Carrot-led Claims Management Joint Venture Set To Disrupt The Industry Once Again – PR Newswire
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), are uniting to revolutionize South Korea’s insurance claims adjustment system. The parties announced Monday that they are joining forces in “an exclusive strategic alliance” across the South Korean peninsula with the goal to “change the face of the accident handling and claims process”. Carrot, holding the largest share stakes in the joint venture, will spearhead the development of the new business with its proprietary data and technology while Hanwha and Lotte support Carrot’s leadership. The newly formed platform will commence operations in April 2022 under the name Hero Claims Management Inc. (Hero).
A Carrot spokesperson stated, “[the new business] will deliver revolutionary claims management capabilities to its insured clients, lowering settlement time and costs, while making the post-accident process fast, fair and frictionless…By leveraging combined resources, shared infrastructure advantage and technology, Carrot and our partners will realize economies of scale while maximizing operational efficiency.”
Carrot anticipates that having formed the joint venture will stabilize losses while eliminating obstacles that may hinder the company’s rapid growth. Furthermore, Carrot’s innovative approach creates a strong systemic foundation for Korean insurers of small to medium sizes, as the service will also be available to other insurance companies. The Hero business will not only increase their cost-effectiveness but will also enable them to offer fast and convenient care to their customers rapidly, regardless of where they are in the country without taking much financial burden.
The core service will include AI-driven auto-claims damage assessments, automated FNOL intake, prompt dispatch of adequate services, categorization, automated claims payout, and settlement variability. Furthermore, the new company will develop an extra layer of service tailored for electric and autonomous vehicles, which are clearly on the rise while requiring distinguished solutions. (Note: FNOL is “first notification of loss.”)
The board has decided to name Eun Lee as the new CEO of Hero. Lee brings decades of extensive experience from Hanwha, including leadership roles in auto insurance, operations, and HR. Carrot recently announced its sales of more than half a million UBI policies within a two-year timeframe. Carrot’s driving data analytics, accident restructuring technique, and various machine learning algorithms that enable the automation of processes will form the basis of the future business of Hero.
About Carrot General Insurance Corp.
Based in Seoul Korea the company was established through a JV partnership with some of the big-name investors, including Hanwha, SK Telecom, Hyundai Motor Group, Altos Ventures, and Stic Investments. Being the nation’s first fully-licensed 100% digital insurance carrier, Carrot has been disrupting the market with innovative products and has outpaced its global peers in terms of the speed of acquiring customers to its usage-based insurance program. The company’s successful footprint owes itself to strong customer value propositions, including easy and accessible insurance, transparent premiums, AI automated accident registration and prompt dispatch of help services all made possible via proprietary technology. The company is also pursuing business in Pay-As-How-You-Drive auto insurance, which assesses the premiums as per customer’s driving patterns and behavior through sensor data analytics. In line with the company’s open innovation strategy, Carrot has 100+ national & international partnerships, including South Korean government unit that oversees national highways and traffic controls.
About Hanwha General Insurance
Hanwha General Insurance Co Ltd is a South Korean company mainly engaged in the non-life insurance business with USD 17.9 billion in total assets. Established in 1946, the company is the first South Korean insurance company funded 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 engages in the provision of loan services, such as insurance contract loan, apartment mortgage loan and credit loan services.
About Lotte Non-life Insurance
Lotte Non-Life Insurance Co., Ltd. is a South Korean insurance company specialized in non-life insurance business. The Company’s insurance products include fire insurance, marine insurance, automobile insurance, guarantee insurance, specialty insurance, foreign casualty insurance, long-term insurance, annuity insurance and retirement income insurance, among others. In addition, the Company also provides loan services.
SOURCE Carrot General Insurance Corp.
