2 days ago
- Business
- Irish Independent
Gig economy insurer Zego pulls out of Irish motor market, denting State efforts to increase competition
Promoting competition and market access is a key aim of the Government's latest version of the Action Plan for Insurance Reform. But it has now emerged that UK-based insurer Zego has stopped taking on new business in this market.
The firm specialised in insurance for self-employed drivers, especially taxi drivers, delivery drivers and other gig economy workers.
It is authorised and regulated by the Dutch Authority for Financial Markets, and has a branch office in Ireland.
A notice at the top of its website says: 'We're no longer offering insurance in Ireland.'
From last week it stopped offering new insurance policies for taxis, cars, or scooters as it begins to wind down operations in Ireland.
There was no response to queries to the company from this publication, but the notice on its website says that Zego policies remain active and valid until they reach their expiry date.
'Nothing changes about your cover during this time – you're still protected, just as before,' the company notice says.
The company told policyholders that when their policy expires they will not be able to renew it or get a new one from Zego.
Any funds owed to policyholders will be refunded.
Customers of the insurer will still be able to make a claim, even when it closes down.
A spokesperson for the Department of Finance said both it and the Central Bank were aware that Zego is exiting the Irish market.
'From Tuesday, the August 5, Zego will no longer offer new taxi, car, or scooter insurance policies as it begins to wind down operations in Ireland.
'Existing policies in Ireland stay active and fully valid until they reach expiry date. Existing customers in Ireland can still access information and support through the Zego website,' the department said.
The Central Bank of Ireland said it was aware that Zego intends to cease operations in Ireland. It does not comment on its supervision of regulated entities, it said.
