Pathwork Raises $3.5M to Modernize Insurance with AI-Powered Distribution Platform

What You Should Know:

–  Pathwork, an autonomous distribution platform modernizing the $160 billion life and health insurance market, has raised a $3.5 million seed round led by Costanoa, with participation from Logos Fund, American Family Ventures, Meridian Ventures, and prominent industry angels.

– The funding will help accelerate adoption among brokers and carriers nationwide.

Transforming Manual Processes into Intelligent Systems

Pathwork is an AI-native platform designed to modernize life and health insurance distribution by replacing manual, error-prone processes with intelligent, automated workflows. By integrating structured insurance data with predictive and generative AI, the platform empowers brokers and carriers to underwrite, place, and retain policies faster and with greater accuracy.

The U.S. life and health insurance market exceeds $1.1 trillion annually, yet distribution has remained fragmented and outdated for decades. Brokers are burdened with legacy software, endless paperwork, and complex underwriting rules—slowing down policy placement and impacting customer experience. Pathwork addresses these challenges by enabling brokers and carriers to quote more accurately, reduce costly back-and-forth, and deliver seamless service.

Since its launch in 2024, Pathwork has partnered with over 65 brokerages and carriers—including Highland Capital Brokerage, AIMCOR, Hilb, LifeQuotes (a division of Keystone Agency Group), NFP, and Merit Insurance (a division of Integrity Marketing)—while analyzing more than 10,000 cases and helping organizations retain millions in commission revenue.

“Our industry has seen two decades of digitization, but complexity only grew,” said Ian Levinsky, CEO and co-founder of Pathwork. “AI will reset the way insurance professionals work—shaping tools, improving workflows, and allowing brokers and carriers to return their focus to building trust and delivering impact.”

Pathwork’s AI-Driven Product Suite

Case Underwriter: Automates underwriting by analyzing unstructured data, synthesizing applicant details, and surfacing the most suitable carrier options—guiding brokers from intake to placement in minutes.Knowledge Assistant: Functions as an on-demand expert, instantly answering questions about underwriting rules, product guidelines, and carrier-specific requirements, trained on insurance-focused data.Pre-App Manager: Streamlines carrier evaluations by analyzing incoming cases for eligibility, requirements, and risk classification, helping insurers make faster, more accurate decisions.

By reimagining insurance distribution with AI, Pathwork positions itself as a trusted infrastructure layer for an industry where speed, accuracy, and customer experience determine success.