the most, since a cyber-attack can entail many losses.
On the other hand, the multi-risk insurance gathers in a single policy the coverages and services that most SMEs need for comprehensive protection. It is a very complete product, easy and quick to process and flexible, which helps companies to face the numerous difficulties that arise for the correct development of their business activity, avoiding unforeseen events and solving problems efficiently and quickly.
News Source: Adn del Seguro 07/06/21