UK insurtech company Zego has acquired Portuguese telematics startup Drivit to up its data game. The terms of the deal were not disclosed.
Telematics is the combination of telecommunications and informatics (computer systems), and is largely employed in cars, especially commercial fleets, to capture data. The data can include location, idling time, sudden acceleration or braking, fuel consumption, maintenance needs and more.
Drivit collects exactly that in real time. The Lisbon-based startup has been a ‘longterm’ partner of Zego, and now its team will be fully incorporated into the new company. In fact, its technology is already embedded into the Zego Sense app.
The British insurtech company says it wants to revolutionise how commercial motor insurance policies are priced. While most insurers traditionally price based on factors such as age and vehicle type, Zego adds in data about driver behaviour,and working habits. Overall, the information Zego can collect amounts to five times more data per vehicle than its competitors, the company claims.
Zego closed a $42 million round led by Target Global back in summer 2019.