SOMPO, the second largest property insurance company in Japan, has announced a technology deal with China’s ZhongAn International. Zhong An is one of the major players in enterprise blockchain in China.
The deal comes just a month after SoftBank invested $100 million in Zhong An International to expand into Asia.
SOMPO has prioritized the use of digital technology and set up SOMPO Digital Labs in Silicon Valley, Tokyo, and Israel. The company said that “We are particularly interested in the business model and technology of ZhongAn Insurance that got great success in China, which is a digital developed country.”
The agreement has several aspects. Firstly ZhongAn International will provide SOMPO with the IT insurance platform which includes know-how gained from ZhongAn Insurance. They will also adapt it for the Japanese market.
SOMPO will support ZhongAn International’s expansion in Japan. Specifically, the intention is to promote alliances with e-commerce and sharing services businesses.
Jointly they will explore new business models for the Japanese market particularly for digital transformation.
The target is to create new insurance products and services during the first half of 2019.