500,000 Cases Increased in One Year
Insurance Premiums 13% Cheaper Compared to Other Insurances Effective
[Asia Economy Reporter Minwoo Lee] Carrot General Insurance, Korea's first digital non-life insurance company, announced that its 'Per-Mile Auto Insurance' has surpassed 1 million cumulative subscriptions three years after its launch.
On the 2nd, Carrot General Insurance revealed this achievement. Per-Mile Auto Insurance uses IT technology to measure driving distance and charges monthly in arrears based on the distance driven. It reached 500,000 cumulative subscriptions within two years of launch, and this time, subscriptions have increased at an even faster pace. As a result, last year's sales rose by 80%, and the company secured a 6% market share based on the Cyber Marketing (CM) channel. As of December last year, the renewal rate was 90.2%, the highest level in the industry.
The pay-as-you-drive model effectively reduced insurance premiums. According to the Korea Non-Life Insurance Association's disclosure in January this year, the average driving distance for Per-Mile Auto Insurance is approximately 7,000 kilometers. Compared to the industry average premium of 788,000 KRW, the average premium for Per-Mile Auto Insurance is 685,000 KRW, about 13% cheaper. As of the third quarter of last year, the credit card payment rate was 97.4%, the highest among non-life insurers.
A Carrot General Insurance official stated, "The reasonable insurance system that charges monthly in arrears based on actual usage and the enhancement of safety-first services have been effective for growth," adding, "We will introduce an innovative insurance product based on driving habits (BBI) by linking Carrot's own Internet of Things (IoT) system with proprietary information technology (IT), showcasing innovation in the insurance industry."
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