Insuretech Outmarket raises $34.5M just months after prior round

Vishal Sankhala, formerly a product leader at Ethos, a digital life insurance distributor, departed to found Outmarket in late 2023. Sankhala, previously employed at Facebook and Uber, leveraged his engineering expertise to address a prevalent issue in the insurance industry. According to Sankhala, 95% of insurance in the U.S. and worldwide is still sold through human agents, despite the process's manual nature.

Outmarket, using artificial intelligence, aims to automate the tedious paperwork for insurance agencies and brokers, a market valued at over a trillion dollars in annual premiums. The AI platform specializes in commercial insurance, which involves intricate coverage options like general liability, workers' compensation, and directors and officers (D&O) liability.

Outmarket assists brokers, primarily from firms like Marsh and Aon, in swiftly evaluating and recommending the most suitable policies. This enables the brokers to focus on tasks requiring a human touch, such as customer support during emergencies. Since its launch 14 months ago, Outmarket has attracted over 300 insurance agencies, including 25% of the top 100.

The AI-driven startup has successfully raised $34.5 million in a Series B round, led by SignalFire and joined by Fika Ventures, Permanent Capital Ventures, TTV Capital, and Dash Fund. This investment, coming four months after a $17 million Series A, valued Outmarket at $355 million. Despite the insurance industry's traditionally slow-moving nature, Outmarket's rapid growth reflects the growing confidence in its innovative approach to streamlining and enhancing insurance brokerage processes.