Singapore government to help formulate insurance framework for gig workers

New insurance products expected to hit the market next year

Singapore government to help formulate insurance framework for gig workers

Insurance News

By Gabriel Olano

The Singapore government recently accepted the recommendations of its Tripartite Workgroup (TWG) regarding the nation’s “gig economy”, including workers’ insurance concerns.

The TWG recommended that the Ministry of Manpower, National Trades Union Congress, and Singapore National Employers Federation work together with insurers to develop a framework for insurance products targeted at self-employed persons (SEPs). The insurance products need to address loss of income due to prolonged illness or injury by providing a daily cash benefit. Additional protection can also be added via optional riders.

Insurance products for SEPs are different from those for company employees. The TWG recognised that higher premiums for SEPs in high-risk occupations may turn away potential buyers of this kind of insurance. To address this, it recommended that the government promote the adoption of insurance through licensing controls or by acting as a service-buyer.

The insurance product catering to SEPs is expected to be available next year.

As part of the government’s response to the recommendations, Second Minister for Manpower Josephine Teo expressed hope that the new standards will “shape contracting norms and entrench best practices” in the future. The public sector will begin implementing changes aligned with the standards by mid-2018, and the government will step up efforts to promote insurance among SEPs in high-risk industries.


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