Root is betting on behavioral-based auto insurance to help it take on the incumbents that dominate the auto insurance industry.
Ohio-based auto insurtech Root went public this week at a valuation of about $6B. Root has been a pioneer in the behavior-based, automobile telematics insurance space and has seen consistent double-digit percentage growth since its founding in 2015.
However, despite the progress it has made, Root’s insurance book is currently dwarfed by those of leading auto insurance carriers. As of 2019, Root had captured only about 0.2% of the US auto insurance market, according to NAIC. This market share gap points to some of the challenges facing the company as it goes public.