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Research Outline
Prepared for Nicole L. | Delivered September 12, 2019
Root Insurance
Goals
To understand Root's expansion in the DTC insurance industry.
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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
.
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Prepared By
Megan B.
3936 assignments | 5.0