South Korean Insurtech Carrot Launches Pay-Per-Mile Insurance Specifically Designed For Electric Vehicles

by Theleaders-Online | August 18, 2021 2:06 pm

SEOUL, South Korea, Aug. 18, 2021 /PRNewswire/ — One of the world’s leading Insurtech from South Korea Carrot General Insurance Corp. (“Carrot” or the “Company”) hit its stride with the rollout of its pay-per-mile auto insurance specially designed to protect electric mobility and the owners.  The new service, called “Carrot EV Cover,” was put together to supplement the recent release of the KIA’s EV6 model, the South Korean automaker’s first all-electric model embedded with Hyundai Motor Group’s own EV-only electric-global modular platform (E-GMP).  Starting with the coverage for EV6, Carrot plans to expand product offerings for other electric vehicles soon, the company stated.

Carrot Seoul Office[1]
Carrot Seoul Office

Carrot EV Cover is being launched partly as a way to provide electric vehicle owners with an insurance option that is fair and tailored for sustainable mobility, according to the spokesperson at Carrot.  Due to higher cost to repair the damages than those of a gas-powered vehicle, insurance companies usually need to account for the added repair costs, thus charging consumers with higher premiums.  But Carrot’s cover with the rates being reasonably priced and yet designed in ways that suits specific needs for those owners of electric vehicles, surely demonstrates that the company is on the edge with strong competitive advantages over its peers in this market segment.

The coverage is constructed with four main unique value propositions in addition to comparable coverage limits for bodily injury and damage liability; 100% replacement of batteries upon accident, comprehensive or collision coverage with guaranteed payout up to 150% of value of the vehicle, limits that cover liability for death, injury and damages occurring while charging the vehicle, and lastly, emergency dispatch and towing service with an extended distance of up to 120 kilometers.  Carrot is currently in a series of discussions to further extend the offerings to include the cover for the liabilities exposed from charging the vehicles and third-person injuries.

According to the Ministry of Transport of South Korea, there are over 160,000 electric vehicles on the road as of May 2021 and the number is growing steadily.  The global green movement away from vehicles powered by fossil fuels is being driven as the citizens as the awareness on climate-change along with the sustainability commitments from the corporate world are being raised.  

“In response to the changing landscape and the demand in growth of the electric vehicle across the globe, Carrot is spearheading the way to revolutionize the auto insurance and contribute to drive towards eco-friendly society”, said Paul Jung, CEO of Carrot. He continued, “In line with perceptions surrounding the electric vehicles, our team focused the efforts in providing the EV owners with adequate insurance coverages that are smart and efficient.”

Carrot was established in 2019 through a joint partnership between Hanwha, SK Telecom, Hyundai Motor Group, Altos Ventures and Stic Investments.  It has attracted close to 300,000 customers to its pay-per-mile auto insurance within 2 years of operation and is scaling aggressively for bigger market share.  Past month, the company announced that they have raised a fresh funding and doubled its capital close to 200 million US dollars.

Content related contact:
David J. Park
dave@carrotins.com
+82 010-3410-2324

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Source: Carrot General Insurance Corp.

Endnotes:
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