Root Insurance

Root Insurance is founded in 2015. Unlike traditional insurance companies which consider age of the client the location and an experience of driving, Root Insurance uses the driver's smartphone to estimate, how well it goes. Mobile application under the name Root estimates style of driving of the client on the basis of such indicators as driving speed, a manner of braking and turns and also the frequency of trips along new routes. For the two-week trial period a system collects enough data to calculate risk of accident and to assume how many the driver should pay for an insurance. According to in the company, experienced drivers can save up to 52% on a car insurance if they use Root Insurance services.

During the trial period the application constantly monitors activity of the driver and cannot be disconnected without the knowledge of the insurer. After that users can turn off manually tracking function, however, if it does not occur, the application will continue to collect data. However, this information is used only for further improvement of an algorithm, the user's insurance at the same time is not reviewed.

History

2019: The investment attraction from DST Global and other companies

In August, 2019 Yury Milner's fund DST Global became one of the leading investors in a round E Series of the American startup Root Insurance. The transaction is not closed yet, but it is supposed that following the results the cost of the company which is engaged in technologies of "smart" insurance can reach $3.65 billion.

Yury Milner's fund invested in the system developer of "smart" car insurance

In addition to DST Global, the American fund Coatue Management will become one more new investor. All former investors of the company, such as Tiger Global Management, Ribbit Capital, Redpoint and Drive Capital funds will also take part in a round. It is supposed that new investments for Root Insurance will become the largest round of financing for an insurance startup in 2019.^[1]

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