Root Insurance
Delivered September 12, 2019. Contributor: Megan B.
Goals
To understand Root's expansion in the DTC insurance industry.
Early Findings
- In January, Root announced it was continuing its rapid expansion into 2019 with the goal of becoming a nationwide offering by 2020. To do so, it was increasing its employee count by 150%.
- Over 2018, Root expanded from 10 to 22 states, grew its premiums to $100 million (an increased of 2,600% compared to 2017). As of end of Q2 2019, this has increased to $280 million.
- In 2018, Root launched in these states: Louisiana, Montana, New Mexico, Arkansas, Delaware, Missouri, Iowa, North Dakota, Maryland, Oregon, Nebraska, South Carolina
- 2019 plans for Root involve expanding to these states: New Hampshire, Connecticut, West Virginia, North Carolina, Georgia, Alaska, Hawaii, California, Nevada, Tennessee, Virginia and Washington, D.C.
- When Root hit California in May, it stated it was available to 65% of US drivers. As of today, Root is currently licensed in 29 states.
- Going backwards, Root initially launched in Ohio and Arizona in October 2016. Its first expansion was into Oklahoma and Indiana in July 2017.
- By May, Root had 550 workers with plans to ultimately have 863 employees.
- As part of its expansion, Root moved its headquarters to a new, larger facility.
- In April, Root was part of a larger partnership with SoFi to help the company expands its portfolio to the insurance space. SoFi partnered with Lemonade, Root and Ladder to be able to offer insurance products on its platform.
- Just last week, it was announced that Root has closed another round of funding for $350 million and achieved a $3.65 billion valuation.
Proposed next steps:
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