London-based commercial motor insurer Zego attained unicorn status last year, thereby becoming the first insurtech unicorn in the UK. The insurance provider powers opportunities for businesses ranging from fleets of two vehicles to global enterprises.
Aggressive expansion plans
In the recent development, the company appears to be in aggressive plans to expand into Europe. It has announced that it will launch in the Netherlands and ramp up its operations significantly in France. Like the UK, both France and the Netherlands have seen operating costs covering fuel, wages, and maintenance rocket in recent months. The company operates in seven countries and is likely to launch in other new European countries later this year.
The international expansion follows an exciting 12 months for Zego, where the company grew its headcount to more than double from 300 to 637 in two years.
Sten Saar, CEO of Zego commented: “Commercial vehicles now account for over 13% of the vehicles on our roads, the highest proportion ever recorded, and this number is rising, as technology continues to decentralise our shopping and travel habits. For the people and businesses managing these fleets, flexibility and control are both highly sought after, but driver behaviour remains a huge variable that is notoriously difficult to influence.”
Founded by ex-Deliveroo team
Founded by ex-Deliveroo directors Sten Saar and Harry Franks in 2016, Zego has enjoyed immediate success after pioneering flexible price-per-mile insurance. This product, which enables fleet managers and self-employed drivers and riders to pay only when their vehicles are in use, has been critical to the survival of many businesses during the pandemic.
Since its foundation, Zego has gone on to revolutionise its commercial insurance products and now supports fleets and drivers working for some of the largest last-mile companies in the world including Amazon, Uber, BP and Deliveroo.
For now, Zego has raised over $240 million in funding and was the first UK insurtech to be valued at over $1 billion. It was recognised by Deloitte as one of the UK’s fastest-growing tech companies in their tech Fast 50 Awards.
Flexible insurance plans
It intends to target the over £20 billion European fleet insurance market by providing a product that rewards better and safer driving. Further, Zego offers a range of cover options from flexible pay-as-you-go insurance to annual policies. Since its debut, the British startup has provided over 17 million insurance policies and covered more than 200,000 vehicles in five countries. The company has raised over $200 million so far.
Zego’s tech-led proposition centres around a fully-automated fleet portal, harnessing telematics to unearth behavioural insights that empower fleet managers to improve performance and take control of the price of their premiums.
It offers fleet managers the ability to save up to 20 percent on premiums at renewal, Zego’s fleet portal saves fleet customers up to 40 percent on admin time, while also helping to improve route efficiency, minimise vehicle and driver downtime, reduce fuel costs, reduce wear and tear, slash maintenance bills, and ease road congestion.
Its data suggest that its fleet offering precipitates up to a 10 percent reduction in claims, due in part to the greater oversight of driver behaviour. Zego believes that aligning insurance premiums to the driving behaviour of fleets can lead to a dramatic drop in road collisions by commercial vehicles.