Toronto — February 24, 2026 — General Magic, an AI-focused insurtech company, announced it has raised $7.2 million in an oversubscribed seed funding round to expand its AI agents designed to automate customer communication and workflow coordination in insurance operations.
The round was led by Radical Ventures, with participation from a16z Speedrun. Additional investors include Brendan O’Driscoll, VP of Product at Figma, and Larry James Erwin from OpenAI. The company said it has raised a total of $8.4 million to date, with backing from Radical Ventures, a16z Speedrun, Comma Capital, and several operators in AI and enterprise software.
Automating high-friction insurance workflows
General Magic develops AI agents that operate primarily via SMS and messaging channels to handle routine, time-consuming tasks across the insurance lifecycle. The company said its agents support pre-quote eligibility checks, post-quote engagement, and claims coordination by answering customer questions, collecting documentation, and following up automatically.
The agents integrate directly with broker management systems, quoting and rating platforms, and customer relationship management (CRM) systems. According to the company, this allows agents to access real-time system data, request missing information, update records, and maintain conversation context in a single thread.
In early deployments, General Magic reported measurable operational impacts. Working with a large global insurer, the company said it reduced time-to-quote from approximately 30 minutes to under three minutes by automating clarification and follow-up steps through SMS-based interactions. The company also stated that inbound calls were reduced by roughly 30%, and internal teams saved more than 250 hours per month across pre-quote, post-quote, and claims-related workflows.
Product design and deployment model
General Magic’s core product, called Cell, is described as a proactive AI agent that connects directly to the systems insurance teams already use. It can be deployed across SMS, iMessage, and RCS, and extended into policy servicing, billing, and claims workflows.
Customers can initiate conversations by texting the agent, or insurance teams can proactively deploy it during key stages of the customer journey. The agent responds using system data, asks for additional information when required, follows up automatically, and updates backend systems as workflows progress.
The company said the platform is designed to preserve context across conversations and reduce delays that often occur when communication moves between calls, emails, and separate portals.
Focus on regulated and legacy environments
General Magic said it is currently working with carriers in auto and life insurance, where post-quote engagement and follow-through are critical to retention. The company noted that retention challenges and rising acquisition costs in insurance have increased pressure on carriers and brokers to improve customer coordination, particularly during renewal periods.
The platform is also being developed with attention to regulatory and licensing frameworks in insurance distribution, including RIBO and OTL certifications. The company said its agents are structured to align with how licensed professionals are trained to communicate about coverage, with the aim of maintaining compliance and accuracy.
Rather than replacing existing systems, General Magic positions its technology as a layer that connects to legacy infrastructure. Investors described the approach as enabling enterprises to extract value from existing systems of record without requiring full-scale replacements.
Company background and outlook
General Magic was founded by Anthony Azrak and Jai Mansukhani, who previously built and sold AI products into legacy industries. The founders said their focus on insurance stemmed from personal experiences with complex claims processes and customer friction.
Looking ahead, the company said it plans to expand into additional insurance lines and workflows, concentrating on areas where customer intent is high but coordination frequently breaks down. The stated objective is to automate routine follow-through tasks so insurance teams can reduce manual effort and focus more on direct customer service.
General Magic said its long-term goal is to make workflow coordination more consistent and less dependent on manual tracking, to improve both operational efficiency and customer experience across insurance organizations.
