How Root is Building a Future-Proof Insurance Company

Friday August 24, 2018

How Root is Building a Future-Proof Insurance Company
  (Source:Root Insurance Co.)

We're on the cusp of a monumental shift in how insurance is bought and sold. And many of the big traditional insurance players that seem infallible now may not survive.

Yep, that's a bold statement. The expectations of the most recent generation of consumers are vastly different from the expectations of their parents and grandparents. Young people want ease, simplicity, and speed -- all elements which are noticeably missing from most current insurance processes. What else is missing? Innovation, new technologies, and artificial intelligence.

The playing field is simply transforming faster than industry veterans can adapt. Hence, the burgeoning category of InsurTech and a huge influx of venture capital dollars into insurance startups.

But no enterprise -- even the most innovative -- is ready for the future by default. So, folks at Root have worked hard to design an insurance company that's more than ready for whatever the coming decades bring.

The future is at our doorstep. Here's why Root has the edge.

Root is built on new technology -- not old.

At a time when many insurance systems are run on old computer mainframes, Root's decision to create an insurance company that runs in the cloud and lives completely on an app is a serious disruption to the industry. (A long overdue one.)

Root co-founder Dan Manges has worked tirelessly with the engineering team to create technological solutions that are both efficient and adaptable. They use current technologies, sure, but they always have one eye on the tech that's coming next.

And that's not just because they don't want to be left out in the cold. Root loves new technology. And innovation. Tech is their native playing field. And that simple advantage is already paying dividends in their ability to quickly work around barriers and -- when necessary -- create solutions that have never existed before.

Root is prepared for autonomous vehicles.

The age of the autonomous vehicle is about to be our new reality -- and it's happening fast.

Still, the majority of auto insurers are way behind the curve when it comes to preparing for the self-driving vehicle. Most are coping by putting their heads in the sand and hoping the specter of self-driving cars will go away. (It won't.) Incredibly, some insurers are even raising rates for autonomous vehicles because their pricing models can't handle taking the human out of the equation.

The reality remains the same, though: autonomous vehicles are hitting the roads fast -- and they'll still need to be insured. So Root has intentionally designed the insurance company for self-driving cars. They've built their pricing models to embrace autonomous technology -- not just tolerate it. (In fact, Root was the first insurer in the nation to offer an insurance discount to drivers of self-driving cars.)

Root is building a power team.

A company is only as future-ready as its people. Root has gone to great lengths to build and sustain a team that is ready for anything. While other insurers fill seats, Root's made a mandate of hiring only the very best.

Why? Root believes an agile team will beat a big team every time. That approach has already paid dividends in their ability to quickly adapt and respond to challenges. Root built the skeleton of an entire insurance company with only five engineers. They've rolled out entire campaigns with a handful of people. Quite simply, they don't spend months getting multiple teams and committees on board -- they simply develop a plan and act.

In the future of instant information and technology systems that change by the day, only the fast and agile will survive. And Root has built a company that is lightning fast and getting faster by the day.


In the quest to build a company that is, truly, ready for everything, Root is always looking for input. If you're interested in what they're doing at Root, reach out with a new idea or a thoughtful criticism. That's how they make their company the best it can be.

And if you haven't tried Root, give them a shot download the app and take the test drive. The future is never built by just one person -- or even just one team. By joining Root today, you can be a part of something amazing.


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