NEC Corporation has formed a capital alliance with MOTER Technologies, a California-based insurance software developer, as the century-old Japanese technology company seeks exposure to the rapidly expanding telematics insurance market.
The partnership, which became effective in August, will combine NEC’s facial recognition and video analytics capabilities with MOTER’s vehicle data analysis platform to develop AI-powered claim processing services. Nikkei reported the alliance targets software that analyzes driver data to predict accident risk for auto insurance pricing.
Neither company disclosed financial terms of the arrangement in their joint announcement Thursday. The deal represents NEC’s latest venture into insurance technology through its global innovation unit, following the company’s broader push into startup partnerships across multiple sectors.
MOTER, established in 2021 as a subsidiary of Aioi Nissay Dowa Insurance, secured fresh funding from Japanese trading house ITOCHU Corporation earlier this month. The startup has obtained Managing General Agent certification to provide insurance services across all 50 US states, according to its recent investor presentations.
The alliance comes as the insurance telematics sector experiences substantial growth. The global market was valued at $5.03 billion in 2024 and is projected to reach $19.23 billion by 2032, driven by increasing adoption of usage-based insurance models that price policies according to actual driving behavior rather than demographic factors.
The sector is expected to grow at a 29.6% compound annual rate through 2030, as insurers deploy smartphone-based solutions and AI algorithms to assess risk more precisely than traditional methods allow.
The collaboration will initially focus on developing multimodal AI systems that can automatically process accident data from dashcams and in-vehicle devices, potentially streamlining claims handling for both insurance companies and fleet operators in the competitive US auto insurance market.
