South Korea's Carrot Insurance folded into parent Hanwha

Carrot General Insurance, South Korea’s first digital-only general insurer, is set to merge with parent firm Hanwha General Insurance after years of mounting losses. Hanwha boosted its stake to 98.3% by acquiring shares from major investors for KRW205.6bn (USD144m), signaling the end of Carrot’s standalone operations. Launched in 2019 with pay-per-mile auto insurance, Carrot failed to turn a profit, racking up KRW330bn in losses and a sharp drop in capital adequacy. Its collapse underscores the challenges digital insurers face in a market dominated by traditional sales channels. All five digital insurers in Korea posted losses in 2023, raising questions about the viability of digital-first models in the sector.