First Step Towards Becoming a Global Insurtech
SEOUL, South Korea, March 18, 2024 /PRNewswire/ -- Carrot General Insurance Corp. ("Carrot" or the "Company") has taken its first step on the journey to becoming a global insurtech company.
Carrot, South Korea's largest digital insurance carrier, has announced a partnership with Lippo General Insurance ("LGI") Indonesia to develop a Behavior Based Insurance (BBI) solution. LGI is a non-life insurance company serving customers on an individual and corporate scale, with various innovative insurance solutions for health, property, motor vehicle, transport and personal accident among others.
This project win marks a significant milestone, acknowledging Carrot's technological expertise and data capabilities in international markets, paving the way for new revenue streams beyond underwriting income from insurance operations.
In 2020, shortly after its establishment, Carrot introduced Pay-Per-Mile auto insurance, billing premiums on a monthly basis based on measured driving distance using its own IT device. The company also operates the Members-Auto service, using advanced analytics to assess driver's habits and rewarding points based on safe driving score. With approximately 300 million kilometers of driving data accumulated monthly, Carrot possesses robust analytical capabilities.
Leveraging its accumulated data capabilities and experience, Carrot plans to create integral systems to facilitate LGI's introduction of BBI product in Indonesia. Particularly, Carrot will focus on developing the real-time mobility data analytics platform for the Behavior Based Reward service (BBR) and providing modeling support for precise risk assessment for individual drivers and fleets with the company's own know-how and data capabilities that has been proven during multi years of underwriting operations in Korea, and to ensure the successful launch and operation of BBI product in Indonesia.
Indonesia is currently the only ASEAN nation where auto insurance is not mandated, but discussions have recently been underway for mandatory auto insurance policies led by the local government. Therefore, with a population of approximately 300 million, Indonesia is considered a country with high growth potential in the auto insurance market. For global business initiatives, Carrot will continuously look for more business opportunities in the foreign environment not limited to its domestic borders.
Moon Hyo-il, CEO of Carrot General Insurance, stated "This business partnership demonstrates Carrot's commitment to relentlessly pursuing growth and development beyond domestic borders, showcasing Carrot's journey towards becoming a leading insurtech service provider, leveraging our expertise in data-driven insurance technology."
[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 February 2024, the company has written over 1.7M auto insurance policies and distributed different types of protection products through cross-selling and embedded insurance platforms. 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 to better manage risks of policyholders. 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.
In August 2022, Carrot has successfully closed the series A funding of 175B KRW (US$ 145M) led by private equity firm Affirma Capital. Recently in December 2023, the company has secured additional 130B KRW (US$ 108M). 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.
