Zego plans for revolution in insurance pricing under Drivit acquisition
Zego is pushing on with its bid to revolutionise commercial motor insurance pricing with the acquisition of telematics firm Drivit.
The usage-based insurance provider – which was founded in 2016 and has its own licence to underwrite insurance – started rolling out its pay-as-you-go insurance to corporate fleets at the start of 2020 and said Drivit would enable it to enhance its mobility insurance services with real-time behavioural data, potentially saving customers both time and money.
Portugal-based Drivit has been a long-term partner to Zego – its technology is already embedded in the Zego Sense app-based telematics solution launched by Zego recently – and the Drivit team will now be fully incorporated into Zego.
By using telematics data as a basis for policies, Zego said it’s able to price policies based on traditional factors, driver behaviour and working habits data – the latter taken from its continuing integrations with work providers.
Overall, Zego says the information it can collect amounts to five times more data per vehicle than its competitors.
Zego will also use this acquisition “as a springboard to scale and expand into new products, markets and territories faster than it ever has done before”.
Sten Saar, CEO and co-founder of Zego, said: “At Zego, we want to revolutionise the way that commercial motor insurance is priced, and I believe that this acquisition is an important step towards achieving this goal. Owning a market-leading telematics solution gives us the ability to not only collect real-time behavioural data, but also crucially to layer this information on top of our other existing data sources.
“A data-centric approach is key to Zego’s strategy going forward and the acquisition of a pioneering telematics company like Drivit will help us to lay the foundation for future innovation and disruption in the industry.”