UK digital motor insurer inks deal with Sompo to enter Japanese market

British digital motor insurer Zego has announced a strategic partnership with Japanese insurance group Sompo Holdings, aimed at introducing a telematics-based motor product to the Japanese market.

The partnership comes shortly after a new private funding round at Zego, with Sompo Group – alongside existing investors – providing $28m (£21m) of capital investment.

Zego said that the new initiative brought together Sompo Group’s “deep insurance expertise and market knowledge” with its own “cutting-edge technology platform and artificial intelligence (AI) capabilities”.

The new offering is set to mirror Zego’s UK proposition, with usage-based insurance aimed at enabling personalised pricing and incentivising better driving.

Shared foundations

Katsuhito Nakagawa, senior vice president of direct insurance business at Sompo Holdings, said: “Sompo Group has long been committed to serving our customers better and improving road safety in Japan.

“By partnering with Zego, we are combining our local expertise and established proposition with world-class technology to push the boundaries of what telematics insurance can offer.

“We look forward to building on our shared foundations and delivering the next generation of motor insurance to Japanese drivers.”

Sten Saar, chief executive at Zego, added: “We couldn’t ask for a better partner than Sompo to test and develop our telematics proposition in Japan.

“Sompo Group’s experience and commitment to telematics aligns perfectly with our own and this partnership is a strong validation of the technology and customer proposition we have built.

“We are excited to work closely with the Sompo Group’s team to demonstrate how data-led, rewards-driven insurance can deliver real benefits for drivers.”