Zego acquires telematics pioneer Drivit to revolutionise the insurance industry
Written by Benedict Harrison
We’re delighted to announce that Zego has acquired pioneering telematics company, Drivit, as we aim to revolutionise commercial motor insurance. The acquisition of Drivit will help us collect real-time driver behaviour data in-house, so that we can continue to save our customers time and money with insurance products designed for the 21st century.
This deal comes several months after we selected Drivit as a partner over many of its competitors, when we initially tested and launched our telematics-based policies. We are pleased to say that the Drivit team, who are based in Portugal, will be fully incorporated into Zego, just as their market-leading technology is already embedded into the Zego Sense app, which we launched recently.
The incorporation of Drivit’s technology will enable us to revolutionise the way commercial motor insurance policies are priced. Traditionally, insurers have worked out the cost of insurance based on factors such as a person’s demographic profile, their vehicle information and driving history. Others have been able to take a step beyond looking at factors that are distant proxies for a person’s risk, combining these with telematics-based driver behaviour too.
However, through our continuing integrations with work providers, we are able to price policies based on traditional factors, driver behaviour and data regarding an individual’s working habits. Overall, the information we can collect amounts to five times more data per vehicle than our competitors. By acquiring Drivit’s telematics technology, and by linking this up with its existing data sources, we have taken a significant step towards understanding driver data and risk better than anyone else globally.
Sten Saar, CEO and Co-Founder of Zego, said:
“At Zego, we want to revolutionise the way that commercial motor insurance is priced, and I believe that this acquisition is an important step towards achieving this goal. Owning a market-leading telematics solution gives us the ability to not only collect real-time behavioural data, but also crucially to layer this information on top of our other existing data sources.
A data-centric approach is key to Zego’s strategy going forward and the acquisition of a pioneering telematics company like Drivit will help us to lay the foundation for future innovation and disruption in the industry.”
Gonçalo Farinha, Co-Founder of Drivit, explained:
“Drivit was created to untangle the constraints of existing telematics technologies, helping car insurers to develop a new breadth of products and services that use driving behaviour and contextual data to cater to the specific needs of each driver.
We are embarking on this journey with Zego not only because its mission perfectly aligns with the role we envisioned for Drivit in the world, but also because it is uniquely positioned to dramatically accelerate this shared vision into becoming a reality.”
Through an enhanced and more sophisticated understanding of risk, we can offer policies that are more personalised to our customers, empowering both businesses and individuals to save time and money, as well as financially incentivising safer driving. As we continue to scale and expand into new products, markets and territories, this acquisition will act as a springboard helping us to do so faster than ever before.