Roots Automation, the creator of the AI-Based Digital Coworker and InsurGPT (the world’s first generative AI model for insurance), announced the closing of a $22.2 million Series B funding round. Harbert Growth Partners led the round, including follow-on investments from MissionOG, Liberty Mutual Strategic Ventures, and Vestigo Ventures.
Unstructured data trapped in everyday correspondence—such as 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.
Roots Automation has created the most advanced AI-powered Digital Coworker. And it leverages Roots’ proprietary generative AI, InsurGPT, and the Roots Autonomous Workforce Platform to transform unstructured information into clear, actionable insights. This enables 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:
1.) A 99% accuracy on data extraction for an East Coast-based regional P&C insurer
2.) A 97% reduction in handling times for a US-based commercial P&C and workers’ compensation carrier
3.) A 90% error reduction in premium calculations for a US-based commercial auto insurer
4.) An 85% increase in claims processing capacity for a US-based third-party claims administrator
The high 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. This new funding represents the ongoing commitment from customers and investors and is a testament to the value and innovation that Roots brings to the insurance industry.
KEY QUOTES:
“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.”
-Ned Rand, CEO of ProAssurance Group
“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.”
-Chaz Perera, Co-Founder & CEO, Roots Automation
“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. 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.”
-Brian Carney, General Partner of Harbert Growth Partners
