Columbus, Ohio-based Root Insurance, says it plans to expand into additional states in 2019 and increase its workforce by 150 percent.
The insurtech in 2018 added 12 states — Louisiana, Montana, New Mexico, Arkansas, Delaware, Missouri, Iowa, North Dakota, Maryland, Oregon, Nebraska and South Carolina — and now offers its products and services in 22 states. Direct written premiums grew last year to more than $100 million, a 2,600 percent increase over 2017, the company said.
Root, which prices every policy primarily on actual driving behavior, has a goal of being nationwide by 2020. In the first half of 2019, it anticipates launching in New Hampshire, Connecticut, West Virginia, North Carolina, Georgia, Alaska, Hawaii, California, Nevada, Tennessee, Virginia and Washington, D.C.
Root expects to add over 350 employees this year, which will beat initial projections by two years.
The company said it has made rapid advances in the way Root can save good drivers money by recognizing unusual phone patterns such as when and how frequently someone is engaging with their smartphone while driving. To encourage safe driving behavior, Root offers a discount to drivers that avoid using their mobile phones while driving.
Root closed a $51-million Series C funding round in March 2018 led by Redpoint Ventures, with Scale Venture Partners and existing partners Ribbit Capital and Silicon Valley Bank Capital Partners also participating in the round. Later in the year, Root also announced $100 million in Series D funding, led by Tiger Global Management. This raises Root’s valuation to $1 billion and provides capital to expand into new states, fuel hiring plans and bring systems to scale.
Source: Root Insurance
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