Carrot Insurance Launches Korea's First E-commerce 'Return Insurance'

Collaboration with 11st
Plans to Expand to Products for Future Buyers

[Asia Economy Reporter Ki Ha-young] Carrot General Insurance announced on the 17th that it has launched the country's first 'Return Insurance' in collaboration with 11st. Return Insurance is a product where the insurer pays the return shipping fee on behalf of the customer when returning items due to a change of mind after purchasing from online shopping malls.

Carrot's Return Insurance is offered to sellers registered on 11st, and by analyzing big data related to purchases and returns on 11st, differentiated minimum premiums were calculated for each product category. Through this, sellers can provide free return services to purchasing customers at reasonable premiums, expecting an increase in sales, and e-commerce buyers can purchase items such as clothing and shoes, which previously had concerns about return costs when exchanging sizes, with peace of mind through free returns.

Carrot is also preparing Return Insurance for buyers in addition to the seller-targeted return insurance. By analyzing big data, it plans to present reasonable premiums differentiated individually according to return behaviors by e-commerce platform, seller, and ultimately by customer.

Jung Young-ho, CEO of Carrot General Insurance, said, "There is great interest from e-commerce companies in Return Insurance, and depending on the progress with 11st, we plan to expand the service target," adding, "We will continue to develop such e-commerce specialized insurance products to create win-win cases for sellers and buyers and contribute to the expansion of the digital ecosystem."