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

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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.

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Insurtech Telematics Usage-based insurance