IE magazine has always believed that the existing offer of Fully Comp or TPF&T in the car/bike market belongs in the dustbin of history. We don’t use our two, three or four wheeled vehicles that way anymore. Think leasing vs owning cars, occasional sunny Sunday motorcycle use, or gig economy scooter/moped miles, mainly Friday/Saturday evenings when people want food delivered.
The market needs much more flexibility, and insurance companies muct be willing to engage in the tricky business of asessing risk in real-time, and then offering insurance via micro-payments for those who only need to use a vehicle maybe two or three days per week. Step up Zego, they are doing it. Right here, right now.
Here’s the latest;
Zego has become the first ever UK insurtech to be awarded its own insurance licence – a huge milestone for the business that will enable it to build and sell its own products.
While Zego will still work in tandem with its growing network of insurer partners, the licence will enable the company to innovate with new policies and analyse and implement product changes in less than 24 hours.
Crucially, it will also give Zego the opportunity to harness the vast amount of data it collects to develop automated pricing technology – monitoring driver behaviour and external data to offer policies priced in proportion to each customer’s true level of risk.
Zego’s insurance policies are being backed by 15 A-rated reinsurers, including global giant Swiss Re. News of the licence just comes five months after Zego raised $42million in Series B funding – one of the largest funding rounds for a European insurtech start-up – to fuel its expansion across Europe.
The company was founded in 2016 to provide flexible insurance for the gig economy and has since expanded its B2B offering to cater to the fast-growing market of new mobility services, such as ride hailing, ride sharing, car rental and scooter sharing. Zego offers a range of policies from minute-by-minute insurance to annual cover, providing more flexibility than traditional insurers, with pricing based on usage data from vehicles. Zego currently operates in five countries and plans to expand further across Europe and continue growing its workforce in the coming months.
Sten Saar, CEO and co-founder of Zego, said: “This is a huge milestone for Zego and a clear signal that we are here to stay. The licence is also an essential ingredient in our mission to transform the insurance sector, by creating flexible policies which better reflect risk and truly cater to the fast-evolving world of mobility.
“We have already started selling our own products but will continue to partner with other insurance companies, with this collaboration still a crucial part of our business model.”
Simon Welton, Market Head P&C UK & Ireland at Swiss Re, said: “Swiss Re is very pleased to have been able to support Zego with our risk knowledge and reinsurance capacity. We have been impressed by Zego’s innovative and passionate approach to creating new insurance products which meet the changing needs of customers. We look forward to continuing to work with them in the future and supporting their growth plans.”