#Japan #Tokyo #Disaster Recovery #SOMPO Holdings #Speee

Speee and SOMPO Holdings Form New Joint Venture

In a move set to transform the disaster recovery landscape, Speee Inc. and SOMPO Holdings, Inc. have entered into a foundational agreement to establish a new joint venture. This collaboration aims to alleviate customer concerns and burdens during natural disasters while promoting robust development within the remodeling industry. By targeting the establishment of a new industry standard characterized by trust, transparency, and speed, both companies are poised to define a better future in home repair services.

Background of the Partnership

The aftermath of natural disasters often leaves many homes damaged, leading to significant time and effort required in coordinating repairs. Moreover, there have been alarming increases in fraudulent practices, such as deceptive insurance claims and predatory service providers exploiting victims of disasters. To tackle these pressing issues, Speee and SOMPO Group's core entity, Sompo Japan Insurance, formed a partnership back in December 2022 to introduce the "Minna no Repair" service. This platform connects users with trustworthy repair services, allowing for peace of mind in selecting the right contractor. The nationwide trial initiated in 2023 has already shown promising results, proving effective in rapid recovery support and ensuring accurate insurance claim processes.

Vision for the New Joint Venture

Recognizing the necessity for a comprehensive system that arranges reliable repair service providers swiftly in times of crisis, Speee and SOMPO have decided to escalate their business partnership into a full-fledged joint venture. By merging Speee's wide network of remodeling contractors in their DX business with SOMPO's customer base, they aim to address inherent challenges like information asymmetries and contractor disputes which have long plagued the remodeling sector. This collaboration will strive to ensure fair compensation for service providers while enhancing the overall quality of work to elevate customer satisfaction across the industry.

Moreover, this initiative aligns seamlessly with the "HIKESHI DNA 2030 Project" promoted by Sompo Japan, which seeks to transform traditional insurance roles. This project transcends conventional insurance support by not only ensuring quick disbursement of funds but also providing continuous assistance throughout the recovery process.

Overview of the New Company

Under this agreement, Speee will undertake a corporate split and transfer its remodeling DX business operations to the newly established company, with SOMPO Holdings contributing capital to support this startup. The remodeling DX initiative encompasses a range of services, including the outstanding disaster recovery service "Minna no Repair," a platform for finding exterior painting services called "Nurikae," the plumbing comparison site "Rifosumu," and a sales support application known as "Budii."

Expected Services

The joint venture is set to provide:
1. A matching platform connecting remodeling service providers with customers directly.
2. Development and provision of productivity-enhancing products for remodeling companies.
3. Introduction of reliable repair contractors to customers affected by disasters.

Strategic Objectives

The company aims to build a national network of high-quality repair contractors who can respond to both everyday needs and significant natural disasters. The swift introduction of reputable service providers aims to streamline insurance claim processes while eliminating fraudulent activities.

Timeline Ahead

Looking forward, the following timeline has been sketched out:

• - March 31, 2026: Signing of the fundamental agreement (non-binding).
• - End of May 2026: Finalization of a binding contract.
• - By September 2026: Completion of the establishment of the new company and capital increase through third-party allocation.

As this promising collaboration unfolds, stakeholders expect a significant positive impact on the remodeling and disaster recovery sectors, ensuring that homeowners have the necessary support during their most trying times.