Zego Cuts Losses by 88% as Insurtech Reaches Monthly Profit
Zego has reduced its net loss to £4m (US$5.4m) in 2024, down from £34m (US$45.9m) the previous year, as the insurtech reached monthly profitability by December.
The London-based company has maintained this momentum into 2025 while expanding beyond commercial insurance into the personal motor market.
Zego achieved the turnaround through disciplined portfolio management and pricing adjustments that eliminated underperforming segments.
Its group net loss ratio improved to 56.5% from 59.2% in 2023, supporting profitable underwriting performance across its commercial and personal lines.
Revenue growth accelerates in 2025
Zego has delivered 40% revenue growth year-to-date in 2025, supported by improved reinsurance terms that enhance capital efficiency.
The company has scaled its operations while maintaining cost discipline across its technology-driven platform.
The insurtech launched social, domestic and pleasure car insurance in February 2025, targeting new drivers through its app-based telematics platform.
The product has generated demand from drivers seeking greater control over their premiums through usage-based pricing models.
Zego introduced a Rest feature to its Sense app in 2025 to address driver fatigue through real-time feedback and personalised premiums.
The feature rewards responsible behaviour patterns identified through proprietary telematics data collected via smartphone applications.
Most of Zego's ride-hailing and van customers now use app-based telematics, alongside every personal car policy.
The technology enables dynamic pricing based on driving behaviour rather than traditional demographic factors used by established motor insurers.
“2024 was a defining year for Zego – we reached profitability and have carried that momentum into 2025”
AI automation reduces operational costs
Zego has implemented AI-driven automation across its operations to maintain lean staffing while scaling customer volumes.
It has achieved a 25% reduction in call volumes, with 60% of customer queries now resolved without human intervention.
Customer satisfaction scores have improved from 61% to 77% as automated systems handle routine enquiries more efficiently.
The AI platform enables instant claims payments and real-time engagement through digital channels including WhatsApp messaging.
This automation strategy supports Zego's growth plans without proportional increases in operational headcount.
It processes claims and policy changes through machine learning algorithms that reduce manual intervention requirements.
Personal motor market expansion
Zego entered the personal car insurance market to complement its existing commercial motor and fleet products.
The expansion targets younger drivers who face higher premiums from traditional insurers due to limited claims history data.
The personal motor product uses the same telematics platform developed for commercial customers, enabling real-time monitoring of driving patterns.
Policyholders receive feedback on acceleration, braking, cornering and mobile phone usage during journeys.
Zego prices personal motor policies based on actual driving data rather than postcode, age or vehicle type.
This approach appeals to careful drivers in demographics typically charged higher premiums by established motor insurers using traditional risk assessment methods.
The company plans to scale its personal motor business alongside continued growth in commercial segments including ride-hailing, delivery and van insurance.
Management expects both product lines to contribute to revenue growth over the next five years.
Funding strategy for continued expansion
Zego plans to finance future growth through a combination of retained profits and external investment.
The company reached monthly profitability in December 2024 and has maintained positive cash generation into 2025.
Zego expects to raise external investment to support expansion across personal and commercial motor segments.
“2024 was a defining year for Zego – we reached profitability and have carried that momentum into 2025,” says Sten Saar, CEO at Zego.
“I'm proud of how we're scaling responsibly, fuelled by innovation and our clear purpose: making good drivers better drivers.”