General Magic Nabs $7.2M to Cut Insurance Quotes

General Magic has secured US$7.2 million in an oversubscribed seed funding round, bringing its total capital raised to US$8.4 million. The Toronto-based startup aims to drastically cut insurance quote times to under three minutes using its AI agents, addressing the industry's reliance on manual, fragmented processes.

The investment was led by Radical Ventures, with significant participation from a16z Speedrun. New backers include Brendan O'Driscoll, VP of Product at Figma, and Larry James Erwin from OpenAI. Previous investors include Comma Capital and prominent AI and product leaders like Aidan Gomez, CEO of Cohere, and Braze executives Kevin Wang and Spencer Burke.

General Magic's core product, "Cell," deploys proactive AI agents to automate routine insurance tasks. These agents handle pre-quote eligibility, post-quote engagement, and claims coordination, integrating directly with existing broker management systems, quoting platforms, and CRMs. They operate across SMS, iMessage, and RCS, proactively engaging customers and updating records.

Early deployments demonstrate significant impact. Working with a major general insurer, General Magic reduced time-to-quote from approximately 30 minutes to less than three minutes via its SMS-based agent. The company reports its AI agents cut inbound calls by 30% and save teams over 250 hours monthly across various workflows.

Founders Anthony Azrak and Jai Mansukhani, second-time entrepreneurs, developed General Magic after experiencing firsthand the inefficiencies in insurance claims. Their focus is on specializing AI for the insurance sector, including adherence to regulatory frameworks, rather than offering a generic AI solution. This targeted approach seeks to improve customer retention and engagement in an industry where manual follow-through often leads to lost revenue.

Sanjana Basu, partner at Radical Ventures, noted that General Magic offers a way for enterprises to "finally talk to" their locked-in legacy systems, bridging old data with new intelligence. a16z Speedrun's Troy Kirwin emphasized the founders' progress in disrupting legacy industries. Insurance MGA President Pete Tessier highlighted General Magic's adaptability to industry needs, calling it a potential "game changer" for customer experience.