London-based firm Zego is to be awarded an insurance licence, the first UK insurtech to achieve this.
It can now build and sell its own products, backed by 15 reinsurers including Swiss Re. Furthermore, it enables the firm to innovate and implement product changes in less than 24 hours.
In addition, Zego aims to use the insurance licence to harness the data in collates to develop automated pricing technology. it will monitor driver behaviour and external data to offer personalised policies in proportion to each customer’s true level of risk.
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, added: “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.”
According to Zego, it has sold more than 100 million hours’ worth of policies. In addition, over 80% of this total has been sold in the last year.
According to Zego, it currently insurers a third of the UK’s food delivery market, mainly through partnerships with Deliveroo, Just Eat, and Uber Eats.
Zego policies have insured the equivalent of 267 million pizza deliveries, half a billion e-scooter rides or 137,000 months of on-demand car subscriptions.