Kalepa, a New York-based technology company developing artificial intelligence (AI) software for the insurance industry, has secured USD $75 million in Series B financing, valuing the business at USD $470 million.
The announcement follows a period of expansion during which Kalepa reports that both its revenue and number of customers increased threefold over the past 12 months.
The company said the investment will be directed towards developing additional AI capabilities, expanding into new markets and increasing its workforce, with plans to double employee numbers during 2027. Kalepa also stated that it has operated on a cash-flow-positive basis for more than two years. Its client portfolio includes insurers and managing general agents (MGAs) such as W.R. Berkley, Bowhead Specialty and AmRisc.
According to Kalepa, the insurance sector is facing a combination of financial, competitive and workforce challenges that are prompting businesses to reassess their operating models. Rising claims expenditure, the departure of experienced industry professionals, increased competition from technology-led insurers and declining insurance rates are placing additional demands on underwriting teams and operational resources.
Kalepa maintains that many existing AI applications within insurance remain concentrated on individual administrative processes rather than supporting activities across the wider business. The company is seeking to address this through technology that connects different functions and enables insurers to manage more extensive workflows while retaining appropriate human involvement.
Its AI platform is designed to assist with insurance operations, risk assessment, underwriting, pricing decisions and portfolio oversight. Kalepa explained that the technology uses an insurance-focused system to manage multiple AI agents, allocating tasks and adjusting the degree of automation according to their complexity and associated risks. Insurance professionals remain responsible for activities requiring specialist knowledge, intervention or authorisation, while the platform incorporates verification processes intended to support accountability and audit requirements.
The company cited customer-reported operational improvements as evidence of the technology’s potential impact. According to Kalepa, insurers using its platform have recorded increases of 30% to 60% in premium volume managed per underwriter, alongside a 58% decrease in the time required to produce quotations. Kalepa also reported a 960-basis-point improvement in combined ratios and a twofold increase in quote-to-bind rates among users of its technology.
In addition, Kalepa stated that the amount of work processed through its software quadrupled during the previous year, which it attributed to increased adoption and utilisation among insurance customers.
“Insurance runs on the judgment of experienced professionals, and our Professional Grade AI is held to that same standard, ” commented Paul Monasterio, co-founder and CEO of Kalepa. “That means insurers can look at each task and ask who does it best, and at what cost. Sometimes that’s AI and sometimes it’s a person. When insurers get that division of labor right, their people’s attention can go to the complex risks, close calls, and broker relationships that need it. This funding lets us bring Professional Grade AI to more of the work insurers do, so they have that choice across the entire value chain.”
Kalepa has also made a number of appointments to its senior management team as part of its growth plans. The most recent addition is Garrett Schlesinger, who has taken up the position of Chief Technology Officer after spending 12 years at financial technology business Affirm. Schlesinger joined Affirm as its 12th employee and was involved in building the company’s real-time underwriting infrastructure.
Other senior executives appointed by Kalepa include Chief Revenue Officer David Meister, who previously worked at Addepar, and Head of Product Audrey Howell, whose professional background includes roles at Palantir and Butterfly Network. Tim Khoo-Jones, previously Head of Talent at Block and Shopify, has also joined the business to oversee its recruitment and talent strategy.
The Series B financing was led by investment firm Updata Partners, with further backing from IA Ventures and Inspired Capital. Both firms had previously supported Kalepa, including its USD $14 million Series A financing round in 2021, which was led by Inspired Capital.
Following the latest transaction, Kalepa said its cumulative funding has reached USD $91 million. The company plans to use the new investment to extend its technology into additional areas of the insurance process, increase its market presence and support further recruitment as it pursues its next phase of development.
