Zego, the UK-based commercial motor insurance company, is planning European expansion, the company announced on Wednesday (January 19th), according to a report from UKTechNews.
InsurTech, which offers safe drivers up to 20% off premiums, has launched in the Netherlands and is expanding into France. The company also operates in Ireland, Spain, Belgium and Italy.
Founded by former Deliveroo directors Sten Saar and Harry Franks, the company achieved unicorn status last year when its value surpassed $1 billion. In 2021, the company grew to 637 employees from 300 employees in January 2020. Additionally, Zego has increased its cash reserves with a Series C funding round of $150 million.
Zego’s expansion comes as traditional insurers in Europe consolidate. For example, the Dutch insurance market fell by 9% between 2019 and 2020.
Also in 2020, Zego acquired Drivit, the Portugal-based telematics company, in a deal that will see the combined company collect real-time driver behavior data internally.
“Telematics and data science have proven they can improve driving behavior, and when combined with a financial incentive, they have great potential to make fleets safer and cheaper to operate,” said Saar said.
Like other industries, the pandemic has altered consumer relationships with insurance products. While data reveals that consumers have used insurance less because teleworkers are less prone to accidents and illnesses, COVID-19 has caused these same homebound consumers to place a higher value on medical insurance and life.
Read more: InsurTech, Not The Pandemic, Drives Insurance Innovation
As recovery rates have gone up, attrition rates have fallen, and response rates for insurance products have gone up, Franklin Madison chief financial officer Preston Porter told PYMNTS in a recent chat. .
“We have seen that it is vital for [insurers] to be able to offer a wide variety of products to their consumers, because their consumers need and want them,” he said.