Carrot granted exclusive behavioural-based insurance use in auto 

Since the launch of its BBI product, the accident rate amongst its customers has been at 12%.

Korean digital insurer, Carrot General Insurance, has acquired the exclusive right to use behavioural-based insurance (BBI) for six months from the General Insurance Association of Korea.

“This achievement is significant as it marks the first time in four years and four months that an exclusive right has been granted in the auto insurance category among all property and casualty insurers. Auto insurance, a compulsory product sold by 12 general insurance companies, is typically standardized with minimal differentiation,” the company said.

Therefore, exclusive rights in this category are uncommon. Carrot has now achieved this distinction twice since the early 2020s.

Carrot’s BBI system is innovative in that it offers discounts to all customers based on their safe driving scores, calculated monthly.

Customers receive reimbursements depending on the number of safe driving achievements during the insurance period. 

The originality and progressiveness of Carrot's system were recognized by the General Insurance Association’s New Product Review Committee, which led to the granting of the exclusive right.

Since the launch of Carrot’s behavioural-based insurance on 30 May, the accident rate amongst its customers who achieved a safe driving score of 70 or higher and drove a minimum of 100 kilometres in June was 12%. 

This is lower than the industry average accident rate for June, which has ranged from 15% to 17% between 2019 and 2023.