The two products are flexible, catering to the surge in delivery and courier services
Insurtech and commercial motor insurance provider Zego has launched two new flexible insurance products for moped and e-bike fleets in the UK.
These new products were developed in partnership with insurance firm Wakam, to enable businesses in the food and grocery delivery market to save time and money.
The aim is that fleet businesses can implement these products rapidly, with the expectation that new policies can go live in under one month or a week, which is significantly quicker than traditional insurers.
With faster implementation times, businesses can start using their fleets sooner - therefore generating revenue sooner. Previously, vehicles might have been off the road for a much longer period, pending insurance.
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 - 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.”
This follows Zego recently raising $150m in series C funding, becoming the UK’s first insurtech unicorn.
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Usage-based insurance
Franck Pivert, chief revenue officer at 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”.
The first new product is specifically tailored towards both electric and traditional moped fleets. It is usage-based, meaning businesses only pay for insurance when they need it.
For example, 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.
Meanwhile, the second new product - which caters for e-bike fleets - is fixed-term annual cover, but is charged monthly to enable businesses to pay at shorter intervals.
This means there is no need for businesses to make a large upfront payment, which can help with cash flow.
Similar to Zego’s moped product, this is priced per vehicle, so that businesses only pay insurance for vehicles that are in use.
Zego was founded in 2016 and is a commercial motor insurance provider that works with self-employed drivers and riders, fleets, car leasing companies and new mobility operators.
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