Roots Automation, a leading provider of AI-powered solutions for the insurance industry, has announced the successful close of a $22.2m Series B funding round.
The company plans to use the new funding to fuel its market expansion, support organisational growth, and continue product development.
The funding round was led by Harbert Growth Partners, with participation from existing investors MissionOG, Liberty Mutual Strategic Ventures, and Vestigo Ventures.
The company, known for its Digital Coworker and InsurGPT™ technologies, focuses on automating data processes for insurers.
Roots Automation’s platform addresses the challenge of unstructured data in the insurance industry, which comprises 80% of the data generated from daily operations such as legal demands, medical records, and submissions.
The inability to utilise this data effectively has been costing the industry $100bn annually, due to issues like underpriced premiums, fraud, and overpayment of claims.
Roots Automation’s Digital Coworker and proprietary AI model, InsurGPT™, help turn this unstructured information into actionable insights, enabling faster and more accurate decision-making.
The New York-based firm has already demonstrated significant impact in the insurance sector, providing its services to 35 US-based insurance companies.
The company’s AI solutions have delivered a 99% accuracy rate on data extraction for a regional property and casualty (P&C) insurer and achieved a 97% reduction in handling times for a commercial P&C and workers’ compensation carrier.
Other achievements include a 90% error reduction in premium calculations for a commercial auto insurer and an 85% increase in claims processing capacity for a third-party claims administrator.
Chaz Perera, Co-Founder & CEO, Roots Automation commented on the news, “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.”
Brian Carney, General Partner of Harbert Growth Partners, remarked, “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. We’re excited to have the opportunity to provide Roots with additional capital and guidance as they solve increasingly complex challenges across insurance.”
Ned Rand, CEO of ProAssurance Group, added, “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. After seeing the success of a Digital Coworker at Eastern Alliance, our workers’ compensation business, executives from our medical malpractice and life sciences/medical technology are now looking to Roots for potential implementations.”
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