New York-based Novella, an AI-driven wholesale insurance brokerage focused on large and complex physical assets, has raised a total of $21 million to date, including a recently completed $16 million Series A funding round.
The latest funding round was led by Brewer Lane Ventures, with participation from investors including Box Group, Crystal Venture Partners, SV Angel, Avid Ventures, Verissimo Ventures, and Blank Ventures.
Funding to Strengthen AI Underwriting and National Expansion
Novella plans to use the fresh capital to:
- Enhance its AI-powered underwriting technology
- Expand its insurance brokerage network
- Open regional sales offices across the United States
- Scale operations in research and development
The company is focused on modernizing the insurance process for highly complex and specialized risks using artificial intelligence and automation.
Combining Human Brokers with AI
According to Max Kane, the company believes the future of insurance lies in combining experienced brokers with advanced AI systems.
Kane said:
“We believe pairing world-class human brokers with world-class AI is the formula for success.”
He added that industry-specific AI can help brokers handle complicated underwriting processes more efficiently, allowing them to focus on client relationships and business growth.
Focus on the Excess and Surplus Insurance Market
Founded in 2024 by Max Kane, Michael Tsibelman, and Alex Broome, Novella specializes in the excess and surplus (E&S) insurance market.
The E&S segment covers risks that traditional insurance providers often avoid due to their complexity or scale.
These include:
- High-rise buildings in hurricane-prone areas
- Large infrastructure projects
- Industrial construction sites
- Specialized commercial assets
This market has become increasingly important as climate risks, infrastructure expansion, and high-value commercial developments continue to grow.
Expanding Across the United States
Novella is actively growing its footprint across the U.S. market.
The company has announced plans to:
- Open offices in Texas and Florida
- Launch a new office in California
- Strengthen its East Coast presence from New York City
In addition, Novella operates a research and development center in Tel Aviv, Israel.
Approximately half of the company’s current workforce is based in Israel, and the company plans to significantly expand its R&D team there over the coming months.
AI Is Reshaping the Insurance Industry
The insurance sector is increasingly adopting AI technologies to improve:
- Risk assessment
- Claims processing
- Fraud detection
- Underwriting efficiency
- Customer experience
For complex insurance categories like E&S, AI can help process large volumes of data faster while improving pricing accuracy and operational efficiency.
Novella’s model reflects a broader trend where insurtech startups are blending automation with human expertise to modernize legacy insurance systems.
Growing Investor Interest in Insurtech
Investor interest in AI-powered insurtech companies continues to rise globally as insurers seek more efficient ways to manage growing climate, infrastructure, and commercial risks.
By focusing on underserved and high-complexity markets, Novella is positioning itself within one of the fastest-evolving segments of the insurance industry.
Conclusion
With fresh funding, a growing AI platform, and expansion plans across the United States, Novella is aiming to transform how complex commercial risks are insured.
As the excess and surplus insurance market expands alongside increasing infrastructure and climate-related risks, AI-powered underwriting solutions could play a critical role in the future of the insurance industry.
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.