UK UBI platform Carrot launches in North America, with different strategy

Register now

Carrot, a usage-based insurance platform that operates as an MGA in the UK, has launched in the North American market. But its parent company, the telematics OEM IMS, has a different plan for it than how it’s operated overseas.

Here, Carrot is packaging its analytics and driver-coaching platform, based on driving data collected via smartphone and on-board devices alike, as a whitelabel offering for any interested auto insurer, rather than looking to distribute policies itself.

“In the U.S., if we were looking to launch Carrot direct-to-consumer, we’d need lots of marketing money,” says Nino Tarantino, CEO of IMS Americas. “But with so many insurers looking to build a more engaging [usage-based insurance program], we felt the best way for us to get out there was this strategy.”

Carrot uses telematics and analytics technology to offer rewards for good driving. This “carrot-and-stick” approach increases engagement by gamifying the driving experience and incentivizing users to check in often on their results and adapt driving accordingly.

“We see 80% of users check the app at least once a week, and 55% of them at least once a day” in the UK, Tarantino says.

Current users of Carrot tech include the insrurers RSA, Zurich, and Aviva, and auto manufacturers Volkswagen and Fiat.

For reprint and licensing requests for this article, click here.
Insurtech Telematics Usage-based insurance
MORE FROM DIGITAL INSURANCE