Follow Beinsure
New York-based insurtech Delegance Brokerage has raised $3.1 mn in pre-seed funding to expand its AI-powered commercial insurance platform, which replaces traditional broker commissions with a flat 5% fee.
The investment round was led by Grit Capital Partners, with participation from Core VC, Gilgamesh Ventures and Outside VC.
- Delegance Brokerage secured $3.1 mn in pre-seed funding led by Grit Capital Partners, with participation from Core VC, Gilgamesh Ventures and Outside VC.
- The company is licensed in 51 jurisdictions, has direct appointments with 25 insurers and reports more than $26 mn in premium commitments for 2026.
- Delegance charges a disclosed 5% brokerage fee instead of traditional commissions of 15% to 25%, claiming to reduce total insurance costs by 10% to 20% on typical placements.
Delegance secured the financing after establishing its brokerage operations. The company holds licenses in 51 jurisdictions and has direct appointments with 25 insurance carriers, including Chubb, Travelers and The Hartford. It has also secured more than $26 mn in premium commitments for 2026.
The company provides commercial insurance placement and servicing to businesses ranging from independent contractors to private equity-owned portfolios. Customers can access its services through a website, mobile application, email, telephone, chat or API integrations.
Delegance replaces traditional broker commissions with a 5% fee
Delegance founder and CEO Alexander Ledbetter developed the company’s business model after working at commercial insurer AXA XL in 2023. During that period, he observed a large commercial customer renewing substantially unchanged insurance coverage for more than a decade while its broker continued collecting a 20% annual commission.
That commission paid for paperwork, and the paperwork never got faster. I taught myself to code so software could do that work. The business should keep the money the paperwork used to cost.
Alexander Ledbetter, Delegance founder and CEO
Traditional commercial insurance brokerage commissions typically range from 15% to 25%, according to Delegance.
The company instead charges a disclosed 5% fee, which it says reduces total insurance costs by 10% to 20% on a typical placement while maintaining access to the same admitted insurance carriers.
The pricing model is supported by automation of quoting, policy administration and routine servicing activities that would otherwise require broker involvement.
AI platform automates commercial insurance placement and servicing
Businesses can request insurance quotes by uploading existing policies or completing a short questionnaire. Delegance supports more than 4,000 business classifications and over 36 coverage types, including general liability, workers’ compensation, commercial property, commercial auto, cyber insurance, professional liability and directors and officers (D&O) insurance.
Many business classifications qualify for instant quotes. Specialty and excess risks are referred to appropriate insurance markets through wholesale brokerage partners.
The platform also automates policy servicing through a centralized customer account.
Policyholders can obtain certificates of insurance in seconds, request any of 64 types of endorsements and policy modifications, submit and track claims, and receive proactive renewal reviews.
Delegance’s AI agent, Orin, answers coverage questions using information contained in customers’ existing policies. The service operates through the company’s online portal, email, telephone and chat channels.
Licensed insurance brokers retain responsibility for complex placements, claims and coverage decisions. The company combines automated administrative processes with human oversight for activities requiring specialist insurance expertise.
Delegance targets commercial property and private equity portfolios
Delegance serves businesses across construction and skilled trades, commercial real estate, ecommerce, consumer brands, healthcare practices and professional services. Its services also extend to private equity firms seeking to consolidate insurance management across portfolio companies through master insurance programs.
In one example, Delegance manages an 11-property commercial real estate portfolio with more than $100 mn in insured value under a single insurance program.
The platform also works with banks and software companies that refer commercial customers seeking insurance coverage. These arrangements provide distribution channels alongside Delegance’s direct digital brokerage operations.
Funding supports broker hiring and technology development
Delegance plans to use the $3.1 mn investment to recruit additional licensed insurance brokers and engineers.
The company will also expand its relationships with banks, private equity firms and software platforms to support commercial insurance distribution.
Its existing operations provide access to 25 directly appointed insurance carriers, while wholesale partnerships extend its ability to place more specialized risks.
