London-based insurtech Zego has partnered with WeFlex to provide its 700-strong fleet with a first-of-its-kind insurance policy, driven by real-time data.
The deal redefines the way that insurers and fleets can work together. Rather than an annual premium, often based on arbitrary measures, WeFlex receives a tailor-made pricing model which Zego produces by analysing every aspect of the fleet and its drivers’ historic behaviour. This gives WeFlex a far deeper understanding of its own fleet, improving decision-making when it comes to resource distribution and long-term risk, while ultimately reducing accidents and their associated costs.
Zego was founded in 2016 and its flexible, usage-based products are already having a huge impact with self-employed delivery and transport workers in the UK. The company’s fleet policy works on a base subscription rate per month, with fleet owners paying a mileage rate on top of this.
Data is collected from telematics (or ‘black’) boxes, in real time. This gives WeFlex in-depth insight into the behaviour of its customers, so it can better understand risks and improve safety standards across its fleet. This model also offers far more transparency during each stage of a claim process, which Zego will manage.
For WeFlex, as a provider of vehicles to platforms including Uber, the deal is a major step in its expansion plans for 2019. By having more control and understanding of its fleet, the company hopes to feed this insight into its long-term make strategy.
Sten Saar, Chief Executive of Zego, said: “In the last few years, we’ve seen a flood of innovation across the transport and delivery sectors and so far the insurance industry has failed to keep pace. This is particularly so when it comes to insuring fleets of cars, with traditional insurers often adopting a one-size-fits-all approach, which fails to take account of actual exposure to risk on a real-time basis.
“With our fleet policy, we’re using technology to analyse billions of data points and provide a tailor-made product which allows fleet owners to see the big picture. We see this deal as a huge step in our move towards the B2B market.”
Nicko Williamson, CEO of WeFlex said: “We have chosen to partner with Zego as they are an innovative player in the insurance market, allowing WeFlex to have a much more data driven, flexible approach to insurance.
“WeFlex plans to become the largest vehicle leasing business in the ride sharing space and working with Zego will help us improve our product offering. This in turn will help our customers and enable us to scale our business”.