International Finance

UK Insurtech startup Zego first to get insurance licence

Zego insurance
While Zego will continue to work with its partners, the licence will help the startup innovate new policies

London-based Zego became the first insurtech startup to receive an insurance licence in the UK. According to media reports, Zego will not cease working with its network of partners. Instead, it will use the licence to innovate new insurance policies.

Chief executive Sten Saar believes the insurance licence will help Zego to act faster, speed up innovation and at the same time reduce the risk impact.

Sten Saar told the media, “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.”

He added, “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.”

Zego, which was founded in 2016, offers flexible insurance to freelance workers such as drivers for Uber or riders for Deliveroo. Currently, Zego has 15 ‘A’ rated reinsurers as partners which also includes Zurich-based Swiss Re.

According to the company, it has provided over 100 million hours of insurance protection to over 82,000 vehicles.

Earlier this year, Zego raised around $42 million in a fresh round of funding, notably, one of the largest funding rounds for an insurtech startup based in Europe. Reportedly, the company will use the fund to expand its business across Europe. Some of its investors are Target Global, LocalGlobe and Transferwise CEO Taavet Hinrikus.

Zego’s insurance service is currently available in five countries including the UK.

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