Inshur, a New York-based insurtech startup specializing in insurance for the on-demand economy, has successfully closed a $19 million Series B funding round led by Viola Growth with participation from MS&AD. This brings the company’s total funding to $78.5 million since 2019.
Founded in 2016, Inshur provides instant insurance coverage through its mobile app to delivery and ride-hailing drivers working for platforms like Uber and Amazon Flex. The startup has recently integrated AI and machine learning capabilities into its platform to enhance service delivery and streamline operations.
According to CEO Dan Bratshpis, the company leverages AI primarily as an “augmented assistant” rather than a complete replacement for human insurance expertise. The technology powers several critical functions including ID verification, fraud detection, claim triage, and claim handling. This AI-driven approach allows Inshur to embed insurance directly into partner platforms, making coverage more accessible for gig economy workers.
The embedded insurance model offers significant advantages. Uber drivers, for instance, can log into the Inshur app using their existing Uber credentials to receive instant quotes. Because the platform is embedded within partner ecosystems, Inshur can pull relevant data directly from companies like Uber to underwrite policies that are both fair and comprehensive for on-demand drivers.
Inshur’s growth trajectory has been impressive, with the company reporting 100% growth in its car-sharing insurance platform over the past year. In April 2024, the startup expanded its US footprint by acquiring American Business Insurance Services, positioning itself for further market penetration.
The fresh capital will be deployed to scale Inshur’s US team and continue developing product offerings for both individual drivers and commercial partners. The company shared its 16-slide pitch deck that secured the Series B funding, providing insights into its business model, market opportunity, and growth strategy in the competitive insurtech space.
Key Quotes
We use AI and machine learning primarily as an augmented assistant rather than a replacement for insurance expertise, such as ID verification, fraud detection and assistance with claim triage and handling, and we embed insurance into the apps so that it’s accessible for drivers.
Inshur CEO Dan Bratshpis explained the company’s AI strategy to Business Insider, emphasizing their approach of using AI to enhance rather than replace human insurance expertise. This philosophy positions AI as a supportive tool that improves efficiency while maintaining the critical human element in insurance underwriting and claims.
Because we’re embedded, we can pull data from Uber and underwrite a fair and comprehensive policy for the on-demand driver.
CEO Dan Bratshpis described how Inshur’s embedded platform model works with partners like Uber. This integration allows the AI-powered system to access relevant driver data directly, enabling more accurate and personalized insurance underwriting for gig economy workers.
Our Take
Inshur’s funding success represents a pragmatic approach to AI implementation in traditional industries. Rather than pursuing full automation, the company demonstrates how AI can enhance existing expertise—a model particularly relevant for regulated sectors like insurance where human judgment remains crucial. The 100% growth rate suggests strong product-market fit, indicating that gig economy workers desperately need flexible insurance solutions. The embedded platform strategy is particularly clever, reducing friction by integrating directly into apps workers already use daily. This could become a blueprint for other insurtech companies. The acquisition of American Business Insurance Services also signals aggressive expansion plans, suggesting Inshur aims to become the dominant player in gig economy insurance. As the on-demand workforce continues growing, AI-powered embedded insurance solutions like Inshur’s could become standard infrastructure for platform economy companies.
Why This Matters
This funding round highlights the growing intersection of AI technology and the insurance industry, particularly in serving the rapidly expanding gig economy. As millions of workers transition to on-demand platforms, traditional insurance models struggle to provide flexible, instant coverage that matches their variable work patterns.
Inshur’s AI-powered approach addresses a critical market gap while demonstrating how machine learning can augment rather than replace human expertise in complex industries like insurance. The use of AI for fraud detection, ID verification, and claims processing represents a practical application that improves efficiency while maintaining necessary human oversight.
The 100% year-over-year growth signals strong market demand for embedded insurance solutions that integrate seamlessly with gig economy platforms. This trend could reshape how insurance is delivered across multiple sectors, moving from standalone products to embedded services within existing workflows. For the broader AI industry, Inshur’s success validates the “augmented intelligence” model where AI enhances human decision-making rather than replacing it entirely—a potentially more sustainable and acceptable approach for regulated industries.
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Source: https://www.businessinsider.com/pitch-deck-inshur-funding-series-b-ride-hailing-2024-10