View this article online: https://www.insurancejournal.com/news/national/2018/03/27/484492.htm
Columbus, Ohio-based auto insurer Root Insurance, which incorporates individual driver behavior data from mobile phone apps in every quote, announced the closing of a $51-million Series C funding round.
Investors were led by Redpoint Ventures, with Scale Venture Partners and existing partners Ribbit Capital and Silicon Valley Bank Capital Partners also participating in the round.
The company said it will use the new funding to expand into additional states and continue to invest in technology.
While most car insurance companies rely on data like age, occupation and credit score to set rates, Root uses data on actual driving behavior including data on hard brakes, aggressive turns and mileage driven. Root says using individual driving behavior as the biggest factor in its rating algorithm allows good drivers to save significantly.
“Our technology allows us to give drivers rates based primarily on factors they can actually control, bringing fairness to a broken and antiquated industry. We are leveraging mobile technology and artificial intelligence to reimagine the way insurance works,” said Alex Timm, CEO and co-founder of Root.
Since its launch in Ohio in 2016, Root has expanded to 11 additional states: Arizona, Indiana, Illinois, Kentucky, Louisiana, Mississippi, Montana, Oklahoma, Pennsylvania, Texas and Utah. The company plans to be nearly national by 2019.
Reinsurers for Root, a full-stack insurer, include Maiden Re, Munich Re and Odyssey Re.