The latest capital injection is in response to substantial global insurance market demand for the company’s offerings. Credit: Poca Wander Stock/Shutterstock.

Roots Automation, a pioneer in AI for the insurance sector, has raised $22.2m in its Series B financing round.  

Harbert Growth Partners led the fundraise, with continued support from MissionOG, Vestigo Ventures and Liberty Mutual Strategic Ventures. 

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The investment is expected to expedite the company’s market expansion and organisational growth. 

It will also help Roots Automation to support product development efforts, particularly for its AI-powered Digital Coworker and InsurGPT, a generative AI model tailored for the insurance industry.  

Roots Automation co-founder and CEO Chaz Perera said: “Six years ago, Roots set out to solve the unstructured data problem that insurers, third-party administrators (TPAs), brokers and agents all face. 

“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.” 

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The latest capital injection comes as a response to substantial global insurance market demand for Roots’ offerings.  

The company said that its AI solutions are designed to unlock the potential of unstructured data, which comprises about 80% of all data within the insurance industry and includes submissions, legal demands and medical records.  

This type of data, when not utilised effectively, can cost insurers up to $100bn annually due to under-pricing premiums, overpaying claims and insurance fraud, Roots Automation added.  

Roots Automation’s Digital Coworker leverages the company’s proprietary generative AI (GenAI), InsurGPT, in conjunction with the Roots Autonomous Workforce Platform.  

This combination is engineered to convert unstructured information into clear, actionable insights, which then enables insurers to make more informed and quicker decisions. 

Since its inception in 2018, New York-based Roots Automation has made significant strides in the US insurance market, serving 35 customers with notable results.  

Some of the achievements, as highlighted by Roots Automation, include a 99% accuracy rate on data extraction for an East Coast-based regional property and casualty (P&C) insurer and a 97% reduction in handling times for a US-based commercial P&C and workers’ compensation carrier.  

Harbert Growth Partners general partner Brian Carney said: “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 organisations. 

“We were extremely impressed by Roots’ glowing customer feedback and validation of the value created across its customer base.”