Outmarket Raises $34.5M Series B to Expand AI Tools for Commercial Insurance Brokers

Outmarket, an insurtech startup using AI to automate administrative work for insurance agencies and brokers, has raised $34.5 million in Series B funding just four months after closing a $17 million Series A.

The new round was led by SignalFire, with participation from Fika Ventures, Permanent Capital Ventures, TTV Capital and Dash Fund. The financing valued Outmarket at $335 million, according to a person familiar with the investment.

Founder Vishal Sankhla launched Outmarket in late 2023 after previously leading product at digital life insurance distributor Ethos and holding engineering roles at Facebook and Uber.

Outmarket Targets Manual Commercial Insurance Workflows

Outmarket focuses on commercial insurance, where policies can require extensive customisation depending on a company’s industry, risk profile, and coverage needs. Businesses may need to evaluate products ranging from general liability and workers’ compensation to directors and officers liability.

Sankhla said there are more than 250 types of insurance coverage, each with different applications, documents and processes. Outmarket’s AI is designed to automate much of that administrative work so brokers can evaluate policies more quickly and spend more time on customer-facing tasks.

“Ninety-five per cent of insurance in the U.S. and worldwide is still sold through [human] agents,” Sankhla said, describing the current process as highly manual.

More Than 300 Insurance Agencies Use Outmarket

More than 300 insurance agencies have adopted Outmarket since the company launched a new product 14 months ago. Sankhla said roughly 25% of the top 100 insurance agencies are among its customers.

The startup is part of a growing group of companies developing AI tools for insurance brokerages, alongside competitors including Fulcrum AI and Further AI.

The market Outmarket is targeting is substantial. The U.S. property and casualty insurance industry exceeded $1 trillion in direct annual premiums, giving companies focused on broker productivity a large potential customer base.

Sankhla said Outmarket’s goal is to help agencies work faster and more efficiently while leaving tasks that require judgment and personal interaction to human brokers.