General Magic, an AI-powered insurtech company, has raised $7.2m in seed financing, led by Radical Ventures.

The round also saw participation from a16z Speedrun, Brendan O’Driscoll, vice-president of product at Figma and Larry James Erwin from OpenAI.

With this investment, the company’s total funding now stands at $8.4m.

In addition to Radical Ventures and a16z Speedrun, investors in General Magic include Comma Capital; Aidan Gomez, CEO of Cohere; and Kevin Wang and Spencer Burke of Braze’s executive team.

General Magic develops AI agents intended to automate administrative tasks for insurance teams.

These agents handle activities such as responding to standard queries, gathering documents and maintaining communication with customers throughout the insurance process.

The technology is designed to integrate with broker management systems, quoting platforms and customer relationship management tools.

Initial deployments have shown that the company’s SMS-based agent can reduce the time needed to generate insurance quotes from around 30 minutes to under three minutes when used by a major global insurer.

The company’s main product, Cell, is an AI agent that connects directly with existing insurance systems.

Cell can be used across SMS, iMessage and RCS channels and supports workflows related to policy management, billing and claims.

Customers can interact with Cell via text message or receive proactive outreach from insurance teams.

The agent uses real-time system data to answer questions, request additional information when necessary, follow up automatically and update records as processes move forward.

All communication remains within a single thread for continuity.

In early trials with large personal lines insurers, General Magic’s technology has been used to automate routine clarifications and follow-ups over SMS in auto and life insurance workflows.

The company is also working on developing agents that are familiar with regulatory requirements in insurance distribution, including licensing standards such as RIBO and OTL.

Founded by Anthony Azrak and Jai Mansukhani, General Magic plans to broaden its technology across more insurance lines and workflows.

The company intends to focus on areas where improved coordination can benefit customers, brokers and carriers.

Mansukhani said: “Too much of insurance still relies on manual follow through across calls, inboxes and scattered systems.

“We focus on keeping customers engaged at every stage of the life cycle, 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.”