Indigo, the insurtech innovator, has closed a $50 million Series B funding round. This will give them significant capital to accelerate their modernization of medical malpractice insurance across the United States. The highly oversubscribed round was led by Rubicon Founders. Joined for the first time by Town Hall Ventures and Optum Ventures. Using this financing, the company will further develop its internally owned AI underwriting platform, called Lux. The result of this much-improved technology is faster and far more accurate coverage decisions for providers.
“The next phase of innovation in insurance requires technology purpose-built for complex, specialty risk,” said Jared Kaplan, CEO of Indigo.“This funding allows us to expand our technology footprint, deepen underwriting rigor, and deliver an exceptional ease-of-doing-business experience for brokers while ensuring physicians receive pricing and coverage aligned with their true risk profile. Our results demonstrate that advanced automation can drive profitable growth while reducing operational friction.”
AI-Driven Growth and Market Expansion
At present, Indigo currently insures close to 1,000 providers, who have already surpassed $10 million in written premiums. By utilizing machine learning, the company has eliminated the more laborious processes involved in many legacy insurance companies. This has led to physicians receiving pricing that actually reflects their risk profiles. The company is also looking to build more distribution partnerships, which will ultimately lead to its growth across the country. This has led to investors understanding that Indigo’s “vertical AI” creates a competitive advantage in a stagnant market. The company is still changing the paradigm of how risk is assessed and managed in modern medical groups.
Matt Kim, Indigo Co-Founder and Partner. At Rubicon Founders, said, “Indigo is executing at the intersection of deep domain expertise and AI excellence. Their vertical AI strategy isn’t incremental; it fundamentally redefines how risk is assessed, priced, and managed. We’ve seen firsthand how their models improve both the speed and quality of underwriting decisions. This capital will help them scale faster than legacy carriers have been able to for decades.”
David Whelan, Co-Founder & General Partner at Town Hall Ventures, added, “Indigo represents exactly the type of category-defining opportunity. We look for: By layering machine learning over deep insurance expertise, they’ve built a defensible moat & a superior underwriting product. Their ability to quote with lower administrative overhead creates a meaningful advantage in a legacy market. Ultimately driving down premiums for high-quality medical groups.”
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News Source: Businesswire.com
