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Gig-economy insurtech becomes first UK disruptor awarded insurance licence
London-based Zego can now build and sell its own products, backed by 15 reinsurers including global giant Swiss Re.
Zego has become the first ever UK insurtech to be awarded its own insurance licence, allowing it to build and sell its own products.
Zego will still work in tandem with its growing network of insurer partners, but 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.
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 says its insurance policies are backed by 15 A-rated reinsurers, including global giant Swiss Re. News of the licence just comes five months after Zego raised $42m in Series B funding - one of the largest funding rounds for a European insurtech start-up – to fuel its expansion across Europe.
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.”