Roots Automation Raises $22.2 Million to Unlock the Value Held within Unstructured Data across Insurance with AI

Capital will accelerate growth and build upon Roots Automation’s made-for-insurance AI, enabling carriers, TPAs, brokers, and agents to drive significant improvements in overall business performance

New York, NY (Sept. 17, 2024) – Roots Automation, creator of the AI-powered Digital Coworker and InsurGPT™, the world’s first generative AI model for insurance, is pleased to announce the closing of a $22.2 million Series B funding round. Harbert Growth Partners led the round, with follow-on investments from MissionOG, Liberty Mutual Strategic Ventures and Vestigo Ventures.

Unstructured data trapped in everyday correspondence – including submissions, legal demands, and medical records – constitutes around 80% of all data across insurance. The inability to effectively harness this data for decision-making costs insurance companies $100 billion annually due to underpricing premiums, insurance fraud and overpaying claims.

To address this, Roots Automation created the most advanced AI-powered Digital Coworker. It leverages Roots’ proprietary generative AI, InsurGPT, and the Roots Autonomous Workforce Platform to transform unstructured information into clear, actionable insights. This allows insurance leaders to make faster decisions with greater confidence.

Roots Automation has delivered transformative results for the company’s 35 customers in the US insurance industry, including:

• 99% accuracy on data extraction for an East Coast-based regional P&C insurer
• 97% reduction in handling times for a US-based commercial P&C and workers’ compensation carrier
• 90% error reduction in premium calculations for a US-based commercial auto insurer
• 85% increase in claims processing capacity for a US-based third-party claims administrator

“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,” said Ned Rand, CEO of ProAssurance Group. “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.”

The overwhelming demand from the global insurance market for Roots’ products has led to the need for new capital to support market expansion, organizational growth, and product development for its cutting-edge AI. The new funding represents the ongoing commitment from customers and investors and is testament to the value and innovation that Roots brings to the insurance industry.

“Six years ago, Roots set out to solve the unstructured data problem that insurers, third-party administrators (TPAs), brokers and agents all face,” said Chaz Perera, Co-Founder & CEO, Roots Automation. “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.”

“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 organizations,” said Brian Carney, General Partner of Harbert Growth Partners. “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.”

About Roots Automation

Roots Automation combines machine intelligence and human ingenuity in the form of advanced AI that reads, reasons and infers like humans. Roots’ AI is trained on millions of non-public insurance documents, workflows and systems and continuously learns through interactions with human teams. Roots Automation enables leading brands to liberate their teams from high-volume, complex workflows allowing them to focus on what truly matters – delighting customers with superior service and care. Roots Automation is based in New York and was founded in 2018. For more information, visit www.rootsautomation.com.

About Harbert Growth Partners

The Harbert Growth Partners Funds (the “HGP Funds”) seek to generate superior returns for their investors by identifying and investing in promising emerging growth-stage technology companies. The HGP Funds’ Investment Team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. Currently investing out of HGP V, the HGP Funds have successfully exited several portfolio investments through transactions with a distinguished list of strategic acquirers, including, among others, Amazon, GE, GSK, Medallia, Philips, Qualtrics, Salesforce, Sophos, Target, and WEX.

About MissionOG

MissionOG partners with high-growth businesses that have proven models in segments where we have had success as operators and investors, including financial services and payments, data platforms, and software. We apply our experience and capabilities to a group of highly skilled and passionate entrepreneurs whose businesses are on the cusp of exponential growth. The firm is managed by operators and investors who have effectively built early to growth stage businesses and guided them through successful acquisitions. MissionOG is headquartered in Philadelphia. For more information, visit missionog.com.

SOURCE: Roots Automation Inc. via Market Street Group

Tags: Artificial Intelligence (AI), automation, data, data management, funding