Berlin-based InsurTech startup muffintech has raised €3.5 million to advance its AI-driven solutions for insurance companies and brokers to aid in answering customer queries, searching policy details, handling objections, and providing benefit arguments.
The funding round was led by ff Venture Capital and Techstars, with participation from Angel investors in the insurance sector, including former Ergo CEO Torsten Oletzky, former Gothaer board member Oliver Brüß, former insurance manager Stefan Liebig, several ‘finfluencers’, and insurtech investor Daniel Feyler.
Additionally, €800k of the funding comes from Investitionsbank Berlin’s IBB Pro FIT programme.
According to their website, “This tool that incorporates industry-specific expertise is much more than just a chatbot. Our AI is a pre-trained assistant designed for speed and efficiency. From knowledge management to customer service, Aion quickly solves common problems, allowing you to reduce your team’s workload, boost customer satisfaction and improve conversion rates”.
Founded in 2021 by Simon Moser, Tomas Gan, Felix Goepp, and Elli Wolf, muffintech is developing a specialised large language model (LLM) tailored for the insurance industry. The AI tool aims to streamline operations by automating complex and time-consuming tasks, including answering customer queries, searching policy details, handling objections, and providing benefit arguments.
According to the company, its AI functions as “an employee who never sleeps, never stops learning, and who can do almost infinite tasks at the same time.” The platform integrates seamlessly with internal company systems, enabling insurers and brokers to automate workflows and improve productivity.
Their AI is pre-trained on over 30,000 insurance conversations and has successfully passed the 34D exam, aiming to ensure a high level of performance.
According to an October 2024 report, IHK examiners tested Muffintech’s tool using questions from the Certificate of Competence Examination for Insurance Intermediaries and Consultants (§ 34d GewO). The software achieved a “very good” rating, correctly answering 98% of the questions. Muffintech stated that all responses were either completely or almost entirely correct, with no incorrect answers.
In comparison, ChatGPT scored just 52%.
Muffintech already serves brokers, broker pools, and insurance companies. With its recent funding, the startup plans to scale its AI capabilities and expand its reach in the market.
There is significant potential in muffintech’s offering, as the insurance industry continues to seek AI-driven solutions to improve efficiency and reduce operational costs. The rise of AI applications across various fintech sectors, including accounting startups like Integral, suggests that demand for AI-powered tools tailored to niche industries is only growing.
Read the orginal article: https://www.eu-startups.com/2025/02/insurtech-muffintech-secures-e3-5-million-in-funding-to-revolutionise-insurance-with-ai/
