StitchStudio raises $8M to automate insurance paperwork with AI agents

Securing capital for insurance automation

StitchStudio, an Oregon-based startup, has successfully raised $8 million in a new funding round. The investment was led by Voyager Capital and included participation from Lookout Ventures and Grit Capital Partners. The company also received support from previous backers ManchesterStory and BrokerTech Fund.

This latest funding follows a $3 million seed round that the company closed earlier in 2025. The new capital is earmarked for several strategic growth initiatives, including the development of new products and the expansion of the company's workforce. StitchStudio intends to use the money to hire more customer support staff and build out new self-service tools for its users.

The startup is positioning itself within a rapidly growing sector of insurance technology. As reported by The Next Web, other firms in the space are also seeing significant interest, with London-based Ancep recently raising $8.5 million and Corridor launching with $25 million to build similar broker and benefits agents.

Solving the legacy system dilemma

A primary challenge for the insurance industry is the coexistence of old and new software systems. Because these platforms often do not communicate with each other, employees are frequently forced to type the same data into multiple different screens. This manual process creates significant bottlenecks in the workflow of both carriers and brokers.

StitchStudio addresses this problem by building AI agents that connect directly to these existing systems. Rather than requiring insurance companies to replace their entire infrastructure with new software, the agents act as a bridge. They perform the heavy lifting of data movement and entry while allowing the company to keep its established tools.

One of the core features of these agents is their ability to be audited. Every action the AI takes can be traced back by a human user, which is a critical requirement for the highly regulated insurance industry. This transparency ensures that while the work is automated, it remains under the oversight of the human staff.

Real-world impacts on workflows

The technology is already being used by several notable clients, including M3 Insurance, Heffernan Insurance Brokers, and Fidelity Life. These organizations use the agents to handle specific, repetitive tasks such as comparing quotes, checking bills, and onboarding new sales agents. By automating these steps, the companies can focus on higher-level tasks.

At Heffernan Insurance Brokers, the software handles the data gathering and comparison processes. This allows the human staff to remain in control of the decision-making process, as they still choose the specific insurers and provide the final advice to their clients. The AI serves as a high-speed assistant that handles the tedious parts of the transaction.

The efficiency gains from this automation are significant for the end user. StitchStudio reported that one of its customers was able to cut their proposal turnaround time from 90 minutes down to just 15 minutes. This speed allows brokers to provide much faster responses to clients who are looking for coverage options.

Expanding the product roadmap

With the new funding, StitchStudio plans to broaden the scope of its AI agent offerings. The company will begin developing specific tools for employee benefits, life insurance, and annuities. They also intend to create specialized agents for commercial property cover, which is a complex area of the insurance market.

The goal is to help customers move from single workflows to enterprise-wide adoption. CEO Karan Mishra noted that many customers who tried the first workflows eventually returned to expand the technology across their entire organizations. The new capital is intended to help these clients reach that scale more quickly.

The broader trend in the industry shows that large insurers are also moving toward AI-driven solutions. For example, Guardian has already moved 1 million dental calls per year to AI agents. StitchStudio aims to capture a similar share of the market by providing agents that can navigate the specific complexities of insurance paperwork.