Root leverages telematics and AI for insurance pricing

Root, a tech-native auto insurance carrier, is leveraging telematics to price insurance based on actual driving behavior rather than traditional demographic assumptions. The company utilizes over 36 billion miles of driving data to train proprietary AI models for more accurate risk segmentation.

Root has transitioned toward profitability, reporting $40 million in net income for fiscal 2025 and reducing its gross loss ratio to 58%. The company’s growth strategy relies heavily on embedded partnerships with platforms such as Carvana to drive policy acquisition efficiently.