The first new product, tailored towards both electric and traditional moped fleets, is usage-based, meaning businesses only pay for insurance when they actually need it. Businesses pay a minimum base rate to ensure their fleets are always covered, as well as a flexible premium calculated by Zego’s telematics partner, ABAX, based on the distance vehicles cover.
The second new product, which caters for e-bike fleets, is fixed-term annual cover, but is charged on a monthly basis to enable businesses to pay at shorter intervals. This means that there is no need for businesses to make a large upfront payment and makes for a much healthier cash-flow. Importantly and similar to Zego’s moped product, this is priced per vehicle, so businesses only pay insurance for vehicles that are actually in use. Through both of these flexible products, fleet businesses can maintain greater control over their cash flow, and can make significant savings which can then be channelled back into other areas of their business, such as expansion.
In addition, fleet businesses can have these products implemented rapidly, and can expect their new policies to go live in under one month, but potentially in as little as just a week – significantly quicker than traditional insurers. With faster implementation times, businesses can start using their fleets and therefore generating revenue sooner, where before vehicles might have been off the road for a much longer period, pending insurance.
Zego, founded in 2016, is a commercial motor insurance provider that powers opportunities for businesses. This includes self-employed drivers and riders to entire fleets of vehicles, from car leasing companies to new mobility operators.
Zego, which recently raised $150 million in Series C funding and became the UK’s first insurtech unicorn, offers a range of cover options from flexible pay-as-you-go insurance to annual policies and so far, has covered more than 200,000 vehicles in five countries.
Ines Feracci, Commercial Director at Zego, said: “The market for fleet moped and e-bike businesses is growing at a rapid pace, particularly due to the surge in delivery and courier services as a result of the Covid-19 pandemic.
“Zego has already been able to serve this part of the market well, by partnering with a number of fleet businesses and work providers, and this product is an evolution of that work. We recognise the growing use of mopeds and e-bikes by delivery drivers and riders up and down the country, and are pleased that alongside our partners we are now able to provide a far more affordable and fairer insurance model for these businesses.”
Franck Pivert, Chief Revenue Officer of Wakam, said: “We are thrilled to partner again with Zego to create another innovative usage-based insurance product. As new risks and new usages continue to emerge, we believe at Wakam that our mission as an insurer is to accompany these changes by developing innovative insurance products with our distribution partners for the benefit of end-consumers”.
About Zego
Zego is a commercial motor insurance provider that powers opportunities for businesses, from entire fleets of vehicles to self-employed drivers and riders. It combines best-in-class technology with sophisticated data sources to offer insurance products that save businesses time and money.
Since its inception, Zego has believed that the problem with traditional insurance is that it holds businesses back. It’s too expensive and time consuming, and it no longer suits businesses who use vehicles to earn money. Zego’s products represent a solution to this problem for businesses based across the UK, Europe and beyond.
So far, Zego has raised over $200 million in funding and was the first UK insurtech to be valued at over $1 billion. It was also the first to be awarded its own insurance license and recently won Tech Company of the Year 2020.
About Wakam
Wakam is an insurance company that creates white-label, tailor-made and embedded insurance solutions for its distributor partners and clients via its high-tech Play & Plug platform. With a foothold in 13 European countries and turnover of €382M in 2019, Wakam is one of the top 20 P&C insurers in France. In 2020, the company was included on the Financial Times “Europe’s Fastest Growing Companies,” ranking No.1 in the Top 50 largest turnovers – topping all European insurers. Strongly committed to its social engagements, Wakam has become a mission-driven company in March 2021.
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