Pathwork, a San Francisco-based startup focused on transforming the life and health insurance industry, has raised $3.5 million in seed funding. The round was led by Costanoa and joined by Logos Fund, American Family Ventures, Meridian Ventures, and several experienced industry investors. This funding will help Pathwork accelerate the adoption of its AI-powered platform among brokers and insurance carriers across the United States.
The life and health insurance sector is massive, with over $1.1 trillion in annual premiums, yet the way policies are sold and managed has remained essentially unchanged for decades. Brokers still rely on outdated software, manual processes, and fragmented systems that slow down operations and increase the risk of errors. Pathwork aims to solve these challenges by introducing intelligent automation into the core of insurance distribution.
At the heart of Pathwork’s platform is a suite of AI tools designed to streamline how policies are quoted, underwritten, and placed. The Case Underwriter tool analyzes unstructured data from client records and quickly identifies the most suitable carrier options, guiding brokers through the placement process in minutes. The Knowledge Assistant acts as a real-time expert, answering questions about underwriting rules and product guidelines using insurance-specific training data. Meanwhile, the Pre-App Manager helps carriers assess incoming applications more efficiently by evaluating eligibility, documentation requirements, and risk classification.
Pathwork’s founders bring a potent mix of industry and technical experience, having previously scaled a large digital insurance agency and led AI innovation in regulated markets. Since its launch in 2024, the company has analyzed over 10,000 cases and helped retain millions in commission payments. It currently supports more than 65 brokerages and carriers, including well-known names like Highland Capital Brokerage, AIMCOR, Hilb, LifeQuotes, NFP, and Merit Insurance.
The company’s platform is built to meet the high standards of security and compliance required in the insurance industry, while offering a modern, user-friendly experience. By combining predictive and generative AI with structured insurance data, Pathwork is enabling professionals to move faster, reduce administrative burdens, and deliver better service to clients.
KEY QUOTES:
“The last 20 years of digitization made insurance distribution more complex, not less. AI will reimagine everything from how the work gets done to the tools professionals rely on. Pathwork is shaping this future so the people behind every policy can focus back on creating impact and building trust.”
Ian Levinsky, CEO and co-founder of Pathwork
“Pathwork is exactly the kind of company we love to back. Its founders bring a rare combination of industry expertise and technical execution—having scaled a 300-agent digital insurance agency at EverQuote and led AI innovation in regulated markets at Litlingo. They’ve built a solution that applies AI in a way that will change how the industry operates from now on.”
Mark Selcow, Partner at Costanoa
“Highland chose Pathwork for their deep understanding of our challenges and the usability of their products. They’re running the most modern tech stack we’ve seen in this space while meeting the security and compliance demands of our regulated industry”.
Adnan Raja, SVP of Digital Transformation at Highland Capital Brokerage
