Zego, the insurtech specialising in flexible insurance for gig economy workers and commercial fleets, has received full authorisation from the Prudential Regulation Authority to operate as a licensed insurer in the United Kingdom. The licence, granted in May 2025, allows Zego to underwrite policies on its own balance sheet for the first time, a significant step that reduces its dependence on third-party capacity providers and should materially improve the company's unit economics.

The timing is significant. The UK gig economy now encompasses an estimated 7.2 million workers, according to figures from the Department for Business and Trade, and demand for flexible, usage-based insurance products has grown in lockstep. Zego's platform currently provides cover to more than 200,000 drivers and riders working for platforms including Deliveroo, Uber, and Amazon Flex. CEO Sten Saar told FinBlockDaily that the licence would enable the company to launch new products within weeks rather than months. "Every time we wanted to iterate on pricing or coverage, we had to go through a capacity partner. That friction is now gone," he said.

Analysts view the move as part of a broader maturation trend among UK insurtechs. Several startups that began as managing general agents are now seeking to control the full insurance value chain. "Vertical integration is the natural evolution for insurtechs that have proven their models," said Matthew Jones, a partner at Deloitte's insurance practice. Zego reported gross written premiums of £185 million in 2024, up 38 per cent year-on-year, and is targeting profitability by the second half of 2026.