Muffintech Raises €3.5 Million to Expand AI-Powered Solutions for the Insurance Sector

Berlin-based InsurTech startup Muffintech has secured €3.5 million in funding to enhance its AI-driven tools designed for insurance companies and brokers. The company aims to streamline operations by automating tasks such as handling customer queries, retrieving policy information, managing objections, and providing benefit-focused responses.

The funding round was led by ff Venture Capital and Techstars, with contributions from notable angel investors within the insurance industry. Among the investors were former Ergo CEO Torsten Oletzky, former Gothaer board member Oliver Bruss, ex-insurance executive Stefan Liebig, several industry-focused ‘finfluencers’, and InsurTech investor Daniel Feyler. Additionally, €800k of the total funding came from the Investitionsbank Berlin (IBB) through its Pro FIT program.

On its official website, the company highlights the capabilities of its AI tool, stating: “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.”

Muffintech, founded in 2021 by Simon Moser, Tomas Gan, Felix Goepp, and Elli Wolf, is developing a specialized large language model (LLM) tailored for the insurance industry. The company claims that its AI solution is capable of automating complex workflows, from policy searches to customer service interactions, helping brokers and insurers improve productivity. According to Muffintech, their AI operates “like an employee who never sleeps, never stops learning, and who can do almost infinite tasks at the same time.” The platform is designed to integrate directly into insurers’ internal systems, enhancing workflow automation.

The AI model has been trained on more than 30,000 insurance conversations and has passed the industry-critical 34D exam, a competence certification for insurance intermediaries and consultants. In October 2024, examiners from the IHK (Industrie- und Handelskammer) tested the tool using questions from the Certificate of Competence Examination for Insurance Intermediaries and Consultants (§ 34d GewO). The results showed that Muffintech's AI achieved a “very good” rating, correctly answering 98% of the questions. The company stated that “all responses were either completely or almost entirely correct, with no incorrect answers” during the evaluation. For comparison, ChatGPT achieved only a 52% success rate in the same test.

Currently, Muffintech’s technology is utilized by brokers, broker pools, and insurance companies. The fresh funding will support the company’s efforts to enhance its AI capabilities and broaden its market presence.

The growing interest in AI-powered solutions within the insurance sector reflects a broader trend across fintech industries. As startups like Integral use AI to automate accounting processes, the demand for specialized AI tools tailored to industry-specific needs, such as those provided by Muffintech, continues to rise.