Notch Raises $15M to Bring Support AI Agents to the Insurance Vertical - The SaaS CFO Recap

Podcast: The SaaS CFO

Published: 2026-01-08

Duration: 31 minutes

Guests: Rafael Broshi

Summary

Notch's co-founder, Rafael Broshi, discusses the company's pivot from an insurance MGA to an AI agent platform, emphasizing the importance of outcome-based pricing and its impact on the insurance and finance industries.

What Happened

Rafael Broshi, co-founder and CEO of Notch, shares his transition from the Israeli army to leading an AI company focused on customer experience in the insurance sector. Notch initially started as an MGA but pivoted after the release of GPT-4 to develop AI agents aimed at automating tier one and two customer support processes. This strategic shift was driven by the potential of AI to enhance customer experiences and improve efficiency in regulated industries like insurance and finance.

The company has successfully raised $15 million to fuel its new direction, including a $7 million seed round and an additional $7 million after the pivot. Notch's AI agents are designed to manage customer support in various channels, including voice, chat, and email, offering cost savings by reducing the need for large contact center teams. The company's focus is on outcome-based pricing, ensuring their success metrics align with those of their clients.

Broshi's insights reveal that AI companies generally have lower gross margins compared to traditional SaaS businesses due to the costs associated with AI deployment. Despite this, Notch aims to automate as many customer support conversations as possible, which serves as a key indicator of their market potential and operational efficiency.

With a strong presence in Israel and the U.S., Notch plans to concentrate more on the U.S. market by 2026, positioning itself as a leader in the insurance AI space. The company's operations are divided between Israel, which focuses on research and development, and the U.S., which handles sales and market strategies.

Broshi highlights the importance of creating seamless AI agent deployment processes and fixed data structures to facilitate quick onboarding and value realization for clients. This approach addresses the complexity of replicating intricate business processes in AI systems, a common hesitation among companies.

By 2026, Notch aims to dominate the insurance sector with its advanced AI solutions, capitalizing on the growing demand for automated customer support systems. The company currently employs a team of about 40 people, working towards making AI agent creation as efficient and user-friendly as possible.

Key Insights