It will allow the insurtech to offer a combined telematics and usage based insurance policy to fleets
Insurtech Zego has partnered with global telematics firm ABAX in a bid to drive down the cost of insurance for fleet owners influenced by changes in demand during the pandemic.
This means that the insurtech can offer businesses a combined telematics solution and usage based insurance policy, and that fleets will only pay for the amount of time their vehicles are on the road or the distance they cover allowing them to save money.
Don McCormack, chief of staff, Zego said: “The partnership between ABAX and Zego represents a significant opportunity for both businesses, as well as the customers we serve.
“The relationship with ABAX will enable Zego to scale its flexible fleet insurance solutions at a faster pace, and continue to bring fairer pricing to our customers at a time where aligning costs with their revenue stream is more important than ever.”
The telematics solution will also let fleet managers track their vehicles and monitor driver behaviour, giving them valuable insight into the performance of the entire fleet.
Zego claims it will also help fleet managers to keep fully compliant tax records that prove that vehicles have only been used for business purposes, eliminating the threat of extra tax charges.
The insurtechs fleet customers pay a minimum base rate for the policy, with a flexible top-up premium that is calculated based on how much the fleet’s vehicles are used. No matter how many miles are covered, customers will never pay more than the agreed monthly cap.
Morten Strand, chief executive at ABAX, said: “The world of business and commerce has been changing rapidly for some time, although no-one could have foreseen the impact of Covid-19, which has both accelerated the change, and pushed businesses into some interesting, and challenging new directions.
“To survive, businesses must adapt, and embrace new and innovative ideas.”
ABAX is a European telematics company that allows businesses to utilise data to enable better management of their fleets of cars, trucks, and vans.
Craig Allan, strategic partnerships manager, ABAX said: “I am extremely excited to be working in partnership with Zego. We have started to see joint customers already, which is fantastic. I am looking forward to working together to develop this partnership and explore new Solutions in different verticals.”
Zego was founded in 2016 and provides a range of flexible B2B insurance models for fleet businesses and new mobility services, such as car sharing and car leasing.
This includes WeFlex, Splend and Drover. It currently insures a large portion of the UK’s delivery and ride-hailing workforce, partnering with companies including Uber and Deliveroo.
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