Root Insurance, a third-party API aims to enable software developers to easily access insurance licences and the full range of insurance and banking-related services needed to launch new digital products.
According to Louw Hopley, CEO of Root, “Root Insurance is like cloud services for the insurance industry. It gives software developers all the building blocks they need to create and launch a fully compliant insurance product in a matter of days. The platform not only reduces costs and time to market drastically, it also takes care of administering the insurance policies – everything from issuing policies to collecting premiums and handling claims.”
Root Insurance aims to make designing and launching a new insurance product easy and fast from the usual process which takes months and requires significant investment into accessing an insurance licence, upfront costs and navigating complex compliance requirements.
Root Insurance makes it viable to deliver more value for money on low-premium products, especially benefiting lower-income families who might otherwise not be able to afford insurance.
Root Insurance is a partnership between Root and listed financial services group MMI Holdings Limited (MMI). MMI has provided Root with vital support, ranging from expert guidance to the provision of the underlying insurance licence.
“Large traditional insurers typically struggle to drive digital innovation at scale,” says Jonathan Stewart, Head of Exponential Ventures, MMI’s disruptive innovation unit. “As an organisation, we have the regulatory licences to operate, complex insurance expertise and immense administrative and distribution abilities. With this partnership, we’re exposing this ‘hard stuff’ to innovators who often have greater agility, creativity and customer insights.”
Root Insurance is fully operational and is open to anyone, including individual developers, startups, established brands and insurance incumbents.