Carrot General Insurance, the Korean digital insurance firm, has acquired the exclusive right to use for behavioural-based insurance (BBI) for six months from the General Insurance Association of Korea.
It’s important to stress how significant this is, as it marks the first time in over four years that an exclusive right has been granted in the auto insurance category among all property and casualty insurers.
For those who are not aware, exclusive rights for auto insurance are very uncommon. However, Carrot has now achieved this distinction twice since the early 2020s.
Moreover, Carrot’s BBI system is unique to others, due to the fact that it offers discounted benefits to all customers, regardless of their safe driving score in the past.
The company’s system calculates monthly safe driving scores and provides reimbursements based on the number of safe driving achievements during the insurance period.
The originality of Carrot’s system was recognised by the General Insurance Association’s New Product Review Committee, which led to the granting of the exclusive right.
Furthermore, since the launch of Carrot’s BBI on May 30, the accident rate amongst its customers who achieved a safe driving score of 70 or higher and a monthly minimum driving distance of 100km in June was recorded at 12%.
In fact, this is lower than the average industry accident rate for June, which has ranged 15% to 17% between 2019 and 2023.
Kevin Yang, Director of Carrot’s Mobility Division, commented: “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.”
