Root Insurance could be insurtech’s next high-profile IPO
Pioneering an agile, digital approach
Using smartphone technology, Root is able to measure driver behaviour and build a reflective profile of their overall safety on the road.
Furthermore, the company offers insurance premiums exclusively to those they decide are the best drivers, thereby also reducing the policy rates to a much more affordable price. The company’s app can be used to purchase, customise or cancel policies, as well as file for claims.
“These models were already posing challenges for insurers before the COVID-19 pandemic emerged. As they organise for the next normal, it will be critical for insurers to get faster, leaner, and more effective. Agility helps on all three counts.”
Root’s (as well as Lemonade’s and Duck Creek’s) market confidence to launch IPOs at a time when many other industries are questioning their viability in the new normal suggests that insurance has quickly found its feet.
Indeed, other sectors should look to leading insurtechs’ innovative, tech-driven approach as a roadmap for maintaining relevance in a shifting economic landscape.