Sten Saar, founder and CEO of Zego, has long harboured a passion for entrepreneurship - a drive that was ignited long before he moved to London in his early twenties.
Originally from Estonia, he began his entrepreneurial journey aged 17, launching a business that sold notepads to students. Despite its niche market, this venture earned a notable $1 million across four countries, all while Saar was pursuing a degree in Business and Management.
While working at Deliveroo during its rapid expansion, Sten Saar identified a critical gap in the market: flexible insurance options tailored for gig economy workers like couriers and delivery drivers. This insight led him to create Zego, focusing on affordable, accessible, and efficient insurance specifically designed for the gig workforce.
By 2026, Zego will celebrate a decade in business, having established a reputation as a trailblazer in insurtech.
The journey has seen plenty of highs and lows – from raising millions in capital and a swift expansion, followed by the global pandemic and then the global economic downturn.
We sat down with Sten to ask a few questions...
You launched Zego in 2016 – almost a decade ago. Looking back on that very first entrepreneurial inspiration that led to the company’s launch, and comparing it with the company today, how does the vision and the reality match up?
The initial idea for Zego came from noticing a real customer problem: motor insurance being too expensive for delivery drivers and riders. While at Deliveroo, we noticed that people couldn’t afford expensive, up-front annual policies, so we set out to offer more flexible pay as you go policies – something no other insurer was doing at the time. We wanted to help drivers by creating an easy to use and affordable product.
From our initial Flex offering, we expanded to other market niches where customer need was biggest, including ride-hailing. By incorporating telematics technology (Zego Sense) we created a new way to decrease the cost of insurance for good drivers.
Our aspiration is now to expand into customer niches (such as Personal Car Insurance for young drivers, new drivers) which are most impacted by rising insurance premiums. At the same time, we are aiming to offer our customers an industry-leading claims and customer experience, enabled again by modern app-based interfaces and tech.
What were the biggest challenges you faced in scaling Zego and how did you overcome them?
Scaling an insurtech like Zego came with its set of challenges, particularly in navigating the complexities of insurance, while shifting from a startup mindset to a mature business without losing our innovative edge. We overcame these by focusing intently on building a solid internal end to end infrastructure — streamlining our claims process and optimising our underwriting practices were pivotal.
"While the average insurer’s expense ratio is around 25%, we’ll be achieving 13-15% in a few years, coupled with a structurally better loss ratio. Achieving this is only possible through technology, especially with the rapid advancements in AI, which will fundamentally transform companies’ cost structures.” - Sten Saar
Now that we have built strong fundamentals, we are well positioned to grow without the need to further increase our cost base. I told the team that we can comfortably double our business without needing to hire any extra team members. I believe that this will put us in a strong competitive position against industry incumbents. We’re aiming to cut our expense ratio to be 50% better compared to large insurers in the market. This will translate into Zego being able to offer lower price of insurance to customers.
Tell us about the company’s funding journey – you’ve raised $282 million to date – a pretty impressive amount. What’s the strategy?
Our funding journey has been strategic, with a large part of the $282 million raised—around 70%—secured in our latest round. Before that, we focused on raising smaller amounts, aligned with reaching key milestones.
Building a technology-first insurance company requires substantial capital for two primary purposes: investing in technology development and meeting regulatory capital requirements for underwriting. For instance, for every £5 we write, we’re required to hold a minimum of £1, so as we grow, our capital needs grow as well.
From day one, we’ve prioritised technology investment. Even today, 20% of our team works in tech. This ongoing commitment to building a strong tech foundation means that over time, we’re creating substantial aggregate value. It’s a long-term investment that demands patience and significant funding, but as we scale, we’re confident that the benefits will be evident—both in underwriting through better risk selection and in an improved expense ratio. We’re on the path to achieving this, and we can see the advantages becoming clearer as we continue to grow.
A significant portion of our funds also supports regulatory capital, ensuring that we’re positioned to underwrite responsibly as we expand.
Fortunately, we’ve timed our funding rounds to align with supportive market conditions, which was a bit of luck, allowing us to secure the capital we need to keep progressing toward our goals.
As a young and successful CEO, what are the most important lessons you’ve learned so far? How have these lessons shaped your leadership style?
I wouldn’t call myself successful – I still have a lot to learn. But over the years building Zego, a few key lessons have really stuck with me:
First, hiring exceptional people is incredibly important, a lesson I learned the hard way. Exceptional people want to work with others of the same calibre – they become talent magnets. And these individuals often deliver ten times the impact of an average person, not just a bit more. I invest a lot of time in finding them; for example, I’m personally involved in 90% of our hiring processes.
"From day one, we’ve prioritised technology investment. Even today, 20% of our team works in tech." - Sten Saar
Second, you need to test your hypotheses as you build the business. Failing fast is crucial. It’s easy to sit on a solution and hope it improves, but if it isn’t working, you have to cut it and move on. This encourages innovation and keeps us focused on growth. Every failed experiment is a step closer to a successful one.
Lastly, think from first principles. If something doesn’t make sense, I ask, ‘why?’ Too often, the answer is, ‘because it’s always been done this way,’ which means we’re doing things for tradition’s sake rather than for real value. Asking questions from first principles and building from there removes the unnecessary and focuses on what truly matters for the customer.”
What advice would you give to aspiring young entrepreneurs who are looking to start their own businesses?
Everyone is going to tell you why it won’t work. I would never have started Zego if I had listened to them. So, my only advice is to just give it a go. What have you got to lose? You’ll become so much more employable after trying and even failing. I’d hire an ex-entrepreneur any day over someone from a more traditional career path. I know the challenges they’ve faced, which makes them more resilient, determined, and driven.
How do you motivate and inspire your team?
I explain my vision in granular detail and keep communicating it repeatedly. I’m here to build the next household-name insurer that saves customers literally millions on insurance, while making the world safer by reducing premiums for good drivers. I genuinely believe in this mission, and I discuss it across the company—in company-wide meetings, team sessions, and one-on-ones. Additionally, we have clear goals that directly connect to everyone’s daily work.
I’m open and transparent, taking any questions in our monthly meetings, and I don’t sit in a separate office on the top floor. I have conversations with anyone in the business, regardless of their seniority – from claims manager to senior engineer. I try to lead in the way I’d want my own leader to, though I’m not certain if it’s the ‘right’ way. But so far, it’s worked.
How do you prioritise building a healthy and positive company culture at Zego when the startup environment is so frenetic?
Building a company is intense and requires immense effort. I compare our culture to a sports team—you have to perform at a high standard to be on the team, and to get on the pitch, you need to play even better. If you and the team collectively play well, we’ll win. If someone chooses not to give their all anymore, then they may not stay on the pitch, or even in the team. We’re not a family; we’re a sports team. This means that for people who want to make an impact and deliver value, Zego is the best place to do so. Our employees win by realizing their ideas, and our customers benefit from vastly improved products.
At the same time, we are committed to providing everything needed for people to succeed—a culture that’s supportive and positive. We make sure our core values, like ‘Zego before ego,’ are deeply embedded in every part of our business.
Ultimately, my goal is that, one day, when our employees are in their 70s, sitting by a beautiful lake telling stories to their grandchildren, they’ll say that Zego was a career-defining experience—a place where they learned, grew, and became who they are.
How do you plan to stay ahead of the competition in the rapidly evolving insurtech industry? What are the key trends and opportunities that you’re focusing on?
We stay ahead by continuously investing in technology and research, and by remaining closely attuned to customer needs and industry trends. Our focus on telematics and AI-driven solutions distinguishes us within the insurtech space. For instance, while the average insurer’s expense ratio is around 25%, we’ll be achieving 13-15% in a few years, coupled with a structurally better loss ratio. Achieving this is only possible through technology, especially with the rapid advancements in AI, which will fundamentally transform companies’ cost structures.”
Looking back on your entrepreneurial journey, is there anything you might have done differently? What valuable lessons have you learned from your experiences?
I think I’ve made more mistakes than I’ve gotten things right, and we could write a very long essay about them. But I wouldn’t change anything — every experience has helped us get to where we are today. Unfortunately, you learn the most from your mistakes. Two valuable lessons I carry with me every day are that focus is everything and speed of execution is above everything else. I have post-its and notes written to remind me of these two principles daily.
What are your long-term vision and goals for Zego? Where do you see the company in the next 5-10 years?
In 10 years, the UK market will know Zego as well as it knows Allianz, Admiral, and Axa combined. We will be the household-name insurer for consumer needs, covering everything from motor to home and more. We’ll be the go-to insurer for all autonomous vehicles on the streets.
In the next 2-5 years, we’ll solidify our position as a leader in the UK motor insurance market by fully integrating telematics into our products and across the entire value chain. Within that time-frame, we aim to build an ‘Admiral for Gen Z.’
We have a lot of work ahead, but I’m very excited about what’s to come.