Root Insurance and Tractable, ranked as two world’s 50 largest insurtechs, have announced a partnership, with Root using Tractable's artificial intelligence platforms in the claims operations.
Root will “integrate Tractable's AI solutions to streamline and accelerate its material damage claims processes,” based on a Tractable press release issued Friday.
Root will launch their bond with Tractable’s AI Subro, so it uses to assess and react to subrogation claims, Tractable said. Root wouldn't say if, or when, it could begin to use Tractable’s AI Estimating product for claim settlement processes with consumers.
“By integrating Tractable's AI, Root will accelerate its end-to-end claims process, starting with subrogation,” Tractable said.
Root, a smartphone telematics-based insurer ranked 28th in dimensions among the Sonr Insurtech 100, sells car insurance in 38 states, based on its website. The publicly-traded company had 380,836 auto insurance polices in force in 2022, based on its Q3 letter to shareholders.
“Implementing AI effectively will set generation x of insurers aside from incumbents by creating greater efficiencies and a frictionless experience for consumers,” Mark LeMaster, chief claims and customer support officer for Root, said in a statement. “The industry-leading accuracy and breadth of Tractable’s solutions made for a clear choice as our AI partner and serves us well within our mission to deliver world-class technology if this matters most for our customers.”
“It's been exciting to watch Root's rapid growth and to now partner together and help drive Root’s frictionless customer experience forward. As the technology-first, customer-centric carrier, Root’s adoption of solutions that will get its drivers back on the highway faster after accidents demonstrates to the industry that AI may be the future,” Alex Dalyac, co-founder and CEO of Tractable, said inside a statement.
Subrogation is the process through which two insurance companies resolve the division of expenses when several parties take part in a claim. AI Subro reviews the information provided by third parties and evaluates the damage, recommended repairs, and associated costs.
The platform supplies a process for challenging inaccuracies and inconsistencies, and supplying supporting evidence, based on Tractable’s website.
“Tractable's AI Subro platform reviews incoming subrogation demand packets and makes recommendations to an insurer's subrogation team, that has the final say on whether to accept, modify, or reject the AI's recommendations,” Tractable’s Head of Automotive, Jimmy Spears, told Repairer Driven News. “Generally, we see that human adjusters agree with the AI 80-90% of the time or more, with respect to the kind of recommendation.”
“Subrogation typically involves claims which have recently been settled using the driver. The in-person inspection has been completed by the time Tractable's AI Subro platform receives the demand for review,” Spears said.
Through a Tractable spokesperson, Root declined to respond to any queries from RDN about the partnership with Tractable. However it seems likely the insurer intends to automate the claims process by making use of other software, for example Tractable’s AI Estimating, too.
The Root/Tractable partnership is the latest inside a series for the AI provider. In May, Tractable announced it had reached an agreement with No. 2 U.S. auto insurer Geico to use Tractable's AI Review product to “within seconds” verify the quality of existing sheets.
“Geico customers know us for our speed and services information and value,” Geico CEO Todd Combs said inside a statement at that time. “Tractable's artificial intelligence solution delivers both, helping us review estimates more quickly and accurately, getting our customers back on the road faster.”
In January 2022, Mitchell announced a partnership with Tractable that incorporates the AI Estimating software into the Mitchell Intelligent Open Platform.
“We're excited to mix our solutions to accelerate accident recovery,” Tractable CEO Alex Dalyac said at the time. “Mitchell's collision repair data and industry expertise are known to be considered a reference in North America, as are their affiliate's GT Motive in Europe. Insurers now have access to a solution that's best of breed on both AI and repair estimatics. This collaboration brings a brand new option to the industry.”
The deal allowed the use of Tractable's AI photo estimating within Mitchell Intelligent Estimating, which Mitchell referred to as an “advanced claims automation solution.”
At least one U.S. insurer, The Hartford, has said it is using Tractable’s AI Estimating through Mitchell.
Root late last year announced a partnership with online used car retailer Carvana, giving it the opportunity to capture customers at the pos. Included in the deal, Carvana announced that it would invest approximately $126 million in Root.
Tractable could not speak to Root’s plans, but spoke towards the accuracy of their photo-based AI estimating process.
“Our AI is as accurate like a human appraiser or better, and it constantly improves as it learns with increased images and applications,” Spears told RDN. “In general, we have seen that human appraisers accept each other 60-70% of the time, and they accept the AI 80-90% of the time, suggesting the AI is much more consistently in-line with appraisal standards.
“It can also do tasks that humans can't,” he explained. “For example, the AI can produce a prediction based on damage that's not obvious or visible to a human, but can be acquired by computer vision within the image. Additionally, it may understand harm to cars that it isn't acquainted with, such as newer models that it hasn't seen before.”
Tractable declined to state if it is AI platform makes use of OEM data in the estimating process.
