Root Insurance files for IPO

Root filed to go public earlier this week and is targeting a $6bn valuation, according to TechCrunch.

While Lemonade focuses on property and casualty insurance, Root is more at home in the auto and rental insurance space. The first one has been identified as its biggest revenue stream whereas the rental segment of the company is a relatively new addition to the company’s offering, according to the filings.

Root’s solution will sound familiar to those in the industry. It is leveraging artificial intelligence and the internet of things to track users’ driving behaviours. The data is then used to give customers an insurance policy that is more reflective of their driving style.

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