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SEOUL, South Korea, March 9, 2022 /PRNewswire/ -- A leading insurance technology platform Carrot General Insurance Corp. ("Carrot" or the "Company"), today 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.
With technology deeply ingrained in its core DNA, Carrot was founded with the vision of redefining insurance by recasting it from the ground up; changing the way people are protected, how people access insurance, how premiums are calculated, and ultimately, changing the way insurance is perceived.
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.
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.
It seems the company has nailed its product-market fit, as indicated by its steady, but fast-growing customer base. The ease of accessibility, the transparency of fees based on usage, AI-driven accident detection, and automated registration of first-notice-of-loss all point to strong customer propositions enabled by technology and data science.
"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."
About Carrot General Insurance Corp.
Based in Seoul Korea the company was established through a JV partnership with some of the big-name investors, including Hanwha, SK Telecom, Hyundai Motor Group, Altos Ventures, and 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. The company is also pursuing business in Pay-As-How-You-Drive auto insurance, which assesses the premiums as per customer's driving patterns and behavior through sensor data analytics. In line with the company's open innovation strategy, Carrot has 100+ national & international partnerships, including South Korean government unit that oversees national highways and traffic controls.
