Seoul, South Korea, March 23, 2022 /PRNewswire/ — Insurance technology platform Carrot General Insurance Corp. (Carrot) and two established insurance companies, Hanwha General Insurance (Hanwha) and Lotte Non-life Insurance Co. (Lotte), unite to revolutionize South Korea insurance claims settlement system. The parties announced on Monday that they are joining forces in “an exclusive strategic alliance” across the South Korean peninsula with the aim of “changing the face of accident handling and the claims process”. Carrot, holding the largest stake in the joint venture, will lead the development of the new business with its proprietary data and technology while Hanwha and Lotte will support Carrot’s leadership. The newly formed platform will begin operations in April 2022 as Hero Claims Management Inc. (Hero).
A spokesperson for Carrot said: “[the new business] will provide revolutionary claims management capabilities to its insured customers, reducing claims time and costs, while making the post-accident process fast, fair and frictionless… By leveraging the combined resources, advantage of the ‘shared infrastructure and technology, Carrot and our partners will achieve economies of scale while maximizing operational efficiency.’
Carrot anticipates that the formation of the joint venture will stabilize losses while removing obstacles that could impede the company’s rapid growth. In addition, Carrot’s innovative approach creates a solid systemic foundation for Korean small and medium-sized insurers, as the service will also be available for other insurance companies. The Hero business will not only increase their profitability, but also allow them to quickly offer fast and convenient care to their clients, wherever they are in the country, without incurring a significant financial burden.
The core service will include automatic AI-based claims damage assessments, automated FNOL pick-up, timely dispatch of adequate services, categorization, automated claims payment, and settlement variability. In addition, the new company will develop an additional service layer suitable for electric and autonomous vehicles, which are clearly on the rise while requiring distinguished solutions. (Note: FNOL stands for “First Notice of Loss”.)
The board decided to appoint Eun Lee as the new CEO of Hero. Lee brings decades of deep Hanwha experience, including leadership roles in auto insurance, operations and human resources. Carrot recently announced its sales of over half a million UBI policies within two years. Carrot’s driving data analysis, crash restructuring technique and various machine learning algorithms that enable process automation will form the basis of Hero’s future business.
About Carrot General Insurance Corp.
Situated at Seoul, Korea the company was created through a JV partnership with some of the big investors including Hanwha, SK Telecom, Hyundai Motor Group, Altos Ventures and Stic Investments. As the country’s first fully licensed, 100% digital insurer, Carrot disrupted the market with innovative products and outpaced global peers in customer acquisition speed for its usage-based insurance program. The company’s successful footprint is due to strong customer value propositions, including easy and accessible insurance, transparent premiums, automated AI accident recording and rapid dispatch of assistance services, all made possible by proprietary technology. The company is also pursuing business in Pay-As-How-You-Drive auto insurance, which assesses premiums based on driving habits and customer behavior through the analysis of sensor data. In line with the company’s open innovation strategy, Carrot has more than 100 domestic and international partnerships, including the South Korean government unit that oversees national highways and traffic controls.
About Hanwha General Insurance
Hanwha General Insurance Co Ltd is a South Korea-based company primarily engaged in the non-life insurance sector with $17.9 billion in total assets. Founded in 1946, the company is South Korea’s first insurance company financed solely by domestic capital. Their insurance products include fire insurance, marine insurance, automobile insurance, specialty insurance, long-term insurance, private pension insurance and others. The Company also has footprints in the reinsurance sector. In addition, the Company provides loan services, such as insurance contract loans, apartment mortgages and lending services.
About Lotte Non-Life Insurance
Lotte Non-Life Insurance Co., Ltd. is a South Korean insurance company specializing in non-life insurance. The Company’s insurance products include fire insurance, marine insurance, automobile insurance, warranty insurance, specialty insurance, overseas damage insurance, insurance term insurance, annuity insurance and retirement income insurance. In addition, the Company also offers loan services.
SOURCE Carrot General Insurance Corp.
