Carrot Insurance Increases Per-Mile Auto Insurance Premiums by 6.5%

[Asia Economy Reporter Oh Hyung-gil] Carrot General Insurance is raising the premiums for its "Pay-Per-Mile Auto Insurance," where customers pay insurance premiums based on how much they drive.

Carrot General Insurance announced on the 13th that it will increase the Pay-Per-Mile Auto Insurance premiums by an average of 6.5% starting from the 20th.

Carrot General Insurance explained, "When the Pay-Per-Mile Auto Insurance was launched in February last year, premiums were calculated based on the 2018 index (reference net premium rate). This time, we decided to raise the premiums by reflecting the latest index."

Last year, Carrot General Insurance's loss ratio (the ratio of insurance claims paid to insurance premium income) was reported to be in the 130% range.

A Carrot General Insurance official stated, "Pay-Per-Mile Auto Insurance requires monthly premium payments, and since many drivers who signed up after its launch in February last year have not yet completed one year of coverage, it is premature to directly compare the loss ratio with other general insurers that require annual premium prepayment. When last year's Pay-Per-Mile subscribers are converted to annual subscriptions for calculation, the loss ratio comes out to the 80% range," adding.

Earlier, on the 16th of last month, MG General Insurance raised personal auto insurance premiums by an average of 2%, and on the 10th of this month, Lotte General Insurance increased premiums by an average of 2.1%.