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Root Insurance, a US-based insurtech, has filed for an IPO

Root Insurance, a US-based insurtech, has filed for an IPO

  •  Root Insurance is targeting a $6 billion valuation in an upcoming IPO.
  • It’ll likely succeed thanks to its improving loss ratio and the increasing demand for usage-based auto insurance.
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The US-based insurtech has filed for an IPO, per TechCrunch. Root has raised a total of $523 million in funding to date and is valued at $3.7 billion, though it’s targeting a $6 billion IPO valuation. The full-stack insurtech sells auto, renters, and homeowners insurance, and is currently available in 29 states.

the global usage based insurance market

Root Insurance is targeting a $6 billion valuation in an upcoming IPO.

Business Insider Intelligence


Root is disrupting the $266 billion auto insurance industry through its use of IoT and AI, and has expanded its coverage to break into other markets. The insurtech collects users’ behavioral data via its mobile app to measure their driving behavior, such as hard braking and speed, to more accurately price each user’s policy. Good drivers save up to 52% compared with traditional insurance options.

The data is processed through machine learning (ML) and helps Root avoid high-risk drivers, decreasing the number of claims it has to pay by 45%. Root expanded its coverage to renters and  homeowners insurance last year, aiming to cross-sell these policies with auto, thus generating additional premiums without having to substantially raise marketing costs. In addition, users can customize and purchase policies, find their insurance card, make changes to their policy, and file a claim all through the Root app—creating a seamless customer experience.

We expect the IPO raise to be a success, as Root is improving its financials and the coronavirus pandemic is encouraging the use of usage-based insurance.

Root’s loss ratio is decreasing

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840,000 more workers filed for unemployment insurance last week

840,000 more workers filed for unemployment insurance last week

Another 840,000 Americans sought unemployment insurance last week, according to the latest report Thursday from the U.S. Department of Labor.



a person standing in front of a store: A woman checks her cell phone as she walks past a store closing sign in the Park Slope section of N.Y, Oct. 5, 2020.


© Erik Pendzich/REX via Shutterstock
A woman checks her cell phone as she walks past a store closing sign in the Park Slope section of N.Y, Oct. 5, 2020.

This week’s claims do not include the most up-to-date data from California, which has temporarily stopped accepting new jobless claims in order to work through a backlog and implement fraud prevention technology, the Labor Department said. Instead, the figure from California will reflect the level reported during the week prior to the pause in new applications.

MORE: Unemployment rate slips to 7.9% in last jobs report before election

Still, the initial claims data reflect a labor market still suffering some six months into the coronavirus pandemic. This is the 29th straight week of weekly unemployment claims coming in above the pre-pandemic record set in 1982.



a person standing in front of a store: A woman checks her cell phone as she walks past a store closing sign in the Park Slope section of N.Y, Oct. 5, 2020.


© Erik Pendzich/REX via Shutterstock
A woman checks her cell phone as she walks past a store closing sign in the Park Slope section of N.Y, Oct. 5, 2020.

While the number of new claims has fallen some since peaking in late March, they have stagnated at unprecedented levels not seen before the COVID-19 crisis. The average for the past four weeks was 857,000 new claims a week, according to the DOL.

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Moreover, the total number of people claiming unemployment benefits through all programs was 25.5 million as of the week ending Sept. 19, the DOL also said Thursday. That figure was 1.4 million for the comparable week in 2019.

The states that saw the largest increase in new jobless claims for the week ending Sept. 26 were Maryland, Illinois and New Jersey, according to Thursday’s report. Meanwhile, the states with the largest decreases

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