Japanese insurance giant Sompo has launched a new insurance product based on the technology of Israeli company Parametrix Insurance, to insure e-commerce stores on platforms such as Yahoo! Shopping, Shopify and Amazon.
Parametrix is the market leader in insurance policies in the event of cloud-based crashes or downtime. The startup which raised $17.5 million earlier this month from FirstMark Capital, and F2 Ventures, was founded two years ago and has more than 30 employees in its offices in Israel and around the world. The company offers its insurance products in Israel, the US, and Europe and now the collaboration with Sompo is expanding operations to the Japanese market as well.
Parametrix has developed innovative technology, which continuously monitors many third party systems such as cloud computing, Internet service providers, customer relations management systems, e-commerce services, and digital payment means. This system provides precise alerts about the timing of downtime and the type of services that have collapsed, as well as providing the data required so that the company can produce inexpensive policies, based on parametric models. Parametric allows rapid provision of insurance indemnity, without the need for a claim clearing process, and which is adapted to the needs of the customer, in terms of the level of the coverage.
The collaboration between Parametrix and Sompo has been led by Sompo's innovation center in Tel Aviv, which leads investments and collaborations with Israeli companies in the fields of transport, digital health services, cyber security and insurance services.
Sompo Digital Lab Israel head Yinnon Dolev said, "The Covid pandemic created a challenge for us because of our inability to meet face to face with the startups. Despite the difficulties, we led the project solely through Zoom meetings, with both sides focusing on the aim of providing an insurance solution for the digital world in Japan. We are delighted about the start of the collaboration with Parametrix, which will allow us to adapt our raft of products to the changing digital world."
Parametrix cofounder and CEO Yonatan Hatzor added, "The collaboration with Sompo represents a foothold and our first entry into the Japanese market. We are glad of the opportunity to cooperate with Sompo's innovation lab in Israel and to move forward with the digital transformation in the overall insurance services offered by the company."
Published by Globes, Israel business news - en.globes.co.il - on June 13, 2021
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