Pathwork, an autonomous distribution platform designed to modernize the $160 billion life and health insurance market, has raised $3.5 million in seed funding. The round was led by Costanoa, with additional participation from Logos Fund, American Family Ventures, Meridian Ventures, and several well-known industry angel investors. This investment will help Pathwork accelerate the adoption of its platform among brokers and insurance carriers nationwide.
The life and health insurance industry impacts millions of Americans, yet the way policies are sold has changed very little over the past several decades. The distribution process remains fragmented, heavily manual, and prone to errors. Brokers often find themselves working with outdated software, chasing paperwork, and navigating complex underwriting rules. In a market where U.S. life and health premiums surpass $1 trillion annually, the ability to work quickly, accurately, and efficiently can make a significant difference in both service quality and business performance.
Pathwork addresses these challenges by replacing slow, manual workflows with intelligent, automated systems. Its technology helps brokers and carriers move faster, generate more accurate quotes, reduce unnecessary back-and-forth, and deliver a smoother, more reliable customer experience.
The company’s platform combines predictive and generative AI to create a seamless connection between brokers placing policies and carriers making underwriting decisions. Its product suite includes several specialized tools. The Case Underwriter automates the underwriting process by analyzing unstructured data, compiling applicant details, and identifying the best-fit carrier options, guiding brokers from intake to placement in just minutes.
The Knowledge Assistant serves as an on-demand expert, instantly answering questions about underwriting rules, product guidelines, and carrier-specific requirements, all based on insurance-focused data. The Pre-App Manager helps carriers evaluate incoming cases more efficiently by analyzing data to determine eligibility, requirements, and risk classifications.
Since its launch in 2024, Pathwork has processed more than 10,000 cases and helped retain millions of dollars in commission payments for its clients. The company now supports over 65 brokerages and carriers, including well-known names such as Highland Capital Brokerage, AIMCOR, Hilb, LifeQuotes (a division of Keystone Agency Group), NFP, and Merit Insurance (a division of Integrity Marketing).
How the funding will be used: With this new funding, Pathwork is positioned to expand its reach, enhance its technology, and continue its mission to modernize the way life and health insurance is distributed—making the process faster, more accurate, and more efficient for everyone involved.
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
