Shared interest in digital may lead to Sompo and Suncorp alliance
Japanese insurer Sompo has said it is discussing the possibility of an alliance with Australian insurer Suncorp. The two are working towards a strategic partnership after their joint investment in San Francisco's Trov, according to Sompo's Chief Digital Officer, Koichi Narasaki. 

In April this year the Suncorp-backed Trov closed a $US45 million ($59.44 billion) Series D funding round which brought its total funding to $US85 million.

Tinder for insurance

The Trov app has been billed as Tinder for insurance and allows users to turn coverage off or on for items such as iPhone, camera equipment and laptops. The lucrative Millennial market is its focus.

Sompo lead the round with reinsurer Munich Re. At the same time Sompo acquired the exclusive rights to bring Trov to Japan and potentially other parts of Asia.

Mr Narasaki said Sompo was waiting to clear regulatory hurdles before it could officially launch the app in Japan, which will fill a gap in its offering.

"We will target the Millennial generation specifically in Tokyo. They are in their 20s, they don't need a car, and don't need auto insurance," he said.

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"They don't even own their own apartments. They just rent, so the home owners' insurance doesn't work for them."

Suncorp is the latest Australian insurer to build a relationship with a Japanese counterpart.

Last year, Japanese insurer Sony Life picked up a strategic stake in ASX-listed ClearView Wealth, while wealth manager Challenger has formed a lucrative deal with MS Primary, the largest provider of Australian dollar annuities and life insurance products in Japan.

In October last year, the National Australia Bank's completion of the sale of 80 per cent of MLC Life to Nippon Life Insurance Company for $2.4 billion marked another significant milestone in the deepening business relations between Australia and Japan.

Blockchain play

Wealth manager IOOF is also rumoured to be in discussion with Dai-Ichi Life (which owns TAL) as it looked to pick up parts of ANZ Banking Group's $4.5 billion wealth arm.

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Suncorp has also been active in the digital space and has teamed up with a Spanish start-up Traity, which uses blockchain to insure consumers' peer-to-peer online transactions with strangers via a chatbot named Kevin.

Part of the insurer's growth strategy is to offer a broader range of products via a marketplace platform that sells Suncorp-branded products, and also products manufactured outside the business but sold under Suncorp brands.

"We are trying to see if we could get a better outcome partnering with companies or divesting from manufacturing," Suncorp CEO Michael Cameron said.

Despite its burgeoning relationship with Suncorp, Sompo is casting its net widely and said it would be happy to speak to other large Australian insurers.

"IAG is also very bullish about digital. We're not exclusive with [Suncorp]. We would have a partnerships with any good companies," Mr Narasaki said.

Suncorp would not comment on discussions between its executives and Sompo.