Japan's Sompo to invest in Australian insurtech firm Cover Genius

30, Sep. 2021

Image by InspiredImages from Pixabay
Image by InspiredImages from Pixabay

SYDNEY, NNA - Japan's Sompo Holdings Inc. will invest in major Australian insurance technology firm Cover Genius Pty Ltd. to expand its digital distribution channel in the embedded insurance market.

Sompo said its Singapore-based wholly owned subsidiary, Sompo Holdings (Asia) Pte. Ltd. (Sompo Asia), will pump $50 million into Cover Genius.

"Cover Genius is a leading digital managing general agent to provide embedded insurance policies for business-to-business-to-consumer," a Sompo official explained the Japanese insurer's decision to make the investment.

Cover Genius operates in more than 60 countries, offering non-life insurance policies for homeowners and companies, insurance programs for fintech firms and banks, and insurance mechanisms for gig workers as well as for logistics, cybersecurity, airlines and other industrial sectors.

It has tied up with such big digital travel platformers as Booking Holdings and Skyscanner.

Sompo has not released Sompo Asia's stake in the insurtech firm founded in 2014.

The Sompo official said Sompo's tie-up with Cover Genius, for example, may enable smartphone buyers on e-commerce sites to join customized insurance policies. Also under consideration are cargo insurance, smartphone insurance and personal cyber insurance policies, the official added.

Sompo and Cover Genius will initially work together in Australia and 13 Asian countries before expanding their joint operations globally. (NNA/Kyodo)