Collective Benefits, a UK insurance tech platform, has raised £3.3 million in seed funding to develop a financial safety net for those working in the gig economy. The round was led by Stride.VC, with support from existing investors Delin Ventures, Insurtech Gateway and several angels. “There are six million self-employed workers in the UK, which includes both higher-paid freelancers and gig economy platform workers. Yet neither group typically has a safety net: no holiday pay, no family leave, no mental health support, not even paid sick days,” explained Anthony Beilin, CEO and co-founder of Collective Benefits.
Of those six million workers, 96 percent don’t have any form of income protection and 93 percent don’t have health or critical illness cover.
Beilin himself was out of work for six months after a serious back injury, an experience that inspired this company. “We are building Collective Benefits so that the gig economy workers are covered by the same protections typically reserved for full-time employees,” he said. Ultimately, the aim is to reduce risk for the segment of people that is estimated to be 20 percent of the British workforce by 2025.
The insurtech startup positions itself for both gig platforms and self-employed individuals. Gig platforms and freelance marketplaces can use Collective Benefits to retain workers and reduce talent acquisition cost. Individual freelancers can join as members, accessing benefits at a cost that, ideally, suits their income level.
Founded in late 2019, the company is already working with some on-demand service platforms but has not opened up to freelances yet. A consumer service aimed at freelancers will follow later this year. As for now, the seed funding will help expand the product offering for gig platforms.