Upstream Security has raised $36 million from Japanese carrier Mitsui Sumitomo Insurance as part of a strategic partnership designed to advance telematics in insurance.
Upstream, based in Israel, is built around a cloud-based mobility cybersecurity and data analytics platform built for connected vehicles and smart mobility services. Mitsui Sumitomo is a subsidiary of MS&AD Insurance Group Holdings.
Plans call for using the money to accelerate Upstream’s product development but also support Mitsui Sumitomo’s digital transformation, according to the deal announcement.
The strategic partnership with MSI will ultimately allow insurance companies to use connected vehicle data to gain meaningful insights for various insurance-related areas including improved risk management and enhanced customer experience, the announcement notes.
Auto coverage will be a prominent focus. Yoav Levy, Upstream’s co-founder and CEO, said their partnership will focus specifically on “new data-driven opportunities for both automotive manufacturers, insurance companies, and their customers.” That will specifically involve using automotive telematics data to benefit insurers and policy-holders.
Upstream Security offers a cloud-based mobility cybersecurity and data analytics platform as part of the automotive OEM’s vehicle security operations center (VSOC). Mitsui Sumitomo is leading Upstream’s C-Round as part of a larger investment round that will be announced by Upstream during the 2021 second quarter. I.D.I. Insurance Company in Israel also took part in the investment round. Earlier this year, I.D.I. and Mitsui Sumitomo launched a joint technology hub in Israel.
Masashi Ippongi, a director and Managing Executive Officer at Mitsui Sumitomo Insurance Company, said in prepared remarks that Upstream will help the insurer fulfill its ‘Vision 2021’ business plan, which focuses on improving the customer experience through digitalization, with “higher value and next-gen insurance products, applications and services.”