Zego becomes first UK insurtech firm to secure European broking licence
Zego, the UK’s new mobility insurance provider, has become the first UK insurtech to secure a European broking licence.
Awarded by the Dutch regulator AFM, the licence provides a foundation for the company’s continued expansion across Europe, enabling it to work with EU-based insurance partners and customers, and establish itself in new territories without friction once the Brexit transition period ends on 31st December 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. Securing the European licence will not only ensure that business can continue as normal in these key markets, but also enable the company to enter new territories during 2021, as well as expanding its team servicing those markets.
With Zego’s EU future now on firm footing, it is perfectly placed to capitalise on Europe’s fast-evolving fleet and new mobility market, by providing businesses and private hire drivers with transparent, usage-based and data-driven policies, saving them time and money compared to local, traditional insurers.
Nick Pester, general counsel at Zego, said: “We have big plans for the European market and by securing this licence, we now have the freedom to continue expanding into new territories and providing new EU-based customers with smart, data-driven insurance. 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 licence with AFM due to the similarities between the Netherlands’ and UK’s regulatory systems, and the fact that AFM is highly supportive of technology companies. The award of the licence comes just one week after Zego announced the acquisition of Portugal-based telematics app Drivit, a deal which will help the insutech to disrupt the insurance industry with a new, fairer pricing model based on individual real-time driver behaviour data.
