Insurtech unicorn Zego develops flexi products for e-fleets
With a platform that enables both fleets and individual drivers to receive a quote in minutes, Zego’s new products have been developed in partnership with bespoke insurance solution provider Wakam.
There will be two new options:
- A usage-based product for mopeds. Similar to other offerings gaining popularity at the moment, policyholders will pay a low monthly fee and then additional small costs for every mile travelled. Telematics will be calculated by ABAX.
- Fixed-term annual cover for e-fleets charged per month. Zego is marketing this product as ideal for companies wanting to avoid lump sum insurance payments. This alternative could help small businesses maintain good cash flow and also only includes fleet vehicles ‘in use’, not just the fleet as a whole, also saving money.
Delivery services: Growing insurance potential
In addition to the enhanced flexibility of these new products, Zego states that policies can be expected to go live very quickly - between as short as one week and just under one month.
This move is to reflect the rapid development and agility of contemporary delivery services; scores of food and grocery companies have realised the value of online portals, and insurtechs like Zego are moving to capitalise on the trend.
“The market for fleet moped and e-bike businesses is growing at a rapid pace, particularly due to the surge in delivery and courier services as a result of the COVID-19 pandemic,” said Ines Feracci, Commercial Director.
“We recognise the growing use of mopeds and e-bikes by delivery drivers and riders up and down the [UK], and are pleased that alongside our partners we are now able to provide a far more affordable and fairer insurance model for these businesses.”
Zego makes insurtech history
March has proved to be a significant month for Zego and UK insurtech, as the company became the nation’s first sector entity to achieve unicorn (US$1bn+ valuation) status. It reached the important milestone following a $150m Series C round.
“This latest round of funding is a huge milestone for Zego. It is a testament to our relentlessly hard-working team and a clear validation of the need for Zego’s products in the market. That being said however, we see this investment as simply another step in our journey towards powering opportunities for businesses across the world,” commented CEO Sten Saar.
