A gig economy is an economy where short-term and freelance jobs take more prominent space within the labor market, or a labor market system, over permanent jobs. People work as free-lancers, contractors, or outside workers on temporary jobs, projects, or assignments referred to as "gigs." Most of these gigs are gotten online or through smart phone apps that serve as online platforms that allow companies to easily hire or otherwise demand labor for a specific task or service. The gig economy becomes more important in the face of technological advancements, a change in work preferences, and an overall shift toward creating more flexible and on-demand workforces. It raises controversy, however, for job security, benefits, and workers' rights.
The boom of the gig economy is significantly transforming the business landscape of insurance as it produces new challenges and demands for coverage. Traditional employment provides so-called benefits, such as health insurance, workers' compensation, and unemployment insurance. All are provided by employers. Gig workers, technically categorized as independent contractors, typically miss these benefits. This has brought on a shift in types of insurance products needed for gig workers and new ways of structuring policies by the insurance providers.