Israeli, Japanese insurance firms join forces to tap into Startup Nation tech

Harel Insurance and Tokio Marine sign accord to jointly pinpoint cutting edge tech in variety of fields including insurance, fintech, health and cybersecurity

By Shoshanna Solomon

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24 July 2019, 5:25 pm

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Shoshanna Solomon was The Times of Israel's Startups and Business reporter

Officials from Harel Insurance Investments & Financial Services Ltd. and Japanese insurance corporation Tokio Marine Holdings Inc. sign accord to join forces in scouting for cutting edge Israeli tech; Ramat Gan, July 24, 2019 (Batia Mor)

Israel’s Harel Insurance Investments & Financial Services Ltd. and Japanese insurance corporation Tokio Marine Holdings Inc. will join forces to identify Israeli startups that provide cutting edge technologies in a variety of fields including insurance, fintech and health.

According to the agreement, signed in Ramat Gan, Israel on Wednesday, the two companies will collaborate in finding technologies products and services in sector, including health, cybersecurity, logistics and improving the customer experience, that can be integrated in the core businesses of the insurers, the companies said in a joint statement.

As part of the deal, Harel will gain access to the “cutting-edge technological infrastructure of Tokio Marine,” the statement said, and the two companies will also share information about processes and the integration of technologies.

Tokio Marine is one of Japan’s largest insurance groups, founded in 1879, and part of the Mitsubishi conglomerate. The firm currently operates in 38 countries, has a market value of some $37 billion, and is looking to innovation and digitalization as growth drivers.

Harel provides insurance and financial services in Israel and internationally. The firm has a market cap of NIS 5.6 billion ($1.6 billion) and had revenue of 14.7 billion shekels in 2018.

“The entry of a Japanese corporation into investments in Israeli hi-tech sectors creates vast potential for Israeli startups and entrepreneurs,” said Michel Siboni, the CEO of Harel in a statement.

Already in the coming months representatives of the Japanese firm will visit to vet Israeli tech, the statement said.

Harel “can bridge us to Israel innovation eco-systems,” said Makoto Okada, from Tokio Marine, in the statement.

Japan is the world’s third-largest economy and is home to some of the largest manufacturing and automotive companies. As the world moves toward digitalization and software, however, these firms are now scouting overseas for tech solutions to help them maintain their edge over global competitors. Israel has become a popular hunting ground for these companies.