Insurtech Zego set to lead UK micromobility movement as COVID-19 pushes e-scooter trials, says GlobalData

Insurtech Zego has become the first insurer to announce a partnership with an e-scooter company for the UK’s first e-scooter trial, which highlights the greater potential for insurtechs in this emerging market, according to GlobalData, a leading data and analytics company. The market is expected to see a surge in demand as consumers look to avoid crowded commutes during the pandemic.

Findings from GlobalData’s report, ‘Thematic Research: Sharing Economy in Insurance’, highlights that riders using e-scooter rental platforms under the current business model are liable for any damage or harm caused by their use of the e-scooter. With its partnership, Zego is providing third-party liability insurance, but despite offering such coverage, legal interpretation remains vague for cases that could arise from e-scooter accidents. Lack of a clear legal mandate could lead to the insurtech taking on greater risk, as the ruling of e-scooter cases and claim costs it could incur are unclear.

GlobalData insurance analyst, Jazmin Chong, commented: “It is expected that insurtechs will lead the way in the UK’s untapped e-scooter market and will be more inclined to take on risk with the new micromobility models. This is especially the case as conventional insurers are currently more budget-cautious due to the challenging claims landscape that the COVID-19 pandemic has created for the industry.

“Beyond not wanting to take on greater risk, conventional insurers tend to be more complacent with their product offerings. Going forward, insurtechs are expected to play a greater role in untapped markets, as larger insurers will be squeezed with greater financial pressures. Zego’s e-scooter coverage demonstrates the insurtech’s ability to create new product offerings for the rapidly changing market environment in the era of COVID-19.”

Find out more by emailing your questions to Rebecca Panks, PR Executive at GlobalData (

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