Carrot Sonbo wins contract for Indonesia Lifosonbo BBI solution construction project

Digital non-life insurer Carrot General Insurance announced on the 19th that it has won the project to build a Behavior Based Insurance (BBI) solution linked to driving habits for Lippo General Insurance in Indonesia.

Lippo General Insurance is a non-life insurer under the Lippo Group, ranked 6th in Indonesia's business sector, operating mainly in health insurance and automobile insurance.

This project win is the first case where Carrot General Insurance's technological capabilities and data expertise have been recognized in overseas markets. It is considered meaningful in that it has created a new source of non-insurance revenue.

Shortly after its establishment in 2020, Carrot General Insurance launched a pay-per-mile auto insurance product based on its self-developed Internet of Things (IoT) device that measures driving distance and charges premiums on a monthly basis. It also operates the Members Auto service, which analyzes drivers' driving habits and awards points based on the level of safe driving. Through this, it has accumulated driving data amounting to approximately 300 million kilometers per month and possesses the capability to analyze this data.

Based on the data capabilities and experience accumulated so far, Carrot General Insurance plans to build various systems necessary for Lippo General Insurance to introduce BBI auto insurance products in Indonesia. In particular, it will take full responsibility for the development of the data platform for the driving habit-linked reward service (BBR) and provide technical support to ensure that the BBI auto insurance product can be launched and operated stably in Indonesia. Carrot General Insurance will receive a certain amount of royalties from the premiums collected after the launch of BBI auto insurance in Indonesia.

Indonesia is currently the only ASEAN country where automobile insurance is not mandatory. However, recently, the local government has been discussing policies to mandate automobile insurance. Accordingly, Indonesia, with a population of about 300 million, is regarded as a country with high growth potential in the automobile insurance market.

Moon Hyo-il, CEO of Carrot General Insurance, said, “This business contract was secured not only due to Carrot’s accumulated data-based insurtech know-how but also thanks to the trend of the Financial Supervisory Service easing the reporting requirements for insurers’ ancillary businesses. We will continue to think more intensely and develop until Carrot General Insurance becomes a global insurtech company beyond Korea.”

This content was produced with the assistance of AI translation services.