Zego expands commercial broking network with on-demand policies set to surge in COVID-19-hit market
Zego has partnered with Bravo Group’s broker and compass network, which will allow it to expand its flexible, on-demand insurance to the UK broking community. The partnership will give Zego access to a community of over 700 brokers, which is over 60% of UK brokers, according to the Insurance Times, and therefore offers huge exposure to UK businesses.
According to GlobalData’s 2020 UK SME Insurance Survey, only 12.6% of businesses in the UK had heard of Zego. Therefore, this partnership could introduce the Zego brand to over half of the UK’s brokers, which would be hugely beneficial for the insurtech. For context, our survey also showed that 91.5% of UK SMEs had heard of Aviva.
The need for Zego and a broking network
As one of the leading providers, Aviva will be one of the many players for Zego to compete against if it is to establish a market share for itself. Even though Zego offers a different style of product, it would still need to take business from such established players. Therefore, this increases the importance of building relationships with brokers to improve their routes to customers.
The uncertainty created by the coronavirus pandemic has changed the face of commercial insurance. Many businesses around the country are struggling to get by day to day, which makes long-term planning extremely difficult. This, combined with squeezed profits, and consequently budgets, makes large and long-term commercial insurance contracts extremely difficult for many companies. As a result, on-demand products, such as the ones offered by Zego, are bound to become more common.
Zego was establishing itself before the pandemic, but its digital and flexible insurance, which allows consumers and businesses to switch cover on and off, can be beneficial in the current climate. This new access to such a vast number of UK brokers, and consequently UK businesses, looks to be a very promising deal for the insurtech.