Roots Automation Secures $22.2M to Revolutionize Insurance Industry with AI

Roots Automation raises $22.2M to boost efficiency for insurance firms with generative AI - SiliconANGLE

Roots Automation raises $22.2M to boost efficiency for insurance firms with generative AI Insurance technology startup Roots Automation Inc. is looking to transform the industry with dedicated generative artificial intelligence models after closing on a new $22.2 million funding round. Today's Series B round was led by Harbert Growth Partners and saw participation from MissionOG, Liberty Mutual Strategic Ventures and Vestigo Ventures, which all made follow-on investments in the company. Roots is the creator of an AI-powered Digital Coworker for insurance companies, which leverages its proprietary InsurGPT large language model to help automate much of the work they need to do. Its Digital Coworker is built atop of InsurGPT and also taps into the capabilities of its Roots Autonomous Workforce platform to transform unstructured information into clear and actionable insights. Using it, the company says, insurance firms can make faster and better decisions on everything from premiums pricing to claims processing. Roots explains that data is absolutely critical to insurance firms, yet they're unable to use the vast majority of the information they collect. Something like 80% of all of the data gathered by insurers is unstructured information, such as email correspondence, legal demands, medical records and submissions. Because this information can't be neatly arranged inside a traditional database, it's almost impossible for traditional analytics tools to work with. According to Roots, the inability to harness unstructured data costs insurance companies more than $100 billion annually because of underpriced premiums, overpaying claims and fraud. By using AI to glean proper insights from all of this unstructured data, Roots reckons, it has delivered some impressive benefits for its 35 U.S. customers. They include a 97% reduction in handling times, 99% accuracy on data extraction, a 90% reduction in error rates on premium calculations and an 85% increase in claims processing capacity. These benefits have led to "overwhelming demand" for Roots' capabilities, the startup said, which is why it needs more capital to support its market expansion efforts and accelerate its product development. Roots co-founder and Chief Executive Chaz Perera said unstructured data is an obstacle for every insurance company, third-party administrator, insurance broker and agent. "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, providing impeccable service and exceptional care," he said.

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, Sept. 17, 2024 /PRNewswire/ -- Roots Automation, creator of the AI-powered Digital Coworker and InsurGPT™, the world's first generative AI model for insurance, today announced 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 insurer97% reduction in handling times for a US-based commercial P&C and workers' compensation carrier90% error reduction in premium calculations for a US-based commercial auto insurer85% 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, 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 https://missionog.com/. Media Contacts Market Street Group Jessica Mularczyk jessica@marketstreetgrp.com View original content to download multimedia:https://www.prnewswire.com/news-releases/roots-automation-raises-22-2-million-to-unlock-the-value-held-within-unstructured-data-across-insurance-with-ai-302250212.html SOURCE Roots Automation Inc Market News and Data brought to you by Benzinga APIs