Insuretech Outmarket Raises $34.5M Series B Four Months After Prior Round

Insuretech startup Outmarket secured $34.5 million in a Series B funding round. SignalFire led the financing. Additional participants included Fika Ventures, Permanent Capital Ventures, TTV Capital, and Dash Fund. The new round valued the company at $335 million, according to a person familiar with the investment.

This financing arrives just four months after the startup closed a $17 million Series A round. Vishal Sankhla founded Outmarket in late 2023. Sankhla previously led product at digital life insurance distributor Ethos before it went public. He also worked as an engineering executive at Facebook and Uber.

Artificial intelligence automates insurance paperwork

Outmarket builds artificial intelligence designed to help insurance agencies and brokers automate tedious paperwork. The platform focuses heavily on commercial insurance. Commercial policies require deep nuances and custom tailoring for every business. Companies must navigate complex coverage options including general liability, workers compensation, and directors and officers liability.

Sankhla noted that over 250 different types of coverages exist depending on business type, specific risks, and desired protection. Each coverage type requires distinct application forms and document reviews. The startup automates these time-consuming administrative tasks. This allows brokers to evaluate and recommend policies quickly while focusing on human-centric work like emergency customer service.

Growth accelerates across major insurance agencies

Ninety-five percent of insurance in the United States and worldwide is still sold through human agents. Sankhla described the current process as very manual. He called this a huge opportunity given the massive size of the industry.

The startup launched a new product fourteen months ago. Since then, the platform has attracted over 300 insurance agencies as customers. This customer base includes 25 percent of the top 100 agencies. Sankhla highlighted this as fast growth for an industry that typically moves slowly.

Outmarket competes with other startups building artificial intelligence operating layers for insurance brokerages. Competitors in this space include Fulcrum AI and Further AI. Despite competition, Sankhla believes the market offers plenty of room for expansion. The United States property and casualty insurance market alone generates over a trillion dollars in annual premiums.

Outmarket is set to announce its Series B funding round.