COLUMBUS, OHIO – Root, which calls itself the first insurance company founded on the principle of fundamental fairness, publicly launched in Ohio on Oct. 25 after a successful period of limited private availability. Its proprietary insurance platform, delivered through a mobile app, makes buying and using car insurance simple and fair, according to a press release announcing the launch.
Root is the nation’s first entirely mobile-based insurance carrier, and the first car insurance company using real driving data to determine rates for all of their customers. Root says its data-driven approach allows the company to ensure that good drivers receive the prices they deserve, rather than basing estimates primarily on outdated demographic data that much of the industry relies upon.
Its proprietary analytics platform uses machine learning algorithms to measure and predict risk based on driving data, such as accelerometer and GPS data collected from smartphones. By analyzing driving data against its predictive algorithms, Root is able to determine a driver’s specific level of risk, taking into account hundreds of factors including mileage driven, hard-braking, dangerous routes, driving regularity, and time of day.
“We are building a community of good drivers and giving those drivers the protection and prices they deserve,” said CEO and co-founder Alex Timm. “We believe that the industry is noble at its core, we’re there for you on the best and worst days. But right now, the customer is paying for an inefficient and unfair industry. We’re disrupting that model and restoring fairness to insurance.”
Through the Root app, users are able to receive a quote, purchase a policy, and make a claim, entirely on their phone. Root’s emphasis on mobile technology provides not only convenience to customers, but more accurate data in assessing good drivers.
“Mobile will transform the insurance industry. We now have the opportunity to not only provide a better customer experience, but also understand the people we are insuring in ways we never could before,” said Chief Technical Officer Dan Manges. “We’re bringing your data to your defense to help give you the price you deserve as a good driver.”
Root coverage is currently available to drivers in Ohio, with the company planning to expand into other states later this year. To date, Root has raised $7 million. The company is an official carrier licensed by Ohio Department of Insurance, a member of the Ohio Guarantee Fund, and backed by the largest reinsurance company in the world.
To learn more visit: http://www.joinroot.com
About Root: Headquartered in Columbus, Ohio, Root is the first insurance company founded on the principle of fundamental fairness. We create personalized products that give good drivers the protection they deserve. At Root we only insure good drivers, and that is why our rates are always fair. Unlike other insurance companies, we do not bundle good drivers with bad drivers. Instead, we use data science to find and reward good drivers with the best rates.
- Small businesses big winner with reinstatement of Health Reimbursement Arrangements
- Insuretech startups Hippo, Lemonade on the attack against agents who sell homeowners coverage in California
- 4 industry trends to watch for in 2017
- Shopping up, enrollment channels shift for Medicare Part D as more consumers rely on brokers
- Why companies can’t get marketing right
- Optimism rebounding among independent P&C agencies; leads to aggressive growth plans in 2017
- Lessons from the U.K.’s bold new retirement initiatives
- Annual review of client needs only makes sense