Sompo Holdings and Zego have announced a strategic partnership to develop telematics-based motor insurance products in Japan, alongside a $28m funding round backed by Sompo.
The investment, which includes participation from Zego’s existing investors, reflects growing confidence in the insurtech’s AI-first platform and its ability to deliver data-driven insurance solutions.
The collaboration combines Sompo’s market expertise and established presence in Japan with Zego’s technology platform and telematics capabilities. Together, the firms aim to accelerate the development of usage-based insurance products, leveraging real-time driving data to improve pricing accuracy and risk assessment.
The initiative is centred on delivering more personalised and fairer motor insurance, with a focus on rewarding safer driving behaviour and enhancing road safety outcomes.
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.”
Sten Saar 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.”
For Zego, the partnership marks a further step in its international expansion strategy, building on its growing presence in the UK motor insurance market. The company has been among the early adopters of driver reward models, offering incentives for safe driving through its telematics-based products.
Strategically, the deal highlights increasing collaboration between global insurers and insurtechs to scale usage-based insurance models, particularly in markets like Japan where demand for more personalised and data-driven motor cover is rising.
