Carrot Sonbo, Obtains 6-Month Exclusive Use Rights for Auto Insurance Special Contracts

First Time in 4 Years and 4 Months for the Non-Life Insurance Sector in the Auto Insurance Field

Digital non-life insurer Carrot General Insurance announced on the 3rd that its automobile insurance's 'Good Drive Rider with Accumulating Discounts' has obtained a 6-month exclusive usage right from the General Insurance Association of Korea.

This exclusive usage right is notable as it is the first time in about 4 years and 4 months that such a right has been granted in the automobile insurance category across the entire non-life insurance sector. Automobile insurance is a mandatory insurance product sold by a total of 12 non-life insurers, with relatively few differentiating factors among insurers. As a result, since the exclusive usage right system was established, cases of granting exclusive usage rights for automobile insurance have been rare. Applications for exclusive usage rights for automobile insurance are also extremely rare. Since the 2020s, there have been only two cases of applying for exclusive usage rights for automobile insurance, both of which were applied for and granted to Carrot.

It is also unusual that this exclusive usage right was granted after a reconsideration process. When an insurer applies for an exclusive usage right and the initial decision is a denial, the insurer can request a reconsideration once through an objection, but it is rare for the decision to be overturned.

During the application process for this exclusive usage right, after the initial denial, Carrot supplemented its application and requested reconsideration regarding a system that calculates discounted premiums and refunds based on the number of safe driving achievements during the automobile insurance period. The New Product Review Committee of the General Insurance Association overturned the initial decision and highly evaluated the originality and advancement of Carrot’s new system and service, granting a 6-month exclusive usage right.

Unlike existing safe driving riders, it is reported that the system received high marks for motivating customers to drive safely during the actual insurance period and providing personalized feedback that allows customers to monitor and improve their driving habits themselves.

Yang Un-mo, Head of Mobility Division at Carrot General Insurance, said, "Obtaining this exclusive usage right for automobile insurance is the result of tireless efforts by all Carrot employees to realize the values and vision we pursue. We will continue to strive to achieve more innovations in the insurance industry in line with Carrot’s founding purpose of expanding consumers’ insurance choices and enhancing their benefits."

Meanwhile, this exclusive usage right will be applied for six months from the approval date. Carrot has reflected the ‘Good Drive Rider with Accumulating Discounts’ in its automobile insurance products and started selling it since April 23.