Unstructured Data: Roots Automation Secures US$22.2mn
Roots Automation, a New York-based InsurTech firm, has successfully closed a US$22.2mn Series B funding round, led by Harbert Growth Partners. The capital injection will accelerate the company's growth and further develop its AI-powered solutions tailored for the insurance sector.
The funding comes at a crucial time for the insurance industry, which is grappling with the challenge of effectively utilising unstructured data. Approximately 80% of all data across insurance is trapped in everyday correspondence, including submissions, legal demands, and medical records. The inability to harness this data for decision-making is costing insurance companies an estimated US$100bn annually due to underpricing premiums, insurance fraud, and overpaying claims.
Roots Automation's flagship product, the AI-powered Digital Coworker, leverages the company's proprietary generative AI, InsurGPT, and the Roots Autonomous Workforce Platform to transform unstructured information into actionable insights. This technology enables insurance leaders to make faster, more informed decisions.
Transformative Results in the US Insurance Market
The company's solutions have already demonstrated significant impact across its 35 US insurance industry customers. Notable achievements include a 99% accuracy rate on data extraction for an East Coast-based regional P&C insurer, a 97% reduction in handling times for a US-based commercial P&C and workers' compensation carrier, and a 90% error reduction in premium calculations for a US-based commercial auto insurer.
Ned Rand, CEO of ProAssurance Group says: "The benefit of Roots' team's experience in and focus on the insurance industry is that we are already speaking the same language. This means we can come to an understanding on the business requirements and objectives quickly in the solution development lifecycle".
Addressing the Unstructured Data Challenge
Chaz Perera, Co-Founder & CEO of Roots Automation says: "Six years ago, Roots set out to solve the unstructured data problem that insurers, third-party administrators (TPAs), brokers and agents all face. Now, by freeing their teams from manual processes, we enable today's top insurance brands to excel in their markets and concentrate on what really matters—delighting clients with impeccable service and exceptional care".
The InsurTech sector has seen significant growth and innovation in recent years, with new technologies such as Blockchain, Internet of Things, Chatbots, Telematics, and Artificial Intelligence driving transformation in the insurance industry. These advancements have contributed to better risk management, more accurate underwriting, and enhanced customer engagement.
Research has shown a positive correlation between InsurTech adoption and premium growth, demonstrating that technological advancements not only drive competitive edge but also lead to greater profitability and sustainability in the insurance sector.
Brian Carney, General Partner of Harbert Growth Partners, says: "The Roots leadership team brings over 100 years of deep insurance industry and AI expertise, ensuring solutions and products are designed to meet the specific needs of insurance organisations. We were extremely impressed by Roots' glowing customer feedback and validation of the value created across its customer base"
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