Novella raises $21 million to automate insurance underwriting with AI brokers
Novella has closed $21 million in funding to deploy AI agents across wholesale insurance operations. The Series A round of $16 million was led by Brewer Lane Ventures, with backing from Box Group, Crystal Venture Partners, SV Angel, Avid Ventures, Verissimo Ventures, and Blank Ventures.
The startup targets the excess and surplus (E&S) insurance market-a $150 billion annual segment that handles risks standard insurers won't touch. These include high-rise buildings in hurricane zones, major infrastructure projects, and active construction sites.
Manual work dominates a massive market
Despite the market's size, most E&S underwriting remains manual. Brokers spend nearly half their time on back-office tasks: reviewing hundreds of pages per policy, managing documentation, handling billing and tax filings, coordinating inspections, and processing endorsements.
Novella positions itself as an AI-native wholesale brokerage. Its "vertical AI agents" perform underwriting analysis and operational workflows at the level of experienced brokers, handling submission review, carrier appetite matching, renewals, and policy changes.
The economic shift
The company argues this automation changes brokerage economics. Brokers gain real-time visibility into underwriting status across carriers while spending time entirely on client relationships rather than operational work.
"Pairing world-class human brokers with world-class AI is the formula for success," said co-founder and CEO Max Kane. "Vertical AI that understands the complexity of our industry turns brokers into super-producers."
Expansion and early traction
Founded in 2024, Novella reached a seven-figure revenue run rate five months after launch. The company is expanding its physical footprint with offices in Texas and Florida, and plans a California location.
Novella is headquartered in New York and operates an R&D center in Tel Aviv. The Israel office currently employs about half of its 20-person team, with plans to double that headcount.
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