The move marks a notable development, as it is the first exclusive right granted in the auto insurance sector among property and casualty insurers in over four years.
Founded in 2019 in Seoul, Carrot General Insurance is South Korea’s first fully licensed digital insurance carrier. The company was established through a joint venture involving prominent investors, including Hanwha, SK Telecom, Altos Ventures, Hyundai Motor Group, and STIC Investments.
Auto insurance in South Korea is mandatory and offered by twelve general insurance companies, with few distinguishing features between providers. According to Carrot, exclusive rights in this field are rare, with the company having received only two such rights since early 2020.
Carrot’s BBI system, which is the first of its kind in the industry, offers discounts to all customers regardless of their previous safe driving records. The system calculates safe driving scores on a monthly basis and rewards customers with reimbursements for safe driving achievements throughout their insurance period.
The New Product Review Committee of the GIAK praised Carrot’s system for its innovation and forward-thinking approach, which contributed to the grant of the exclusive right. Carrot has amassed driving data from approximately 1.5 million customers through its Per-mile auto insurance program over the past four years. The company has analyzed 7.4 billion kilometers of driving data to generate driving scores, promote safe driving, and provide personalized feedback to enhance driving habits.
The exclusive right took effect from the date of approval, and Carrot has been offering its BBI auto insurance product since May 24.
Carrot Mobility Division director Kevin Yang said: “We believe that the acquisition of the exclusive right to use is the result of the efforts of all executives and employees to realise the value and vision that Carrot pursues.
Yang 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.”
Source: Yahoo News
