Zego gains EU broker license to reduce post-Brexit friction

Zego has announced that it is the first UK insurtech to secure an EU broker license in advance of the Brexit transition period’s termination.

Awarded by Dutch regulatory body AFM, the company states that it will now be able to continue serving its customers across Europe, including Ireland, France, Spain, Italy and more, without disruption.

Furthermore, with its presence on the continent now secured, Zego intimates that further expansion could be on the horizon as it continues its quest to disrupt the insurance market with real-time data and fair pricing.

“We have big plans for the European market and by securing this licence, we now have the freedom to continue expanding into new territories and providing new EU-based customers with smart, data-driven insurance,” said Nick Pester, General Counsel.

“Just like in the UK, the insurance market in Europe has barely changed for decades and unsurprisingly there is now a growing appetite among businesses for more modern, flexible and accurately-priced insurance policies. 

“We are in the perfect position to meet this demand and look forward to partnering with many more businesses across the EU in the coming years.”

Insurance: Strong but vulnerable

In 2019, Deloitte assessed the UK insurance market’s viability in the post-Brexit EU, particularly in the event of a ‘no deal’ situation from the 1 January 2021. 

Managing investment of approximately £1.8trn and employing over 300,000 people, it is one of the largest in the world. However, Deloitte still found that it was vulnerable to disruption from the increased regulation of an already deeply interconnected relationship with EU institutions.

“The insurance sector is however faced with simultaneously navigating competitive pressures whilst mitigating the broader impacts of Brexit – including the impact of controls on the free movement of services, capital and people. The winners will be those in the sector prepared for change and alive to the opportunities,” it stated.

With negotiation deadlines between the UK and EU constantly shifting as talks go down to the wire, the insurance industry (and others) will be eagerly awaiting definite news on how their business can continue with the least amount of disruption possible.