Zego, a UK-based digital motor InsurTech, has announced a strategic partnership with Sompo Holdings, one of Japan’s largest insurance groups, as part of a $28m (approximately £20.6m) funding round.
Sompo Holdings participated in the raise alongside Zego’s existing investors, with the round reflecting confidence in Zego’s AI-first platform and the value it provides to customers.
The funds will support the two firms’ joint efforts to explore and build telematics-based insurance products for the Japanese market.
The collaboration brings together Sompo Group’s domestic insurance expertise and market knowledge with Zego’s technology platform and AI capabilities, with both parties aiming to advance tech-enabled telematics insurance and AI-driven solutions. Central to the initiative is a shared view that data-led, usage-based insurance can deliver better outcomes for customers by rewarding safer driving behaviour, improving road safety, and enabling fairer, more personalised pricing.
Founded in 2016, Zego is a pioneering InsurTech offering flexible, data-driven commercial motor insurance.
Sompo Holdings senior vice president of direct insurance business Katsuhito Nakagawa 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.”
Zego CEO Sten Saar said: “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.”
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