A leading insurance technology platform in South Korea, Carrot General Insurance Corp. (“Carrot” or the “Company”), has announced that it has sold more than 500 thousand policies for its flagship pay-per-mile usage-based (UBI) auto insurance program. Having achieved such rapid growth two years after launching the product, this milestone is viewed as highly significant, especially in the sphere of UBI, where such momentum is seldom seen.
Carrot’s innovation continues to be underpinned by its focused R&D efforts around insurance technology, with its recently introduced safe-driving incentive algorithm being one example. Using proprietary driving data analytics, Carrot monitors driving performance and provides drivers with personalized scores based on the key risk indicators.
REWARDS SEEM TO WORK
The algorithm integrated in-app competition challenge that reward drivers with cash points in exchange for safe driving have been shown to be effective, as score-conscious driving resulted 70% reduction in accident frequency. Moreover, during a recent study conducted by Carrot with 100 thousand customers revealed that the drivers with scores of 70 and above incurred less loss amount (loss ratio) and severity level by 18.2% and 25% respectively compared to those with scores of below 70.
According to Carrot, personalized identification of driving episodes with feedbacks and financial incentives will benefit society economically and environmentally since there will be fewer crashes, costs, and emissions, thus becoming eco-friendly.
“Following two years of substantial growth, we are delighted to have reached this meaningful milestone, which further validates our commitment to innovation and value that we create for the people and society” said Paul Jung, CEO of Carrot. “This is only the beginning for Carrot. We will keep push forward to offer customers modern insurance experience through the use of technology.”
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