Digitalization and embedded insurance, solutions for independent workers

Although they represent more than 29% of the workforce in Latin America, according to ECLAC data, independent workers face growing uncertainty about their financial stability. According to a recent MetLife study, 65% of freelancers and self-employed workers in the region say their main concern is the lack of stable income, followed by the absence of benefits such as health insurance and protection against unforeseen events.

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The research also revealed that 70% of self-employed workers don't have a sufficient emergency fund to cover more than three months of expenses, that 62% have experienced late payments or fraud, impacting their financial planning, and that 58% find insurance expensive or difficult to obtain, limiting their access to financial protection.

In this context, independent workers are looking for accessible, digital, and flexible solutions that provide them with financial security without complications.

Given this reality, MetLife says the insurance industry has an opportunity to transform the way independent workers access financial protection. One of the most relevant trends in this evolution is embedded insurance, which allows coverage to be integrated directly into the user's digital experience, without the need for additional processes.

With this option, a freelancer can purchase income insurance with a single click when receiving a payment in their digital wallet, or add health coverage when subscribing to a service platform. This approach reduces friction, streamlines access to protection, and adapts to each user's needs.

Since its launch in 2023, MetLife Xcelerator has surpassed 4.5 million active consumers in the region, recently becoming a consolidated business unit. Its focus is on integrating insurance into key digital platforms, such as online banking, e-wallets, and e-commerce platforms, allowing more people to access coverage in a simple and convenient way.

“Consumers in Latin America increasingly value simplicity and integrated digital experiences. They seek solutions that anticipate their needs and keep them protected,” said Javier Cabello, leader of MetLife Xcelerator. “Our goal with MetLife Xcelerator is to democratize access to insurance, offering agile and personalized solutions for both our strategic partners and end users.”

See also: Penalties for self-employed workers who do not pay social security