Zego gains EU broker license to reduce post-Brexit friction
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
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 , the insurance industry (and others) will be eagerly awaiting definite news on how their business can continue with the least amount of disruption possible.
Global investment in insurtech reaches all-time high
Global investment in the InsurTech sector reached an emphatic record during H1, 2021, as half-year funding of US$7.4 billion exceeded full-year investment in 2020, and in every other year, according to the new Quarterly InsurTech Briefing from Willis Towers Watson.
It was found that the latest quarter saw 162 deals yield more than $4,824 million in investment, a 210% increase over Q2, 2020. The enormous quarterly total, itself more than any annual total before 2019, was driven largely by 15 mega-rounds of $100 million or more. Collectively, these deals reached $3.3 billion, or two-thirds of total funding during the quarter. The money was raised predominantly by later-stage players seeking expansion.
A need for the insurance community to reflect digital changes
Series B and C fundraisings drove a large number of deals in the second quarter, but the number of early-stage deals also increased. They were up by more than 9% from the previous quarter, and 200% from pandemic-stricken Q2, 2020. As a percentage of overall deals, early-stage activity held roughly steady, at 57%.
InsurTechs focused on distribution accounted for 55% of start-up deals, and for 10 of the 15 mega-rounds. Most of the distribution InsurTechs target reduced dependence on agent channels. Of all Q2 deals, 73% were for P&C-related InsurTechs, while 43 companies raised funds for L&H technology. Funds were raised by companies from 35 countries, including new entrants Botswana, Mali, Romania, Saudi Arabia, and Turkey.
Dr. Andrew Johnston, global head of InsurTech at Willis Re, said: “As technology changes our lives, society will demand an insurance community that reflects and supports our changing, digitally empowered behaviours. Consumers and businesses increasingly expect insurance to be delivered when and how they want it, and risk carriers that fail to respond will fall away over time. To embrace technology is a minimum survival condition. Those that use it to redefine service in the insurance world will thrive. That means a positive future for InsurTechs that bring a truly differentiated business approach to our industry. Some of them will create untold long-term opportunities for themselves and the insurance sector.”