Luzern Risk has raised $45 million in Series B funding to accelerate its AI-native captive insurance platform and expand the alternative risk solutions it provides to companies seeking greater control over insurance costs and exposures. Insight Partners led the round, with participation from Trust Ventures and existing investor Caffeinated Capital. Caffeinated Capital previously led Luzern Risk’s seed financing in 2023 and its $12 million Series A in 2025.
The new financing will support product development, additional AI capabilities, operational expansion and a broader range of alternative risk offerings.
Luzern Risk is a full-service captive manager that combines insurance expertise with proprietary technology designed to make captive insurance programs easier and faster to establish, administer and expand.
Captive insurance companies are regulated insurers owned by the organizations whose risks they cover. Instead of transferring all risk to traditional commercial insurers, companies can use captives to create customized coverage, retain underwriting profits and accumulate surplus over time.
The model has historically been associated primarily with large multinational corporations, but Luzern believes rising commercial insurance costs and increased volatility are making captives attractive to a much wider range of businesses.
Approximately $240 billion in gross premium is currently written through captive insurers, representing roughly 10% of the global property and casualty insurance market, according to data cited by Luzern.
Luzern is attempting to accelerate that expansion by using software and AI to automate many of the complicated administrative processes involved in operating a captive.
Its platform works alongside brokers, fronting carriers, reinsurers and advisers and serves customers ranging from middle-market businesses to large publicly traded corporations.
The company said revenue has grown rapidly year over year as demand for its alternative risk solutions has increased.
The Series B will support three primary areas of investment.
Luzern plans to further develop its technology platform and expand its AI capabilities to improve captive administration efficiency and provide owners with deeper insights into their risks.
The company will also systemize more of its internal operations, reducing turnaround times for processes that have traditionally required significant specialized manual work.
Finally, Luzern plans to introduce additional products and services across the broader alternative risk value chain. Management expects the combined investments to drive a significant increase in the company’s growth.
Automation is central to the company’s strategy.
Captive insurance involves a combination of insurance underwriting, regulatory reporting, accounting, claims administration and risk management. By automating more of these workflows, Luzern aims to make captives economically viable for companies that might previously have considered them too complicated or expensive to operate.
The company also sees an opportunity to use AI to improve the quality of risk information available to captive owners.
That could help businesses make more informed decisions about which risks to retain, how much capital to allocate and where traditional insurance or reinsurance remains appropriate.
Luzern’s longer-term ambition extends beyond building software for individual captive owners.
The company wants to create infrastructure that can be used throughout the alternative risk ecosystem, including by brokers, insurance carriers, reinsurers and regulators.
Common technology, standards and products could make it easier for brokers to place risks into captive structures, give carriers and reinsurers better underwriting information and provide regulators with more structured reporting.
Insight Partners views that broader transition as a structural shift within commercial insurance.
The investment firm believes captives are moving from a specialized solution primarily used by large corporations toward a viable risk-financing strategy for a substantially broader group of businesses.
Insight Partners manages more than $90 billion in regulatory assets and has invested in more than 900 companies globally, with more than 55 portfolio companies completing IPOs.
Caffeinated Capital is also increasing its backing of Luzern after supporting the company through its earlier financing rounds.
The new funding gives Luzern additional capital to scale at a time when companies are increasingly looking for alternatives to conventional commercial insurance arrangements.
Luzern’s thesis is that combining specialized insurance expertise with AI-enabled infrastructure can make captive programs faster to launch, less expensive to administer and accessible to a larger segment of the market.
If that transition continues, the company could become an infrastructure provider not only for businesses creating their own captive insurers but also for the brokers, carriers, reinsurers and regulators that interact with them.
KEY QUOTES:
“We set out to make captives more accessible to a broader set of the market, and everything we have learned since has strengthened our conviction that captives will play a far bigger role in risk management than they do today.”
“This investment lets us do what we care about most: deliver better outcomes for our clients, at a much greater scale.”
Gabriel Weiss, CEO and Co-Founder of Luzern Risk
“This is a space where technology can have an outsized impact for clients. Every process we automate makes a captive more efficient to run while increasing quality, and every capability we add gives owners something they could not get before.”
Jonathan York, CTO and Co-Founder of Luzern Risk
“The captive market is undergoing a structural expansion, moving from a tool reserved for large multinationals into a viable strategy for a much broader universe of companies.”
“Luzern is building the infrastructure layer that makes that expansion possible.”
Philine Huizing, Managing Director at Insight Partners
“We led the seed and Series A rounds of Luzern because we believed in Gabriel’s vision of modernizing captives.”
“We look forward to tripling down as this exceptional team continues to execute against the massive opportunity of building the world’s best alternative risk solutions.”
Varun Gupta, General Partner at Caffeinated Capital
