Root is to auto as Lemonade is to home

Root Insurance officially launched to the public today. Think: a Columbus-based mobile-only auto insurer made possible due to $7 million in funding from Drive Capital and reinsurance backing from Munich Re, Maiden Re, and Odyssey Re. The gist behind Root is its desire to only insure only good drivers, which it will determine based on its smartphone app turned telematics device. So while Root still collects all the traditional data elements that incumbents collect such as gender, age, and marital status, it will give greater emphasis to driving records generated via its app. Bottom Line: targeting and attracting good drivers are two very different things. Either way, Munich Re just picked up another partner. Recall, below.


Fine Print: currently available in Ohio. Illinois is coming up next.