UK insurtech Zego to provide cover for bp's EV Pro trial
The London-based business fleet insurance provider, Zego, has teamed up with bp to provide the energy company’s drivers with cover as part of bp EV Pro – the all-inclusive electric vehicle subscription service trial.
Backed by Swiss Re, the cover supports the reduction of carbon emissions. The product has been created specifically for professional ride-hail drivers in London with the goal of encouraging them to choose electric vehicles over fossil fuel cars and bikes.
The EV Pro package has been incentivised with several benefits, including bp pulse, servicing, and maintenance as well as access to bp’s electric vehicle charging network. Zego’s cover will give ride-hail drivers immediate and correct cover upon delivery of the vehicle.
The bp EV Pro offers a driver everything they need to run their business in one easy weekly payment said Deepshikha Vasishta, global fleet director at bp, who added, “We partner with Zego given their flexible approach to insurance, especially in the ride-hail market.”
Zego expansion plans
Zego was founded in 2016 and its commercial motor insurance services have provided more than 17 million policies, covering 200,000 vehicles in five countries. Its pay-as-you-go and annual policies have proved popular with inner-city self-employed riders and drivers. The company also recently raised US$150mn in a Series C funding round, making it the UK’s first insurtech unicorn.
Zego's support of electric vehicles is also in line with Swiss Re’s commitment to the electrification of the transport network.
Sten Saar, CEO of Zego, explained, “Given that cutting carbon emissions and limiting the fallout of climate change are the biggest challenge we face as a society, Swiss Re is confident that this partnership will contribute to reaching the UK’s and the global net-zero ambitions.
“The electric vehicle market will have a huge role to play in the UK reaching its net-zero target by 2050 and we are already seeing businesses across the country adopt EV fleets to reduce carbon emissions.
“With our flexible, usage-based insurance product, we are supporting bp’s trial, by providing affordable solutions to ride-hailing drivers. This partnership is a huge milestone for Zego and we look forward to building a lasting relationship with bp.”
Simon Welton, Market Head P&C UK & Ireland at Swiss Re, agreed with Saar and said the collaboration was another step towards zero carbon goals. “Our vision is to make the world more resilient.
“Through our support of Zego, and by extension ride-hail drivers’ adoption of electric vehicles, we fulfill our vision of making the world more resilient by promoting safer roads and supporting the transition to a net-zero carbon economy,” he added.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.