Sompo telematics policy will offer cheaper cover to safe drivers
A Sompo Japan Nipponkoa Insurance policy that will offer drivers discounts for safer driving is to become the latest entrant to Japan's nascent telematics-led motor insurance sector. The company will issue policyholders with a smartphone app called Smiling Road that can monitor how they drive and will price insurance accordingly, with the best drivers receiving a discount of as much as 20% when buying a car. The product is aimed mostly at younger drivers who don't yet own a car. The app already has more than 100,000 users.

TOKYO -- Sompo Japan Nipponkoa Insurance will introduce a type of automobile policy this year that offers discounts based on driving data captured by a smartphone app.

So-called telematics insurance policies are more prevalent in Europe and the U.S. than in Japan, where driver ratings based on accident history determine premiums.