The first insurtech on the list of unicorns
The value of the American insurtech Root Insurance has exceeded 1b dollars. The company became the first insurtech recorded on the list of unicorns.
Root Insurance specializes in motor insurance based on telematics. The startup was founded in 2015 in Columbus (Ohio). Its founders’ idea was to give drivers a discount if they drive safely. According to the company’s founders, careful drivers cause fewer accidents so they are a lower cost to insurance companies. As a consequence they should pay less for an MTPL policy.
The startup estimates the price of a policy on the basis of the driving style. The company analyses information about places visited by a car, favourite parking places, the method of car usage. Thank to this, a drivers gets an offer which is matched to him.