Roots Automation, the company behind the AI-powered Digital Coworker and InsurGPT™, the first generative AI model designed specifically for the insurance sector, has successfully raised $22.2 million in a Series B funding round. Led by Harbert Growth Partners, the round also saw participation from MissionOG, Liberty Mutual Strategic Ventures, and Vestigo Ventures.
Unstructured data, such as submissions, legal documents, and medical records, makes up about 80% of the data within the insurance industry. Inefficient handling of this data costs insurers approximately $100 billion annually due to issues like underpricing premiums, fraud, and overpayment of claims. Roots Automation is tackling this challenge with its advanced AI-powered Digital Coworker, which uses InsurGPT and the Roots Autonomous Workforce Platform to transform unstructured data into actionable insights. This enables insurers to make faster, more confident decisions.
The impact of Roots Automation’s AI solutions is evident across its 35 U.S.-based insurance customers, with notable achievements such as:
- 99% accuracy in data extraction for a regional property and casualty 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
Ned Rand, CEO of ProAssurance Group, highlighted the seamless collaboration with Roots Automation: “Their deep understanding of the insurance industry allows us to quickly align on business objectives. After success with a Digital Coworker in our workers’ compensation division, other areas of our business are exploring potential implementations.”
The rising global demand for Roots Automation’s AI-driven solutions has spurred the need for fresh capital to support its market expansion, product development, and organizational growth. The new funding underscores the confidence customers and investors have in the value Roots Automation brings to the insurance sector.
“Six years ago, we set out to address the unstructured data problem that insurers and brokers face,” said Chaz Perera, Co-Founder & CEO of Roots Automation. “By automating manual processes, we enable top insurance brands to focus on what truly matters—delivering exceptional service to clients.”
Brian Carney, General Partner at Harbert Growth Partners, praised Roots Automation’s achievements: “The leadership team’s deep industry knowledge, coupled with glowing customer feedback, has validated the value they provide. We’re excited to support them as they continue solving complex challenges in the insurance sector.”
