TLDR: The insurance industry is grappling with the limitations of generic AI models in handling its complex, unstructured data. A new solution, InsurGPT by Roots, offers a domain-trained AI designed specifically for insurers, aiming to revolutionize data processing, risk assessment, and claims management, tapping into a rapidly growing InsurTech market.
The insurance industry, a sector historically reliant on vast amounts of complex and often unstructured data, is finding that generic Artificial Intelligence (AI) solutions fall short of its unique demands. While many companies are eager to adopt generative AI, the inherent complexities of insurance processes necessitate a more specialized approach. This challenge has led to the development of domain-trained AI, such as InsurGPT by Roots, designed to address the industry’s specific needs.
Chaz Perera, co-founder and chief executive of Roots, brings over 14 years of experience within the insurance sector, having served in leadership roles in underwriting, claims operations, and as a chief transformation officer at a major global commercial lines carrier like AIG. Perera observed firsthand the industry’s struggle with automating the immense volume of unstructured data—ranging from emails with multiple attachments and faxes to written notes and non-standardized forms. Traditional methods, involving human experts manually reading and interpreting these documents, have been inefficient, time-intensive, and prone to errors, costing the sector billions of dollars annually for the past half-century.
Perera recognized that AI capable of truly understanding unstructured data could significantly ‘move the needle across the industry.’ He noted the difficulty of solving this problem within individual insurance companies due to competing priorities, leading Roots to focus on a broader solution. “It is hard to solve that problem within the four walls of an insurance company,” Perera observes, “because there are a multitude of challenges that need to be solved, and this might not get priority. But we felt like if you could solve for unstructured data, you could substantively, move the needle across the industry. That’s why we started Roots, not to singularly help one company, but help all insurance companies at the same time.”
Roots’ InsurGPT is positioned to empower insurance professionals—underwriters, claims specialists, and brokers—by providing instant access to precise data, enabling more effective decision-making. In the insurance business, profitability and growth are intrinsically linked to accurate risk assessment, policy pricing, and minimizing claim leakage. The ability to quickly collate data from diverse sources is paramount to making sound decisions in these areas.
The global InsurTech market underscores the potential for such innovations. A recent report from Fortune Business Insights estimated the market at $15.56 billion in 2024, with projections to reach $19 billion in 2025. This growth highlights the increasing demand for technological solutions tailored to the insurance landscape.
Roots emphasizes a holistic approach to digital transformation, aiming to solve problems ‘end to end’ to ensure consistent value. Perera stated, “We’re not trying to solve like a sliver of a process or a sliver of a problem. We want to solve it, end to end because we fundamentally believe that’s the only way to get to value consistently.” The company underwent an extensive rebranding in 2025, with Perera explaining, “This rebrand isn’t just about a new name—it’s about where we’re going and the technology we’re pioneering.”
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As AI continues to advance rapidly, expanding from basic data processing to agentic and generative capabilities, and becoming more ‘cognitively human,’ specialized applications like InsurGPT are becoming critical. While AI still requires human oversight, its ability to process data, make decisions based on instructions, and converse fluently with users is transforming the potential use cases within insurance.
