“Claims Can Take Long Time to Process” Says New Startup

London-based pay-as-you-go insurance provider, Zego, announced it has raised £6M in a Series A round led by Balderton Capital, bringing its total funding to date to ~$10M .

The mobile-first startup, established in 2016, is on a mission to offer “a people-first policy”, with coverage that can be turned on or off. “Zego provides hardworking drivers with the tools to make gig economy jobs work for them. Before we came along drivers who wanted to work flexibly and part-time were ill-served by the insurance industry and were forced to pay for insurance cover they did not use” – CEO Harry Franks.

Wait, there’s more. Zego offers scooter or car insurance for food and courier delivery drivers starting at £0.55 or £1.15 per hour, respectively. Its pay-as-you-go coverage is available for anyone between the age 21-65. It doesn’t handle claims, but rather redirects policyholders to their underwriter – be it Aviva, Antilo or Markerstudy (for policies purchased before July 24, 2017). To mitigate fraud, Zego takes a £150 admin fee that is chargeable in the case that a Zego driver caused an accident that is a result of reckless driving. Last, “Claims can take a long time to process as there are sometimes numerous parties involved.”

Bottom Line: insurtechs come with fine print, too .

PS. This is Antilo, an MGA established in 2014 to focus on niche car insurance products.