Zego, the London-based fleet and mobility insurance provider, has received a broking license from the Dutch regulator AFM. The license provides a foundation for the company’s continued expansion across Europe, enabling it to work with EU-based insurance partners and customers, and operate in new territories without obstacles once the Brexit transition period ends on Dec. 31, 2020.
Zego currently serves customers in Ireland, France, Spain, Belgium and Italy, working with well-known brands such as French e-scooter company Dott and Free Now in Ireland.
The company said it is the first UK insurtech firm to secure a European broking license, which will ensure that business can continue as normal in these key markets, enable the company to enter new territories during 2021, and expand its team in those markets, according to Zego in a statement. (Editor’s note: Under EU “passporting” rules, when a company is licensed to operate in one EU country, it is able to do business in all EU countries without needing additional licenses).
The company was founded in 2016 to provide flexible insurance for the gig economy and has since expanded its B2B offering to cater to the fast-growing market of new mobility services, such as ride hailing, ride sharing, car rental and scooter sharing. With its usage-based model, fleet owner customers only pay a premium that reflects the number of miles the vehicle actually covers, with those that are inactive only required to pay a base subscription rate.
“We have big plans for the European market and by securing this license, we now have the freedom to continue expanding into new territories and providing new EU-based customers with smart, data-driven insurance,” commented Nick Pester, general counsel at Zego.
“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.”
After evaluating a number of EU jurisdictions, Zego opted for a Dutch insurance license due to the similarities between the Netherlands’ and UK’s regulatory systems. In addition, the company said, the Dutch regulator, AFM, “is highly supportive of technology companies.”
The award of the licencs comes just one week after Zego announced the acquisition of Portugal-based telematics app Drivit. Zego said the deal will help it “disrupt the insurance industry with a new, fairer pricing model based on individual real-time driver behavior data.”
Zego has raised $65 million in funding and was the first UK insurtech to be awarded an insurance license in 2019.
- UK Insurtech Zego Buys Telematics Firm Drivit to ‘Revolutionize’ Insurance Pricing
- UK Insurtech Zego Partners with 2 Independent Broker Networks to Expand Fleet Offering
- Insurtech Zego Partners with E-Scooter Firm, Ginger, to Insure 1st UK E-Scooter Trial
- Insurtech Zego Expands Partnership with RSA to Provide Cover for UK Van Fleets
- Startup Zego Becomes 1st U.K. Insurtech to Get Insurance License
Was this article valuable?
Here are more articles you may enjoy.