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1Fort, a New York-based startup, has secured $7.5 million in seed funding to revolutionize how small businesses obtain commercial insurance via its AI-driven platform. The company reported an impressive 200% increase in revenue month-over-month in 2024, highlighting its potential to address the challenges faced by millions of small and medium enterprises that are often underinsured due to inefficient manual processes.
The funding round, which was oversubscribed, was led by Bonfire Ventures and saw contributions from notable investors including Draper Associates, Karim Atiyeh, founder of Ramp, as well as existing backers like Village Global, Operator Partners, 8-Bit Capital, Character VC, and Company Ventures. To date, 1Fort has raised a total of $10 million.
According to Anthony Marshi, co-founder and CEO of 1Fort, there is a glaring disconnect in the insurance market; brokers manage insurance for about 70% of businesses, yet a staggering 75% of these businesses are inadequately insured. Many brokers are entangled in antiquated workflows characterized by cumbersome email exchanges, PDF documents, and spreadsheets. Marshi emphasized that 1Fort aims to transform this landscape by automating the insurance placement process, significantly expediting what was traditionally a lengthy endeavor.
Streamlining Insurance Processes with AI
The platform harnesses the power of artificial intelligence to simplify the most tedious parts of commercial insurance processing. Once brokers input client information, the system takes over—automatically filling out applications, retrieving quotes from various carriers, analyzing coverage, and handling payment processes.
Marshi likened 1Fort’s AI to an autopilot for insurance submissions, emphasizing its ability to handle operational tasks with remarkable speed, such as auto-filling applications and conducting instant quote comparatives. The outcomes are tangible, with brokers reportedly saving up to two hours on each submission while boosting their bind rates by 20%. Such efficiency has spurred a rapid uptake of the platform by insurance professionals.
“The results speak for themselves; brokers are finishing submissions faster than ever and securing more contracts,” Marshi stated.
A Comprehensive, Multi-Carrier Platform
1Fort is tackling commercial insurance fragmentation by partnering with various leading brokerages and A-rated carriers including Arch, Tokio Marine HCC, and Markel. Its platform now provides coverage solutions across numerous business lines and is fully licensed in all 50 states.
Originally focusing on cyber insurance, 1Fort has broadened its offerings to include technology errors and omissions, professional liability, general liability, and workers’ compensation, among others.
“1Fort is not just solving a single issue, it’s a comprehensive platform addressing every phase of the insurance process from quoting to binding to risk management,” Marshi said. Unlike other insurtech companies that may seek to exclude brokers, 1Fort empowers them by streamlining the process.
Travis Hedge, co-founder of Vouch, a brokerage catering to startups, praised the platform’s impact: “1Fort has enabled our team to improve efficiency and deliver superior products to our clients.”
The growth trajectory of 1Fort is indicative of a wider transformation within the insurance sector, where automation and AI technologies are superseding long-held manual practices.
Jim Andelman, managing director and co-founder at Bonfire Ventures, remarked on the significant potential within this niche: “The development of AI-enabled service-as-software solutions to modernize existing workflows is a highly promising endeavor in the realm of insurance.”
The commercial insurance market represents an expansive opportunity, with yearly premiums amounting to hundreds of billions of dollars within the U.S. Still, a notable portion of the industry continues to rely on outdated technologies.
Marshi reflected on the reaction among brokers who have experienced 1Fort: “After navigating various insurtech tools that fell short, when brokers finally interact with a platform that seamlessly executes sophisticated workflows, it’s almost a revelation. In an era filled with lofty promises, hearing that ‘it just works’ has validated our approach immensely.”
1Fort’s Vision for the Future
With the new wave of funding secured, 1Fort aims to expand its artificial intelligence features, grow its team, and seek additional partnerships with carriers. The company has set its sights on ambitious goals for the near future.
“Our objective is to establish the quintessential AI operating system for commercial insurance,” Marshi stated. He envisions a future where brokers can focus on advising clients and nurturing relationships while 1Fort takes care of all substantial tasks in the background.
This influx of capital will expedite 1Fort’s development, enhancing the platform’s intelligence and automation capabilities. Marshi noted, “This funding accelerates everything we were already driving forward, allowing for further advancements in our AI and underwriting intelligence.”
As small businesses continue to face increasingly intricate risks associated with technology, data privacy, and cybersecurity, platforms like 1Fort could be vital in bridging insurance gaps. By refining the process for brokers, the aim is to make robust insurance coverage significantly more attainable for the millions of small businesses currently at risk.
“The ultimate goal is to simplify insurance procurement to a matter of just a few clicks,” Marshi concluded, “with 1Fort’s AI managing the entire process seamlessly.”
Source
venturebeat.com