Vishal Sankhala left Ethos, a digital life insurance distributor, earlier this year after the company went public. The executive, formerly with Facebook and Uber, started Outmarket in late 2023 to help insurance agencies and brokers automate paperwork.
The problem
Sankhala told TechCrunch that ninety-five percent of insurance in the U.S. and worldwide is still sold through human agents. He noted the process remains very manual.
“This is a huge opportunity given how massive this industry is,” he said.
Outmarket focuses on commercial insurance. These policies involve deep nuances and custom tailoring for every business. Companies must navigate a complex mix of coverage options, ranging from general liability and workers’ compensation to directors and officers (D&O) liability.
“There are over 250 different types of coverages that are out there, depending on what business you are and what risk you have and what you want to cover,” Sankhala said. “For each of those, the process is very different. The application forms you need to fill out, the documents you need to read.”
What the software does
Outmarket’s AI automates those time-consuming administrative tasks. It helps brokers, namely organisations like Marsh and Aon that sell insurance, quickly evaluate and recommend the best policies. This allows them to focus on work that requires a human touch, such as responding to customers during emergencies.
That value has attracted over 300 insurance agencies since launching a new product 14 months ago. Twenty-five percent of those customers are among the top 100 agencies.
“For insurance, which is typically not a fast-moving industry, it’s quite fast growth,” Sankhala said.
Funding details
Investors have been impressed with the company. Outcast is set to announce that it raised a $34.5 million Series B led by SignalFire. Participation came from Fika Ventures, Permanent Capital Ventures, TTV Capital and Dash Fund.
The new round comes four months after the startup’s $17 million Series A. It valued the company at $355 million, according to a person familiar with the investment.
Competitors
The startup is not alone in building an AI operating layer for insurance brokerages. Other startups trying to help insurance brokers include Fulcrum AI and Further AI.
With the U.S. property and casualty insurance market alone over a trillion dollars in annual premiums, Sankhala believes that Outmarket has plenty of room to grow by helping agencies work faster and smarter.
What it means
The speed of this funding suggests brokers are willing to pay for tools that cut administrative time. The market size remains large enough for several companies to operate there.
