One of the most heavily shorted stocks in the market (see paragraph below) is a recent IPO of a company who is looking to disrupt the $266 billion auto insurance industry through telematics and direct to consumer auto insurance that eliminates the legacy factors that are more based on credit score and demographics than on actual driving.
ROOT is the only insurance carrier where 100% of customers have the company’s mobile app installed, which the company uses to collect better data that gives ROOT a “four-year head start” in being able to better price insurance on actual driving behavior. With over 10 billion miles of driving data and hundreds of thousands of actual claims, ROOT has the best data analytics in the industry. As noted in ROOT’s S-1:
“We use an internally developed claims infrastructure to capture comprehensive structured data, contributing to our data advantage when combined with telematics experience and iterated over time. This integrated data set drives a current UBI score that is almost ten times more predictive than an industry-leading UBI provider according to Milliman.”
“We have what we believe is the largest set of miles tracked with proprietary telematics and associated claims, providing what we believe to be a four-year head start and a critical first mover advantage.”