than minimum wage, so cheaper and more flexible insurance options — that they only have to pay for when working, for example — are likely attractive alternatives. And as a licensed insurer, Zego also has greater control over pricing and can leverage its tech capabilities to price policies according to a customer's true level of risk — by looking at driving behavior, for example.
The US already boasts several insurtechs operating as carriers, and incumbent insurers should take note of this trend. While Zego is the first licensed UK insurtech, this is a trend we've already seen proliferating in the US: Unicorns Lemonade, Oscar Health, Clover Health, and Root all operate as carriers, and of note, Lemonade also recently got licensed in the Netherlands for its European expansion plans. raised $47 million as it plans to become an insurance carrier.