Case Study: Why International Mobility Insurtech Company Zego Chose Gibraltar
“The Gibraltar Financial Services Commission was incredibly thorough, they asked a lot of tough questions to check that everything was in place”
Well-known for a welcoming regulatory environment and close relationships with the United Kingdom giving companies access to the UK market, Gibraltar has always displayed a long-standing commitment to supporting businesses in both the finance, insurance and more recently, the technology sector. This has naturally resulted in an increase in the number of insurtech businesses Gibraltar supports.
One particular company utilising Gibraltar's business friendly model is insurtech company Zego. Zego has been in business for four years and focuses on providing insurance on a flexible basis for drivers working in the last mile delivery space, for companies such as Deliveroo. The company offers insurance products to these customers by mile or by hour basis. By insuring customers based on their driving ability, for example giving good drivers a cheaper and better rate, they display a deep understanding of the needs of their customers. They also recently widened their scope to commercial fleets.
We caught up with Sten Saar, CEO and Co-Founder of Zego, to hear their Gibraltar story.
An open, transparent, communicative approach
According to Sten, one of the main reasons Zego chose to base their company, Extracover Insurance Company Limited, in Gibraltar is because of the friendly, fast paced start-up environment Gibraltar provides. Zego wanted to be able to operate and open up as quickly as they possibly could. Gibraltar provided them with the right conditions for this, as well as an opportunity to work closely with a fast-moving, proactive regulator.
In the fast-growing insurtech industry, companies seek partners they can seamlessly communicate with. In particular, for a new business, the ability to complete a process in as little as six to eight months subject to a comprehensive and professional business plan, rather than 16 months, can be make or break. Gibraltar's ability to provide an open, transparent, and communicative approach to start-ups is attracting worldwide businesses.
Access to the UK Market
Sten says that “access into the UK market is very important for us and for start-ups in general”. Zego has an underwriting team in Gibraltar and a FCA regulated business based in the UK. 92% of Gibraltar’s cross border financial services business is with the UK and approximately one in four UK motor insurance policies are provided by Gibraltar-based insurers. This is evidence of the strong collaborative relationship Gibraltar has with the UK insurance sector.
Zego is one example of a success story accelerated by the benefits Gibraltar has to offer. Gibraltar is looking forward to continuing to support insurtech-focused companies, including those already based there and companies looking to join.