Zego, a UK based firm, has become the first UK Insurtech to receive an insurance license, according to a release from the company. Zego will now be able to build and sell its own insurance products.
Zego, which raised $42 million this past June, has been backed by 12 different re-insureres including Swiss Re. Zego states that it will continue to work in concert with its insurance partners while simultaneously innovating with new policies. The license will give Zego the opportunity to harness the 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.”
Sten Saar, CEO and co-founder of Zego, called the regulatory approval a huge milestone for Zego:
“The license 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,” said Saar. “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 that his company is very pleased to have been able to support Zego with their 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.”
Zego was founded in 2016 to provide flexible insurance for the gig economy. Zego has since expanded into mobility services such as ride-sharing.
Zego offers a range of policies from minute-by-minute insurance to annual coverage. Zego currently operates in five countries and plans to expand further across Europe and continue growing its workforce in the coming months.
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