Founded in 2016 by Harry Franks and Sten Saar, Zego is a commercial motor insurance company that powers businesses’ opportunities, from self-employed drivers and riders to entire vehicles’ fleets.
The insurtech company combines advanced technology with multiple data sources to offer insurance products and lets businesses save their time and money. It earned its own insurance license in 2019, enabling it to build and sell its own policies, in addition to working alongside other insurers.
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.
It has also been involved in insuring e-scooters for the government UK trials.
The first unicorn in the sector, and helping to reduce carbon emissions
Following a US$150m Series C round earlier this year, Zego reached a value of $1.1bn and secured its position as the UK’s first-ever unicorn in the sector. The funding was led by fintech investor DST Global, which has invested in the likes of Klarna, Stripe and Airbnb, and new investor General Catalyst, whose founder and managing director Joel Cutler joined Zego’s board.
With climate change in the minds of most businesses, the company recently 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.
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.”