Usage-based insurance provider Zego is targeting corporate fleets and logistics operations with pay-as-you-go insurance that could cut costs and bring a more transparent approach.
Although the business – which was founded in 2016 – has initially focused on offering pay-as-you-go cover for delivery drivers in the gig economy, it says the benefits of such an approach, including improved operational efficiency and a simple insurance experience, have equal merit for more traditional fleet operators.
Zego’s work to evolve its insurance solutions has already seen it expand from the gig economy into the B2C sector, including with car subscriptions and on-demand car hire providers. It signed partnerships with Drover, Splend, Weflex, European e-scooter sharing firm Dott and Engineius in 2019.
But the business, which is reinsured by Swiss Re, says fleet is its third target market as it expands its focus from the B2C sector to also take in B2B for 2020, backed by the provision of ‘Insurance as a Service’ and a user-friendly inhouse-developed fleet management portal along with claims handling provided by well-known names including Broadspire and Crawford.
According to Christen Smith, Head of Fleet Sales & Distribution – UK, Zego’s benefits to fleets are not just centred around pay-by-the-minute or mile insurance – although this could bring key savings for some operators – but also in using data and technology to deliver fairly-priced and transparent insurance.
“Looking at the market we realised that with an annual policy, often companies have to pay a large sum at the start of the policy, and then the only communication they have with the insurer is when the policy renews and your insurer tells you that your premium is increasing due to poor claims experience,” she outlined.
“With our usage-based product there is no bulk up front payment. And with our portal, we help you manage your claims experience before the premium is impacted. There are no more nasty surprises at renewal. The fleet manager is more in control of their insurance.”
The approach is being offered to both car and van operators – as well as small and large businesses.
Further developments will also see Zego expand into carrying risk itself. Although the business was founded as a broker and has a growing network of insurer partnerships, it recently secured its licence to underwrite insurance in the UK – the first to ever be awarded to a UK insurtech – enabling it to move into building and selling its own products and therefore ensuring it can be much more innovative with pricing.
It’s an innovative approach that the company will be highlighting to operators attending tomorrow’s Great British Fleet Event – taking place 30 January 2020 at Novotel London West – where Zego will be talking to attendees about what it does and its proven concept with all different types of business customer.
To sign up for free to attend the Great British Fleet Event – which also includes a comprehensive conference programme and the awards lunch and afternoon ceremony, click here.