Just before the end of 2017, Arkansas Insurance Commissioner Allen Kerr granted his 30th certificate of authority of 2017, to a new InsurTech company, to begin selling private-passenger auto insurance to Arkansans through its app-based platform.
Commissioner Kerr granted authority to Columbus, Ohio-based Root Insurance Company to sell property and casualty (excluding workers' compensation) products in Arkansas. It is a private passenger auto insurance company that began operations in June 2016.
Root is wholly owned by IBOD, Inc., and currently is licensed in 18 states. The company's policies are reinsured by Munich Re, Maiden Re, and Odyssey Re.
Root uses telematics data, provided by consumers through its smartphone application, to price insurance coverage. Customers will use the application to scan their driver's license, which Root uses to gather data, including their driving history and other demographic information. The application will turn the customer's phone into a telematics device, gathering additional data about the customer's driving habits by measuring driving speeds, acceleration and breaking patterns, changing lanes, and other activities related to automobile accidents.
In a statement, Commissioner Kerr said, "We are proud to welcome another InsurTech company to Arkansas. Root is a company that can help the insurance industry catch up with the tech curve, which will help Arkansas drivers see lower premiums based on their own good driving habits. The Arkansas Insurance Department will seek out more companies embracing technology as part of our new business recruitment efforts for 2018."
Commissioner Kerr has granted 65 companies the authority to do business in Arkansas since becoming commissioner in 2015.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].