Episode 02 | Closing the Void: How Unemployment Insurance Could Protect Millions

Introduction

In this episode, Eleos Life CEO Kiruba Shankar Eswaran sits down with Best Insurance Co-Founder Kesh Thukaram to unpack the UK’s unemployment insurance void—and why closing this gap matters now more than ever.

In a world where we insure our cars, our pets, and even our smartphones without hesitation, it’s remarkable that most UK households still don’t insure their income, their single greatest asset.

This oversight leaves millions exposed to the financial and emotional free fall that follows sudden job loss.

“Illness may feel like the bigger risk, but unemployment can be just as devastating. The reality is that protection like this is hard to come by.” — Kiruba

What Is Unemployment Insurance?

At its core, unemployment insurance covers workers who lose their jobs through no fault of their own. That could mean redundancy or a sudden layoff, but not resignation.

• Cover: Pays up to 65% of gross income (around 90% of net, since payouts are tax-free)
• Eligibility: Most employed, self-employed, and contract workers can qualify, as long as they have a steady stream of income
• Claims: Straightforward process—salary slips, employment proof, and job-seeking activity validation

“One of the key features of unemployment insurance is they don’t pay any tax… what they get will be almost the same as their net income.” — Kesh

This makes the product unusually efficient compared to other types of cover. Every pound paid goes directly toward keeping families afloat, not into the tax system.

Why Isn’t Everyone Covered?

Despite its clear value, unemployment insurance is still uncommon in the UK compared to other countries. Unlike Australia and New Zealand where it’s standard practice for new employees to secure a policy as soon as they start work, the UK has never normalised this behavior.

“Not many people are quite frankly aware that there are such policies available… for a small sum of money, they can cover themselves.” — Kesh

People worry about job loss more than almost anything else, yet the solution is hidden in plain sight.

A mix of financial literacy gaps, lifestyle-driven spending, and limited distribution has left awareness at rock bottom. Many people simply don’t know the product exists, let alone how it works.

“A lot of people don't even actually type 'income protection'—they search for ‘job loss insurance’ or ‘redundancy insurance.’” — Kesh

Beyond the numbers, the impact of job loss runs deeper than missed pay cheques—it strips away daily structure, social connections, and self-worth.

“When people lose jobs, they also lose the majority of their social circle. It is a very soul-destroying, lonely place.” – Kesh

Unemployment insurance isn’t just financial cover—it’s a buffer against the hidden emotional toll of job loss. Financial safety nets can’t restore a person’s social network, but they can remove the crushing pressure of bills and debt—giving people space to recover emotionally as well as financially.

Why Isn’t It More Mainstream?

Large insurers have long treated unemployment insurance as a niche, high-risk product. Historically, the market was tied to mortgages—but that link is fading.

“Unemployment insurance is still treated as a bit of a specialist area… it’s not mainstream in the same way as pet, home, or motor insurance.” – Kesh

COVID reminded both consumers and insurers that job loss isn’t just an abstract risk. It can happen to anyone, overnight.

The pandemic paused unemployment cover sales but introduced millions to the concept of “private furlough,” boosting awareness and opening the door for broader adoption.

“In a bizarre way, the furlough also allowed us to increase awareness… people now understand our policies as a kind of private furlough.” — Kesh

This reframing is helping more people see unemployment cover as a natural part of financial resilience.

How Technology Is Changing the Game

Traditionally, pricing was blunt, relying heavily on age and historical claims. But that’s changing.

While big insurers hesitate, Best Insurance has stepped in to fill the gap—nimble enough to innovate, trusted enough to influence industry standards.

“We launched one of the UK’s first AI-driven pricing models, which doesn't need any manual intervention at all.” — Kesh

AI is transforming underwriting and pricing. By moving beyond blunt demographic factors, insurers can now assess risk more fairly, creating smarter, more personalised cover.

It’s not just about innovation for innovation’s sake—it’s about ensuring fairness and affordability at scale.

It’s a step toward smarter, more sustainable protection products.

Why It Matters Now More Than Ever

With rising living costs, shaky savings, and increasing job insecurity, the need for unemployment insurance has never been greater.

It’s not just about covering bills—it’s about safeguarding dignity, stability, and peace of mind.

“Why should everybody who is in a job not have this policy? It's one of the best ROI instruments one can ever have.” – Kesh

Imagine a generation of 21-year-olds starting their careers with unemployment protection built in. That cultural shift could redefine resilience across the workforce. Layoffs and redundancies would no longer spell financial doom.

What the Future Could Look Like: Universal Protection for All

Both Kiruba and Kesh share a simple vision: unemployment insurance should become as common as life or car insurance.

“If anyone getting new into employment sees value and the first thing they buy is an unemployment policy, we’ve cracked where we want to be.” — Kesh

At Eleos, we believe financial resilience isn’t optional—it’s essential. That’s why we’re making products like unemployment insurance accessible, affordable, and easy to embed. Because protection should be the rule, not the exception.