Zego, the U.K.-based commercial motor vehicle insurance company, is planning a European expansion, the company announced Wednesday (Jan. 19), according to a UKTechNews report.
The InsurTech company, which offers safe drivers as much as 20% off on premiums, has launched in the Netherlands and is expanding operations in France. The company also operates in Ireland, Spain, Belgium and Italy.
Founded by Sten Saar and Harry Franks, former Deliveroo directors, the company reached unicorn status last year when its value exceeded $1 billion. In 2021, the company grew to 637 workers, up from 300 employees in January 2020. In addition, Zego boosted its cash reserves with a $150 million Series C funding round.
Zego’s expansion comes as traditional insurers in Europe consolidate. For example, the Dutch insurance market fell by 9% from 2019 through 2020.
Also in 2020, Zego acquired Drivit, the Portugal-based telematics company, in a deal that will allow the combined company to collect real-time driver behavior data in-house.
“Telematics and data science have proven that they can improve driving behavior, and when combined with a financial incentive, they have great potential to make fleets safer and cheaper to run,” said Saar.
Like other sectors, the pandemic has changed consumers’ relationships with insurance products. While data reveals consumers used insurance less because telecommuters are less prone to accidents and illness, COVID-19 caused those same homebound consumers to place a higher value on medical and life insurance.
Read more: InsurTech, Not The Pandemic, Drives Insurance Innovation
While collection rates increased, attrition rates dropped and response rates for insurance products increased, Franklin Madison’s CFO Preston Porter told PYMNTS in a recent discussion.
“We saw that it’s vital for [insurers] to be able to offer a wide variety of products to their consumers, because their consumers need it and want it,” he said.