Slingshot Insurance, an AI-native insurer focused on the embedded economy, has launched publicly after operating in stealth, backed by a $27m seed round.
Rally Ventures and Skyward Group jointly led the investment, which was oversubscribed. A number of experienced figures from the property and casualty (P&C) sector also took part, among them Jim Hays, who is set to take a seat on the firm’s board of directors.
The raise arrives as embedded cover becomes one of the quickest-expanding areas of P&C insurance. According to industry projections, its share of worldwide P&C premiums could climb from around 3% at present to close to 20% within ten years, a pace well ahead of the wider market.
Slingshot was founded by Rally Ventures together with Ethan Genteman, who previously served as chief actuarial officer at Palomar Holdings. The business has been designed to support players in the embedded space, such as vertical software platforms, managing general agents (MGAs) and insurance distributors, as they seek to benefit from this change. Its offering equips them with the technology, capacity and pace required to roll out and grow insurance products aimed at specialist and fast-changing segments, including amateur sport, travel and the gig and freelance economy.
According to the company, policies sold at high volumes generate a level of transactional and data complexity that spreadsheets, email and fragmented legacy tools struggle to handle. Slingshot swaps this assortment of systems for one unified platform, applying AI to automate intricate processes and using APIs to link up with MGAs, distribution partners and capital providers. Each decision taken on the platform can be audited, reconciled and explained, offering MGAs and capital providers improved visibility, faster turnaround and deeper insight.
Rally Ventures backed embedded insurance at an early stage, viewing it as a sizeable and rapidly developing opportunity.
Among the firm’s first customers is Vertical Insure, an embedded insurance MGA with more than 750,000 customers and an average premium of $25. The MGA also acts as a design partner, having sought quicker, technology-led carrier support.
Slingshot co-founder and CEO Ethan Genteman said, “Traditional carrier infrastructure wasn’t built for embedded insurance’s risk and economic model. Embedded products tend to be higher-frequency, lower-severity risks, often with smaller premiums, while incumbent systems and operating models carry fixed costs designed for a much different market.
“Our infrastructure changes those economics by dramatically lowering the cost of administering policies and accessing capital. That makes products viable that historically were not, creating value for customers and capital providers while opening up entirely new embedded insurance opportunities.”
Rally Ventures managing director Justin Kaufenberg said, “The real growth opportunity in insurance today is in the small, everyday policy sold right at checkout.
“We built Slingshot to provide MGAs and others serving the embedded market with the infrastructure to launch new products at a speed that simply has not been possible before.”
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