Transforms operations for leading insurance brands with AI and machine learning technology; brings an integrated, holistic approach to automation that aligns with insurers' human workforce
NEW YORK, Nov. 1, 2022 /PRNewswire/ -- Roots Automation, creator of advanced, intelligent Digital Coworkers for the insurance industry, today announced the closing of $10 million in a Series A round of funding. MissionOG led the round, supported by Liberty Mutual Strategic Ventures, Vestigo Ventures and CRV.
Roots Automation has established a new category in business process automation. The company's Digital Coworker leverages AI and machine learning to improve insurance operations, empowering insurance carriers to improve margins and increase operational efficiency. An alternative to robotic process automation (RPA) technology, which has fallen short of its promise to automate tasks in unstructured environments, Roots Automation's Digital Coworker ingests and analyzes both structured and unstructured data to work seamlessly with a company's human workforce - addressing a $100+ billion market opportunity to improve insurance operations through automation and AI.
Roots Automation has seen massive customer growth since announcing its seed funding in October 2020, largely from leading insurance brands for which RPA has failed. Its Digital Coworker improves claims management efficiency, which represents a $67 billion market opportunity with P&C US carriers alone; and improves the average 8% premium leakage seen by the standard P&C insurer - or roughly $57 billion annually.
"AI and machine learning are the key in enabling effective automation," said Chaz Perera, co-founder and CEO, Roots Automation. "Our latest capital represents a major milestone in our mission to make work more human. It will fuel product development and market expansion so we can further support insurers that are dealing with increased margin pressure and declining operational efficiency. In 100% of the deals we win, the customer has considered or already purchased RPA and instead gone with a Digital Coworker, lessening their dependence on employees at a time when keeping their workforce happy and engaged is most critical."
According to the "State of Operations and Outsourcing" report by HfS Research, supported by KPMG, 44% of Global 2000 enterprises are dissatisfied buyers of RPA. By contrast, Digital Coworkers focus on ensuring harmony in the employee/digital coworker ecosystem, handling automated tasks while freeing an insurer's human workforce to do customer-focused, meaningful work, increasing job satisfaction. This new paradigm comes at a critical time for the historically slow-to-innovate insurance market, which is struggling to fill jobs and retain workers in a talent crisis, and amid rising costs. Digital Coworkers increase companies' agility and ability to exceed customer expectations, without requiring them to substantially rethink the way they work. This leads to a happier workforce while maximizing revenue.
"We are excited to provide expansion capital to Roots Automation, as they are solving some of the biggest problems facing insurance companies," said George Krautzel, managing partner of MissionOG. "Roots' founding team's DNA in insurance has guided them to build a vertical solution to provide value and scale where horizontal RPA solutions have not succeeded. Their Digital Coworkers offer a positive experience for customers and human employees alike, while managing day-to-day insurance business proceeds. We look forward to seeing the Roots team expand their value to customers and build on their leadership position within their industry."
"Roots Automation has helped American Exchange automate and improve a lot of our internal data validation and data entry processes," said Andrew Hetzler, CEO of American Exchange. "This has both reduced our workload and has reduced human data entry error to almost zero. The best part is that our process with Roots Automation has allowed our agents to do what they do best, and that is talk to people and help them with their individual and Medicare health insurance decisions."
About Roots Automation
Roots Automation combines machine intelligence and human ingenuity to create intelligent Digital Coworkers, providing organizations with AI-powered, digitized employees that can think, read and intuit like people. Digital Coworkers are pre-trained to understand and interact with documents, systems and processes commonly found in insurance, healthcare and banking. They are always on, ultra-secure and deliver ROI from day one - freeing a human workforce of inefficient, soul-destroying work, increasing their productivity and job satisfaction. Roots Automation is based in New York and was founded in 2018. For more information, visit https://www.rootsautomation.com/.
MissionOG partners with high-growth businesses that have proven models in segments where we have had success as operators and investors, including financial services and payments, data platforms, and software. We apply our experience and capabilities to a group of highly skilled and passionate entrepreneurs whose businesses are on the cusp of exponential growth. The firm is managed by operators and investors who have effectively built early to growth stage businesses and guided them through successful acquisitions. MissionOG is headquartered in Philadelphia. For more information visit https://missionog.com/.
Market Street Group for Roots Automation
SOURCE Roots Automation Inc