We're on the cusp of a monumental shift in how insurance is bought and sold. And many of the big traditional insurance players that seem infallible now may not survive.
That's a bold statement, but I believe it's a true one. Why? The expectations of the most recent generation of consumers are vastly different than the expectations of their parents and grandparents. They want ease, simplicity, and speed—all elements which are noticeably missing from most current insurance processes. Even more important: the breakneck speed of innovation, new technologies, and artificial intelligence.
The playing field is simply transforming faster than industry veterans can adapt. Hence, the burgeoning category of InsurTech and a huge influx of venture capital dollars into insurance startups.
But no enterprise—even the most innovative—is ready for the future by default. So, at Root, we've worked hard to design an insurance company that's more than ready for whatever the coming decades bring.
The future is at our doorstep. Here's why Root has the edge.
We’re built on new technology—not old.
At a time when many insurance systems are run on old computer mainframes, our decision to create an insurance company that runs in the cloud and lives completely on an app is a serious disruption to the industry. (And I would argue that it's a disruption that was long overdue.)
My co-founder Dan Manges has worked tirelessly with the Root engineering team to create technological solutions that are both efficient and adaptable. We use current technologies, sure, but we always have one eye on the tech that's coming next.
And that's not just because we don't want to be left out in the cold. We love new technology. We love innovation. Tech is our native playing field. And that simple advantage is already paying dividends in our ability to quickly work around barriers and—when necessary—create solutions that have never existed before.
We're prepared for autonomous vehicles.
Still, the majority of auto insurers are way behind the curve when it comes to preparing for the self-driving vehicle. Most are coping by putting their heads in the sand and hoping the specter of self-driving cars will go away. (It won't.) Incredibly, some insurers are even raising rates for autonomous vehicles because their pricing models can't handle taking the human out of the equation.
The reality remains the same, though: autonomous vehicles are hitting the roads fast—and they'll still need to be insured. So we've intentionally designed Root to be the insurance company for self-driving cars. We've built our pricing models to embrace autonomous technology—not just tolerate it. (In fact, we were the first insurer in the nation to offer an insurance discount to drivers of self-driving cars.)
The groundwork we've done in preparing for autonomous technology puts us in a unique position to immediately thrive in a future of self-driving cars—while everyone else struggles to catch up.
We're building a power team.
A company is only as as future-ready as its people. At Root, we've gone to great lengths to build and sustain a team that is ready for anything. While other insurers fill seats, we've made a mandate of hiring only the very best.
Why? We believe an agile team will beat a big team every time.
That approach has already paid dividends in our ability to quickly adapt and respond to challenges. We built the skeleton of an entire insurance company with only five engineers. We've rolled out entire campaigns with a handful of people. Quite simply, we don't spend months getting multiple teams and committees on board—we simply develop a plan and act.
In the future of instant information and technology systems that change by the day, only the fast and agile will survive. And we've built a company that is lightning fast and getting faster by the day.
In the quest to build a company that is, truly, ready for everything, we're always looking for input. If you're interested in what we're doing at Root, I heartily invite you to reach out to us. We're always up for a new idea or a thoughtful criticism. That's how we make our company the best it can be.
And if you haven't tried Root, I also invite you to give us a shot by downloading the app and taking the test drive. The future is never built by just one person—or even just one team. By joining us today, you can be a part of something amazing. We'd be honored to have you.