General Magic raises USD $7.2m to speed insurance AI

General Magic has raised USD $7.2 million in seed funding as it targets operational bottlenecks in insurance sales and servicing with SMS-based AI agents.

The round was led by Radical Ventures. Andreessen Horowitz's Speedrun programme participated, alongside new investments from Figma VP of Product Brendan O'Driscoll and OpenAI's Larry James Erwin.

General Magic has raised USD $8.4 million to date. Other backers include Comma Capital, Cohere CEO Aidan Gomez, and executives from customer engagement platform Braze.

The Toronto-headquartered company builds AI agents for routine insurance customer interactions, including answering common questions, collecting documents, and following up with customers across pre-quote, post-quote, and claims processes.

General Magic positions the tools as a way to reduce reliance on phone calls, emails, and portals that require manual coordination from brokers and carriers. Early deployments have reduced inbound calls by 30% and saved insurance teams more than 250 hours a month.

Product focus

The core product, Cell, is described as a proactive agent that connects to systems used by insurance teams, including broker management systems, quoting and rating platforms, and customer relationship management software.

Cell can be deployed across SMS, iMessage, and RCS, and extended into policy, billing, and claims workflows.

Customers can text the agent directly, or insurance teams can initiate a conversation. The agent uses data from connected systems, asks for missing information, follows up automatically, and updates records as workflows progress.

Early results

General Magic says it has worked with one of the world's largest general insurers, cutting time-to-quote from around 30 minutes to under three minutes using an SMS-based agent.

In rollouts with large personal lines insurers, it has reduced the time needed to generate and finalise quotes from roughly 30 minutes to about three minutes across auto and life insurance workflows. The approach centres on handling routine clarification and follow-ups over text.

"Too much of insurance still relies on manual follow through across calls, inboxes, and scattered systems," said Jai Mansukhani, Co Founder and President of General Magic.

"We focus on keeping customers engaged at every stage of the lifecycle, not just at quote or claim. Our agents handle the routine work that slows teams down, while giving insurance leaders real visibility into what customers are asking, where they are getting stuck, and how they are feeling. When that engagement and data flow directly into core systems, teams move faster and customers feel genuinely supported," Mansukhani said.

General Magic is supporting deployments with carriers across auto and life insurance. It highlighted post-quote follow-through and customer coordination as key pressure points for insurers, particularly where engagement drops after a quote is issued.

Regulatory context

General Magic says it is building agents that reflect insurance distribution practices and licensing requirements. It cited regulatory and licensing frameworks such as RIBO and OTL, as well as other broker and adviser exams.

The goal is for agents to mirror how licensed professionals communicate about coverage, keeping conversations accurate and aligned with existing practices.

Investor views

Radical Ventures Partner Sanjana Basu framed the opportunity around entrenched legacy infrastructure in financial services and insurance.

"Most of the world's financial and insurance data is locked inside rigid, legacy systems that were never designed for the AI era. General Magic isn't trying to convince enterprises to throw away that infrastructure. Instead, they are giving them a way to finally talk to it. By building a reasoning layer that sits on top of existing systems of record, the General Magic team are unlocking a massive amount of trapped value. This is how the Fortune 500 becomes AI-native. Not by rebuilding from scratch, but by bridging the gap between old data and new intelligence," Basu said.

Moreover, a16z Speedrun Investment Partner Troy Kirwin said the firm is deepening its relationship with the founders following their participation in the Speedrun cohort.

"We've watched Anthony and Jai grow exponentially both during their speedrun cohort and in the months after. They are building a truly compelling product that we believe will revolutionize workflows across insurance carriers and brokerages globally. I have a personal thesis that outsiders will disrupt legacy industries, and General Magic has helped buttress this thesis with the immense progress they've made. We are excited to deepen our partnership through supporting their seed round," Kirwin said.

Taycon Risk President Pete Tessier said General Magic has shown a willingness to tailor its approach to market requirements.

"What I have seen with General Magic and their approach to AI was a willingness to adapt to the insurance industry's needs. This is significant because of the varied nuances of the insurance industry and how its products are distributed and why internal and external customer journeys are different. The challenge will be making it scale across all channels of insurance product distribution. This might be the first true 'game changer' for the industry and deliver on customer experience and expectations," Tessier said.

General Magic was founded by Anthony Azrak and Mansukhani, who are second-time founders. The company plans to expand across insurance lines and workflows, focusing on parts of the customer journey where intent is high and coordination commonly breaks down.