Safe drivers can get up to 20% off their insurance premium
through behavioral-based insurance
- Carrot launched a behavioral-based insurance on May 30, offering up to a 20% discount on premiums
for policyholders who drive safely.
- Over the past years, Carrot has collected data from 1.5
million customers, analyzing 7.4 billion km to derive driving
scores.
- There have been only two exclusive rights in the auto
insurance category since the 2020s, both involving Carrot.
- Carrot provides discounts and reimbursements based on
driving score achievements and has praised for its originality and
progressiveness.
SEOUL,
South Korea, Aug. 5, 2024
/PRNewswire/ -- Carrot General Insurance Corp ("Carrot"), Korea's
first and largest full-stack digital insurance platform, announced
that it has acquired the exclusive right to use for
behavioral-based insurance (BBI) for six months from the General
Insurance Association of Korea.
This achievement is significant as it marks the first time in
four years and four months that an exclusive right has been granted
in the auto insurance category among all property and casualty
insurers. Auto insurance, a compulsory product sold by 12 general
insurance companies, is typically standardized with minimal
differentiation. Therefore, exclusive rights for auto insurance are
rare. Since the early 2020s, only two such rights have been
granted, both to Carrot.
Carrot has pioneered an industry-first system that offers
discounted benefits to all customers, regardless of their safe
driving score in the past. The system calculates monthly safe
driving scores and provides reimbursements based on the number of
safe driving achievements during the insurance period. The New
Product Review Committee of the General Insurance Association of
Korea highly praised the originality and progressiveness of
Carrot's new system and service, granting an exclusive right to use
it for six months.
Over the past four years, Carrot has accumulated driving data
from approximately 1.5 million customers through its Per-mile auto
insurance and successfully derived driving scores by analyzing 7.4
billion km of driving data. It has been highly rated for motivating
safe driving during the insurance period and providing personalized
feedback to help customers monitor and improve their driving
habits.
Since Carrot launched a behavioral-based insurance on
May 30th, the accident
rate for customers who achieved a safe driving score using Carrot's
BBI auto insurance – defined as a monthly safe driving score of 70
or higher and a monthly minimum driving distance of 100km - was
recorded at 12% for the month of June. This rate is notably lower,
considering that the average industry accident rate for each June
from 2019 to 2023 generally ranges from 15% to 17%.
Kevin Yang, Director of Carrot's
Mobility Division, stated, "We believe that the acquisition of the
exclusive right to use is the result of the efforts of all
executives and employees to realize the value and vision that
Carrot pursues." He added, "We will continue to work hard to create
more innovation in the insurance industry in line with Carrot's
founding purpose of expanding insurance choices and benefits for
customers."
Meanwhile, the exclusive right is effective for six months from
the date of approval. Carrot has been offering the behavioral-based
auto insurance product since May
24.
[Appendix: Company Information]
Based in Seoul Korea the
company was established in 2019 through a JV partnership with some
of the big-name investors, including Hanwha, SK Telecom, Hyundai
Motor Group, Altos Ventures, STIC Investments. Being the nation's
first fully-licensed 100% digital insurance carrier, Carrot has
been disrupting the market with innovative products and has
outpaced its global peers in terms of the speed of acquiring
customers to its usage-based insurance program. The company's
successful footprint owes itself to strong customer value
propositions, including easy and accessible insurance, transparent
premiums, AI automated accident registration and prompt dispatch of
help services all made possible via proprietary technology. Until
early July 2024, the company has
written over 2 million auto insurance policies and distributed
different types of protection products through cross-selling and
embedded insurance platforms. The company is pursuing business in
behavioral-based auto insurance, which assesses the premiums as per
customer's driving patterns and behavior through sensor data
analytics to better manage risks of policyholders. Carrot has
various national & international partnerships, including
Hyundai Motor Group, Tmap Mobility, and Naver. Carrot aims to
expand its data-driven products beyond auto insurance to include
non-auto insurance such as pet, driver's protection, and home,
evolving into a data-driven holistic care & lifestyle platform
in the future.
In August 2022, Carrot has
successfully closed the series A funding of 175B KRW led by private equity firm Affirma
Capital. Recently in December 2023,
the company has secured additional 130B
KRW. Carrot's spokesperson has stated that the fund will
accelerate its sophistication of in-house technologies and open
innovation activities to keep the J-curve growth at an even faster
pace.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/south-korean-insurtech-carrot-has-acquired-the-exclusive-right-to-use-for-bbi-behavioral-based-insurance-302213352.html
SOURCE Carrot General Insurance