Zego, an insurtech based in the UK, is set to expand into several new countries in a growing European market in 2022. According to GlobalData forecasts, the European commercial motor insurance market looks set to grow to $11.61 billion by 2025, offering good growth opportunities to the commercial insurance specialist.
In its short existence, Zego has grown itself into an established and disruptive insurtech. After insuring its 200,000th vehicle in December 2020 (across the UK, Belgium, France, and Spain), it became the UK’s first insurtech unicorn in March 2021, having raised $150m in funding to reach a valuation of $1.1bn. Zego’s expansion into further European countries provides an excellent opportunity for the firm to continue its growth.
Go deeper with GlobalData
The commercial motor market across Europe has somewhat benefited from the COVID-19 pandemic, with increasing demand for home deliveries raising the need for commercial vehicles and policies. Zego estimates that around 13% of vehicles on UK roads are commercial vehicles, the highest proportion ever recorded. With fuel prices becoming an ever-increasing problem for fleet managers across Europe, usage-based insurance (UBI) and telematics policies such as those offered by Zego offer a valuable opportunity for fleets. According to Zego, UK fleet operators have been able to save up to 30% on premiums by using one of its offerings to encourage safer driving. The popularity of telematics devices has grown over the past few years, particularly in commercial vehicles. GlobalData’s 2021 UK SME Insurance Survey reports that 33.0% of SMEs with a commercial motor insurance policy hold a form of UBI policy, with another 18.6% considering this type of policy.
The European motor insurance market is dominated by large conglomerates that have benefited from the tightening of the overall motor insurance market during the pandemic. Many smaller firms have lost business as they may not have been able to absorb the losses in the market amid the pandemic’s peak. For example, the Dutch market has consolidated since the start of the pandemic, with smaller providers exiting the market. This trend has been mirrored in other European countries, making the European motor market prime for disruption, as insurtechs continue challenging incumbents to update and modernize insurance practices and processes. As one of Deloitte’s fastest-growing tech companies of 2021, Zego’s business model may well stand it in good stead as it looks to continue on its journey.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
