Redefining the claims experience: a note from Root’s CEO

Three years ago, we set out to unbreak the car insurance industry. We knew traditional car insurance companies’ reliance on old technology and overly complex processes wasn’t serving customers well. Our goal: reinvent the industry and be the first car insurance company to give people a price based primarily on how they drive, not who they are. But our aspirations don’t stop there.

We started this company to redefine the insurance process experience from beginning to end, so that every interaction our customers have is fair and easy. That’s why we decided to go through the exhaustive process of becoming a stand-alone insurance carrier.

The response to Root has been overwhelming. People are embracing our fair pricing, and they’re saving money. I love hearing customer stories about how Root savings have helped to improve their lives. My team and I are grateful to everyone who took a chance on us and are hopefully being rewarded for that choice.

Our growth has not been without challenge.

Our claims experience hasn’t been living up to our standards—up to my standards. Claims is ultimately the most important aspect of the insurance experience. Insurance is fundamentally about being there for people during tough times, and that is a responsibility that I take very seriously.

We chose to initially work with a third party to handle our claims so that we could focus on building the infrastructure Root needed to grow. Using a third party is not unusual for the insurance industry, but it was never our intent to outsource claims for the long haul. As our claims volume grew, it became increasingly apparent that a third party would not deliver the experience we wanted for our customers and for the future of Root.

We knew it was time to build that experience ourselves.

So, over the summer we began to build our own claims department from the ground up. We hoped to continue working with our external partner through the transition, but had good reasons—on behalf of our customers—to speed up. We made the decision to move all claims in-house immediately, but this created some delays in our response time and a customer experience that doesn’t meet our standards.

As a result, the Root claims experience for many people has been frustrating. My team and I are personally committed to doing better. Because we can and we will.

We’ve taken an all-hands-on-deck approach to address this situation quickly and aggressively. We have teams of people fixing the delays and addressing individual customer needs.

My executive team and I are personally calling the most affected customers to address their individual concerns.

We are building Root for the long term, and that means doing things the right way, every time. There will inevitably be bumps in the road along the way, but we remain focused on fixing all issues to ensure they don’t happen again.

Insurance is a noble industry at its core. When someone has an accident, it’s our job to help as quickly and easily as possible. I promise that we will fully resolve this situation for all affected customers, and will continue to build the claims experience our customers expect and deserve.

At Root, we never stop looking for ways to better serve our customers. They are the lifeblood of our company and their experience is at the heart of everything we do. We are committed to building a different type of car insurance company for them, one that is fair, affordable, and easy at every step along the way.

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