US InsurTech Root is set to complete a $350 million funding round at a valuation of $3.7 billion, led by new investors Coatue Management and DST Global.

This latest investment comes about a year after it raised $100 million and secured unicorn status.

Root focuses on selling automotive insurance using artificial intelligence-based technology via users’ smartphones to measure driving behaviour - such as braking, speed of turns, driving times and route consistency - and determine individual risk to accurately price their policy.

The funding will be used to fuel growth and marketing efforts.

Root earned $133.4 million in insurance premiums in the first half of 2019 – 12 times more than during the same time last year.

Juniper Research analysis suggested that by 2024, global insurance premiums underwritten by AI will surpass $20 billion, up from an estimated $1.3 billion this year, while cost savings will grow from $340 million to $2.3 billion over the same period.

Increased use of telematics and Internet of Things (IoT) devices will drive the growth of AI in the insurance industry and help streamline processes. Juniper noted that global revenue from telematics in the insurance industry is likely to grow from $1.2 billion to $5.4 billion by 2024.

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