Flexible policies are the future of the insurance industry

Sten Saar, Co-founder and CEO, Zego

Compared with other financial sectors such as personal finance, the insurance industry has been extremely slow to adapt to the changing needs of customers. For the most part, customers looking to buy insurance are often limited to rigid insurance products that aren’t necessarily what they want or need, and are often difficult to understand.

Nowhere is this more apparent than in the world of commercial motor insurance. Take for example the continually growing number of delivery workers playing such a crucial role during the pandemic. Many of these drivers and riders have chosen to take on delivery work in order to supplement a loss of income and may only actually be looking to work part-time, yet they face having to pay for a full month or even a full year’s worth of cover. This simply doesn’t make sense.

A similar problem is faced by fleet business owners. A private hire taxi business, for example, may have had many of its vehicles off the road for days, weeks or even months of the year – whether due to seasonal dips in activity, or continued national or local lockdowns. Yet when it comes to their insurance, fleet business owners are similarly limited to rigid annual policies which aren’t necessarily conducive to healthy shorter-term cash flows.

Zego was founded in 2016 to provide a solution to this problem. Since its inception, Zego has offered insurance products in the new mobility space that are simple, flexible and usage-based, so that people who use vehicles to earn money have the option to pay for the insurance they need, right when they need it. So far, Zego has sold more than 14 million policies and currently insures approximately half of the UK’s food delivery drivers and riders – providing protection for over 200,000 vehicles.

Furthermore, by recently incorporating driver behavioural data through its acquisition of telematics company Drivit, and by layering this information on top of not just its existing data points, such as more generic factors like age, location and vehicle type, but also data shared through its technical integrations, Zego is now pricing insurance policies far more accurately and fairly than its competitors. By doing so, Zego is on a mission to save its customers – people who use vehicles to earn a living – both time and money.

To learn more about how Zego saves people and businesses time and money, visit zego.com

Cover Image provided by Zego