Sompo partners with Zego

Sompo International has partnered with UK-based Zego and made an investment in the company to develop new digital auto insurance products in Japan.

Founded in 2016, Zego built its business by offering flexible insurance, mainly for gig economy drivers, where premiums change based on how and how much people drive. It has since expanded into personal auto insurance.

Zego has raised about $281.7 million across eight funding rounds, with its last funding in 2021, including two Series C rounds totaling $230 million. The company has around 360 employees, reflecting roughly 14% growth over the past year.

Zego’s app can track driving using a smartphone, score behavior, and encourage safer driving through rewards and gamified features. It also uses data from more than 50 factors to assess risk and applies AI to handle parts of customer support.

As part of the partnership, the companies will explore bringing Zego’s technology to Japan, building more advanced pricing models, and improving operations. Pilot programs are expected as discussions move forward. The goal is to create a new digital insurance model focused on safety, engagement, and more personalized pricing.