AI-Insurtech Roots Automation has raised $22.2 mn in a Series B funding round led by Harbert Growth Partners, with additional support from MissionOG, Liberty Mutual Strategic Ventures, and Vestigo Ventures. The company plans to use the funds to further enhance its AI-powered platform, designed specifically for insurance operations.
Roots Automation focuses on transforming unstructured data—such as submissions, legal demands, and medical records—into actionable insights using its AI-driven Digital Coworker and InsurGPT™, the industry’s first generative AI model for insurance.
Unstructured data represents about 80% of information in the insurance sector, contributing to significant inefficiencies and $100 bn in annual losses from underpriced premiums, fraud, and overpaid claims.
CEO Chaz Perera emphasized that their solutions have delivered impressive results for 35 U.S.-based insurance clients, including:
- 99% data extraction accuracy for a property and casualty (P&C) insurer
- 97% reduction in handling times for a commercial P&C and workers’ compensation carrier
- 90% error reduction in premium calculations for a commercial auto insurer
- 85% increase in claims processing capacity for a third-party claims administrator
The new funding will support the expansion of these capabilities, driving further performance improvements for insurers, TPAs, brokers, and agents.
6 years ago, Roots set out to solve the unstructured data problem that insurers, third-party administrators (TPAs), brokers, and agents all face. By freeing their teams from manual processes, we enable today’s top insurance brands to excel in their markets and focus on what really matters—delighting clients with impeccable service and exceptional care.
Chaz Perera, Co-Founder and CEO of Roots Automation
Ned Rand, CEO of ProAssurance Group, commented on the impact of Roots Automation’s AI solutions: “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 quickly come to an understanding on the business requirements and objectives during the solution development lifecycle.”
Brian Carney, General Partner of Harbert Growth Partners, also spoke about the partnership: “The Roots team brings over 100 years of deep insurance industry and AI expertise, ensuring that the solutions and products are tailored to meet the specific needs of insurance organizations.”
Roots Automation’s continued growth underscores the increasing demand for AI-driven tools in the insurance sector, particularly those that address the challenges of unstructured data.
by Peter Sonner
