Case Study

Carrot Insurance - Rewards Program Case Study

Capitalizing on a Rewards Program That Really Works for Insurers

Executive Summary


The value of telematics data as a mechanism for both intelligently improving loss ratios and simultaneously encouraging safe driving practices is demonstrated by a rewards program instituted by Carrot Insurance.

By focusing on developing customer-centric insurance programs, Carrot Insurance, a subsidiary of Trak Global Group, has pioneered telematics solutions that provide frequent engagement with policyholders and strong incentives emphasizing safety and recommended driving practices that genuinely enhance an insurer’s bottom line.

Noting the deficiencies in many existing rewards programs, Carrot Insurance set out to develop an app-based program, grounded in telematics data, to definitively establish that a well-designed rewards program could improve loss ratios, reduce accident frequencies, and incentivize drivers to adopt safe driving habits. The Better Driver app was developed by Carrot Insurance as part of a pilot program to refine and validate the techniques for engaging with lower-premium drivers. Earlier, an innovative New Driver black box insurance telematics program for younger drivers, introduced in 2012, helped establish a way to provide reasonably priced insurance in line with the driving behaviors of those with less experience behind the wheel.

Carrot Insurance Rewards Case Study

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