Sompo Holdings has partnered with Zego to develop telematics-based motor insurance products in Japan, alongside investing in a US$28m funding round.

The deal combines Sompo’s market expertise with Zego’s AI-led platform to advance data-driven, usage-based insurance aimed at improving road safety and enabling more personalised pricing.

The move supports Zego’s expansion into consumer motor insurance, and underlines insurer interest in AI-enabled underwriting models.

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."

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