The funding will accelerate the company’s growth and further develop its AI-powered platform tailored for insurance operations.
Roots Automation specialises in transforming unstructured data—such as submissions, legal demands, and medical records—into actionable insights through its AI-powered Digital Coworker and InsurGPT™, the industry’s first generative AI model for insurance. Unstructured data accounts for approximately 80% of all information in the insurance sector, leading to significant inefficiencies and losses, including $100 billion annually from underpriced premiums, insurance fraud, and overpaid claims.
“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 company’s AI solutions have already delivered impactful results for its 35 U.S. insurance clients, including:
- 99% data extraction accuracy for a regional property & casualty (P&C) insurer on the East Coast
- 97% reduction in handling times for a U.S.-based 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
Roots Automation plans to use the new funding to expand its capabilities and continue driving improvements in business performance for insurers, third-party administrators, brokers, and agents.
Ned Rand, CEO of ProAssurance Group, said: “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.”
He continued: “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.”
Brian Carney, General Partner of Harbert Growth Partners, also commented, saying: “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.”
He added: “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.”
