Toronto, Canada: General Magic has raised an oversubscribed US$7.2 million seed funding round aimed at transforming insurance workflows by reducing quote times to under three minutes.
The Toronto-based startup announced the round on February 24, 2026, as it accelerates deployment of its AI agents across insurance carriers and brokerages.
Insurance operations remain heavily dependent on calls, emails, and fragmented portals, creating operational overhead for brokers and carriers.
General Magic is addressing this challenge by building AI agents designed to automate routine insurance tasks, streamline customer coordination, and improve lifecycle engagement.
Funding Led by Radical Ventures with Participation from a16z Speedrun
The US$7.2 million seed round was led by Radical Ventures, with significant participation from a16z Speedrun and new investment from Brendan O’Driscoll and Larry James Erwin.
With this latest raise, General Magic has secured US$8.4 million to date. Existing backers include Radical Ventures, a16z Speedrun, and Comma Capital.
The company is also supported by operators who have built foundational AI and product platforms, including Aidan Gomez and members of the executive team at Braze, including Kevin Wang and Spencer Burke.
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AI Agents Across the Insurance Lifecycle
General Magic builds AI agents that automate high-frequency insurance tasks such as answering routine customer queries, collecting documentation, and following up during critical lifecycle stages.
These agents operate across pre-quote eligibility, post-quote engagement, and claims coordination.
The platform integrates directly with broker management systems, quoting and rating platforms, and CRMs. Early deployments indicate that General Magic is capable of significantly improving operational efficiency.
In collaboration with one of the world’s largest general insurers, the company reduced time-to-quote from approximately 30 minutes to under three minutes using its SMS-based AI agent.
General Magic: Founder Perspective on Insurance Engagement
“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.”
Introducing ‘Cell’: Proactive AI Agent
At the core of General Magic’s offering is a product called Cell, a proactive AI agent that connects directly to systems already used by insurance teams. The agent integrates with broker management systems, quoting and rating platforms, and CRMs.
Cell can be deployed via SMS, iMessage, and RCS, and can extend into policy, billing, and claims workflows. Customers can initiate conversations by texting the agent, or insurance teams can proactively deploy it.
The AI agent responds using real system data, requests missing information, follows up automatically, and updates records as workflows progress. Conversations remain in a single thread, context is preserved, and customers can proceed at their own pace.
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Measurable Impact in Auto and Life Insurance
Early rollouts with large personal lines insurers demonstrate that General Magic reduces quote generation and finalization times from roughly 30 minutes to about three minutes. This automation covers routine clarifications and follow-ups over SMS across auto and life insurance workflows.
By handling frequent customer questions and coordination through text, the platform reduces delays and prevents stalled conversations.
The company is currently supporting deployments with carriers across auto and life insurance segments, where post-quote follow-through is critical.
Compliance and Regulatory Alignment
General Magic is also building agents that align with insurance distribution realities, including licensing and regulatory frameworks such as RIBO and OTL exams.
By specializing AI agents around how licensed professionals are trained to communicate, the company aims to ensure conversations remain accurate and compliant.
Founding Vision Rooted in Real-World Experience
General Magic was founded by Anthony Azrak and Jai Mansukhani, second-time founders who previously sold AI products into legacy industries. Their move into insurance followed firsthand frustration after experiencing prolonged claims delays due to a water leak incident.
That experience led them to identify systemic coordination challenges within the insurance industry. Rather than building a horizontal AI platform, General Magic chose to focus deeply on insurance operations.
Industry Context: Retention and Digital Acceleration
Retention rates in insurance trail other sectors, while acquiring new customers remains significantly more expensive than retaining existing ones. As digital distribution accelerates and renewal shopping intensifies, insurers and brokers risk losing revenue due to poor post-quote engagement.
General Magic is positioning its AI agents to address high-intent customer moments where coordination frequently breaks down.
Long-Term Vision
The long-term vision of General Magic is to make follow-through automatic, reliable, and invisible. By eliminating manual chasing and fragmented handoffs, insurance teams can focus on serving customers rather than managing process inefficiencies.
Sanjana Basu, Partner at Radical Ventures, said: “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.”
Troy Kirwin, Investment Partner at a16z Speedrun, added: “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.”
Pete Tessier, BFA, CAIB, President at Taycon Risk, said: “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.”
