Vishal Sankhala, who previously led product at the digital life insurance distributor Ethos before its public debut earlier this year, made a significant career move in late 2023. The seasoned engineering executive—whose résumé includes stints at Facebook and Uber—departed Ethos to found Outmarket, a startup leveraging AI to help insurance agencies and brokers eliminate their cumbersome paperwork. As Sankhala points out, a staggering 95% of insurance in the U.S. still relies on manual processes, representing an enormous opportunity given the sheer scale of the industry.

Outmarket has chosen to specialize in commercial insurance, recognizing that these policies demand intricate customization and deep understanding for each individual business. Companies in this space must juggle a complicated array of coverage types—everything from general liability and workers' compensation to directors and officers (D&O) liability. Sankhala notes that there are over 250 distinct coverage varieties available, depending on the nature of the business, its risk profile, and what it wants to protect. Each one comes with its own unique process, requiring different application forms to complete and different documents to review.

Outmarket's AI technology takes over these labor-intensive administrative duties, enabling brokers—organizations like Marsh and Aon that sell insurance—to rapidly assess and recommend optimal policies. This frees them up to concentrate on tasks that genuinely need a human touch, such as supporting customers during emergencies. The value proposition has proven compelling: since launching a new product 14 months ago, Outmarket has attracted more than 300 insurance agencies as customers, including 25% of the top 100 agencies. Sankhala observes that for insurance—an industry not typically known for rapid change—this represents remarkably swift growth.

Investors have taken notice as well. Outmarket is preparing to announce a $34.5 million Series B round led by SignalFire, with additional backing from Fika Ventures, Permanent Capital Ventures, TTV Capital, and Dash Fund. This new funding, which arrives just four months after the startup's $17 million Series A, places the company's valuation at $355 million, according to a person with knowledge of the investment.

Outmarket isn't the only player building an AI operating layer for insurance brokerages—other startups like Fulcrum AI and Further AI are also pursuing this space. However, with the U.S. property and casualty insurance market alone generating over a trillion dollars in annual premiums, Sankhala is confident that Outmarket has ample opportunity to expand by helping agencies operate more efficiently and intelligently.