Zego is looking towards providing cover for electric vehicles within the UK’s ride-hailing market, and GlobalData analysis shows that while it has a small market to target for now, the strategy should pay off in the long run.

GlobalData’s Vehicle Parc Database shows that the market for electric cars is very small at present, as only 0.7% of all cars in the world were electric in 2020. The picture is slightly better in the UK, where the scheme will launch, as 1.2% of vehicles are electric there.

However, electric vehicles is also one of GlobalData’s key themes. This means we have picked it as one of the key trends over the coming years. In the UK, no new cars using any petrol or diesel will be sold post-2035 in the UK, which will force electric vehicles into the mainstream. The sale of new petrol or diesel cars is banned from 2030, while 2035 is the final deadline for hybrid cars.

Zego is partnering with BP and Swiss Re to provide insurance for electric cars in a ride-hailing scheme in the UK. It is designed for professional ride-hail drivers in London, with Zego and Swiss Re looking to make it more convenient for them by providing the correct insurance as soon as the electric vehicle arrives.

This is an ambitious and potentially very successful long-term scheme for the three companies. These changes will have a huge impact on the motor insurance industry in the UK, with electric vehicles requiring different insurance needs and expertise to the more standard petrol or diesel ones. It makes it a significant opportunity for insurers to get ahead of their competitors and establish themselves as experts in the electric vehicle market. This would put them at an advantage as customers increasingly enter the market up to and beyond the 2035 deadline.