UK digital motor InsurTech Zego has secured $28m (approximately £20.6m) in a new funding round, with Japanese insurance giant Sompo Holdings joining existing investors as part of a wider strategic partnership between the two firms.
The two companies will use the tie-up to jointly explore and develop telematics-based insurance products tailored to the Japanese market. Sompo Holdings participated in the funding round alongside Zego’s existing backers.
The collaboration is underpinned by a mutual belief that data-led, usage-based insurance can produce meaningfully better outcomes for policyholders. Both companies see the approach as a way to reward safer drivers, advance road safety, and introduce more personalised and equitable pricing models.
The deal brings Sompo Group’s local insurance expertise and market knowledge together with Zego’s technology platform and AI capabilities to push forward the next generation of telematics 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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