Sompo Partners with Zego, Joining $28M Funding Round

Sompo Holdings, Inc. (Sompo Holdings, TSE: 8630), one of Japan’s largest insurance groups, and Zego, one of the UK’s leading digital motor insurers, today announced a strategic partnership to explore and develop telematics-based insurance products for the Japanese market.

The announcement coincides with a $28 million (approximately £20.6m) funding round, with Sompo Holdings investing alongside Zego’s existing investors. The breadth of support reflects a strong conviction in Zego’s AI-first platform and the value it delivers to customers.

The partnership brings together Sompo Group’s deep insurance expertise and market knowledge with Zego’s cutting-edge technology platform, and AI capabilities. By combining these strengths, the two companies aim to jointly advance the development of tech-enabled telematics insurance and AI-led solutions.

The initiative reflects both companies’ shared belief that data-led, usage-based insurance is intended to deliver meaningfully better outcomes for customers: rewarding safer driving, with the aim of improving road safety, and enabling fairer, more personalised pricing.

Katsuhito Nakagawa, Senior Vice President, 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, CEO of Zego, 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.”

For Zego, Sompo Group’s investment further underscores the company’s push into the consumer motor insurance market, where it is already breaking new ground in the UK. Zego is among the first motor insurers in the UK to offer rewards for good driving through Zego Rewards, providing tangible benefits to safe drivers throughout their policy. The partnership with Sompo represents an opportunity to bring this unique, customer-centric telematics proposition to a new market, reinforcing Zego’s position as a leader in technology-enabled motor insurance.