UK-based startup Zego has become the first UK Insurtech to obtain an insurance license. This enables the company to build and sell its own products as an insurer in the country.
In a press release, the firm said it sees the recognition as an opportunity to utilize the data it collects to develop automated pricing technology. In response to the recent credit, Zego claimed it will continue working alongside its insurance partners while simultaneously innovating new policies and implementing product changes in less than 24 hours.
“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 CEO and co-founder of Zego, Sten 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.”
Founded in 2016, Zego works as an insurance company that delivers top-of-the-range, flexible insurance for the gig economy. To date, the startup firm claims to have provided more than 100 million hours of insurance protection to over 82,000 vehicles. It also currently backed by a total of 15 A-rated reinsurers, including the world’s second-largest reinsurer, Swiss Re.
In June this year, Zego has raised a total of $42 million in Series B funding to fuel its expansion across Europe, creating one of the largest known funding rounds for a European start-up.
In the same release, Simon Welton, market head P&C UK & Ireland at Swiss Re, shared his delight about Zego’s recent recognition:
“Swiss Re is very pleased to have been able to support Zego with our risk knowledge and reinsurance capacity. We look forward to continuing to work with them in the future and supporting their growth plans.”