Pathwork, an autonomous distribution platform modernizing the $160 billion life and health insurance market, has raised a $3.5 million seed round led by Costanoa, with participation from Logos Fund, American Family Ventures, Meridian Ventures, and prominent industry angels. The funding will help accelerate adoption among brokers and carriers nationwide.

Life and health insurance touches millions of Americans, but the way policies are sold hasn’t meaningfully changed in decades. Distribution remains fragmented, manual, and error-prone, leaving brokers bogged down by outdated software systems and left to chase paperwork and decipher underwriting rules. In the U.S. alone, life and health premiums exceed $1.1 trillion annually, an enormous market where speed, accuracy and service make the difference.

Pathwork turns these complex, manual workflows into intelligent systems that help brokers and carriers move faster, quote more accurately, reduce costly back-and-forth, and deliver a better customer experience.

“The last 20 years of digitization made insurance distribution more complex, not less,” said Ian Levinsky, CEO and co-founder of Pathwork. “AI will reimagine everything from how the work gets done to the tools professionals rely on. Pathwork is shaping this future so the people behind every policy can focus back on creating impact and building trust.”

Pathwork combines predictive and generative AI to create a seamless experience for brokers placing policies to carriers making the call. Its product suite includes:

Case Underwriter: Automates the underwriting process by analyzing unstructured data, synthesizing applicant details, and surfacing the best-fit carrier options. It guides brokers from intake to placement in minutes.

Knowledge Assistant: Acts as an on-demand expert, instantly answering questions about underwriting rules, product guidelines, and carrier nuances, all trained on insurance-specific data.

Pre-App Manager: Helps insurance carriers evaluate incoming cases more efficiently by analyzing data to determine eligibility, requirements, and risk class.

“Pathwork is exactly the kind of company we love to back,” said Mark Selcow, Partner at Costanoa. “Its founders bring a rare combination of industry expertise and technical execution—having scaled a 300-agent digital insurance agency at EverQuote and led AI innovation in regulated markets at Litlingo. They’ve built a solution that applies AI in a way that will change how the industry operates from now on.”

Since launching in 2024, Pathwork has analyzed over 10,000 cases and helped retain millions in commission payments. The company supports more than 65 brokerages and carriers, including Highland Capital Brokerage, AIMCOR, Hilb, LifeQuotes (a division of Keystone Agency Group), NFP, and Merit Insurance (a division of Integrity Marketing).

“Highland chose Pathwork for their deep understanding of our challenges and the usability of their products,” said Adnan Raja, SVP of Digital Transformation at Highland Capital Brokerage. “They’re running the most modern tech stack we’ve seen in this space while meeting the security and compliance demands of our regulated industry”.