Novella, a Miami-based AI-powered excess and surplus (E&S) insurance wholesaler, has raised $21M in Series A funding led by Brewer Lane Ventures. The platform simplifies placing specialty coverage for brokers' complex risks like commercial real estate and hospitality, delivering quotes in 24 hours via real-time submissions and dashboards. The capital will fuel US expansion, AI agent development, and hiring.
E&S Market Tops $105B
The raise aligns with the US E&S market reaching $105.31B in premiums for 2025, up 9.7% year-over-year per Risk & Insurance. Growth is moderating from prior highs amid abundant capacity, creating efficiency opportunities for AI platforms. Novella targets this fragmented space, licensed in all 50 states with access to 3,500 retail agencies and 100 carriers. Competitors like Boost Insurance ($37M raised) focus on embedded insurance, while Pathpoint ($75M+) pioneered digital E&S distribution.
Brokers Wait Weeks for Quotes
Insurance brokers struggle with hard-to-place risks in commercial property, liability, and wildfire coverage, often waiting weeks for responses from carriers. Traditional wholesalers rely on manual submissions, lacking real-time visibility into market appetite. This delays placements for high-risk clients like contractors and manufacturers. Novella addresses these delays head-on.
AI Agents Supercharge Producers
Novella's AI-native platform automates submissions, form comparisons, policy reviews, and binding, turning brokers into 'super-producers' focused on relationships. Unique offerings include parametric wildfire insurance and terrorism coverage up to $250M. As Max Kane, CEO and founder, noted:
"By offloading these back-office burdens to AI agents, Novella allows its human producers to dedicate their time entirely to strengthening retail broker relationships."
This hybrid model contrasts with pure digital platforms like Tarmika, acquired by Applied Systems.
Brewer Lane Signals Conviction
Brewer Lane Ventures led the round, joined by Box Group, Crystal, SV Angel, Arch, and others, bringing total funding to $21M. The investor mix reflects conviction in AI's role in wholesale brokerage. Chris Downer of Brewer Lane highlighted:
"Novella is the first wholesaler to effectively blend AI and talent… that’s why top brokers are joining the team."
This backing validates Novella's seven-figure run rate achieved five months post-launch.
$105B Market Ripe for AI
The US E&S sector, estimated at $110B by 2026 with 10% CAGR, faces slowing premium growth but rising tech adoption. Climate-driven complex risks push demand for specialty lines, where admitted carriers retreat. Novella works with nearly 10% of independent US agencies, placing risks like $361K NY apartments.
Founders Bring Insurtech Pedigree
CEO Max Kane comes from Lemonade, CTO Michael Tsibelman from Microsoft and Gigya, and co-founder Alex Broome from Baldwin Group and ReShield. This team combines insurtech experience with engineering prowess, supporting a Tel Aviv R&D center housing half of its 24 employees.
US Expansion Accelerates
Novella plans offices in Miami, Houston, and Southern California soon, while doubling its Tel Aviv engineering team. Post-raise hiring targets brokerage producers and AI engineers. Early traction includes $500K risks placed at Lloyd's and partnerships with carriers.