Collective Benefits, which helps the self-employed access tailored insurance policies, has bagged £3.3m in its funding round.
The round was supported by Stride.VC and previous Collective Benefits backers Insurtech Gateway, Delin Ventures and angel investors.
With the new funding, the startup will accelerate its growth and will release a consumer service aimed at freelancers later in the year.
Collective Benefits aims to fix the protection gap in the gig economy, which will let self-employed workers access basic benefits such as family leave and sick pay, as well as other safeguards like mental health support and critical injury pay.
Collective Benefits CEO and co-founder Anthony Beilin said, “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. We are building Collective Benefits so that the gig economy workers are covered by the same protections typically reserved for full-time employees.”
The InsurTech startup is working with several on-demand service platforms to help their workforces access benefits. Gig platforms can leverage the platform to increase loyalty, lower staff turnover and reduce costs while providing their workforce with sick pay, family leave, and mental health support, the company claims.
Insurtech Gateway director and co-founder Robert Lumley said, “The insurance industry faces a massive challenge in keeping up with the extraordinary growth in self-employment. Collective Benefits has created entirely new insurance products for the self-employed not addressed by traditional insurers and accessible through a flexible tech platform that allows them to get the cover they need.”
Last year, Insurtech Gateway contributed to the $3m funding round of Insurdata, a property-specific data platform which helps re/insurance firms improve underwriting.
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