Zego has become the first UK Insurtech to secure an insurance license which will enable it to build and sell its own products.
Zego, which offers flexible insurance to freelance workers such as drivers for Uber or riders for Deliveroo, said it was awarded the licence by the Gibraltarian regulator. The license will enable to company to now create new policies and analyse and implement product changes in less than 24 hours. Zego's insurance policies are being backed by 15 ‘A-rated’ reinsurers including Swiss Re and will continue to work in tandem with its growing network of insurer partners.
It will also allow Zego 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.
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 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.”
Adding: “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.”