As artificial intelligence continues reshaping industries, the insurance sector is emerging as one of the next major areas of transformation. While many traditional insurers are grappling with rising catastrophe risks, inflationary pressures, and stricter underwriting requirements, Honeycomb Insurance is taking a different approach—using AI and data-driven insights to modernize commercial property insurance.
The Chicago-based insurtech company has announced a $40 million funding round aimed at accelerating its growth, expanding into additional markets, and enhancing the technology behind its underwriting platform.
The investment was led by Zeev Ventures, with participation from existing investor Ibex Investors and new investors Peakline, Alpha Partners, Meitar Partners, Practical VC, and former San Francisco 49ers champion Harris Barton. With the latest raise, Honeycomb’s total funding now stands at $95 million.
Expanding an AI-First Insurance Model
Honeycomb focuses on providing insurance coverage for apartment buildings and condominium associations, a segment of the commercial property market that has faced increasing challenges in recent years.
Unlike traditional insurers that often rely on broad risk classifications and manual reviews, Honeycomb has built its platform around artificial intelligence and large-scale data analysis. The company evaluates properties using hundreds of structured and unstructured data points, including building characteristics, environmental factors, historical performance data, geospatial information, and high-resolution imagery.
Its proprietary AI models analyze these datasets to generate property-specific risk assessments, allowing the company to make underwriting decisions with greater precision.
According to Honeycomb Co-Founder and CEO Itai Ben-Zaken, the company’s technology-first approach was designed from the ground up rather than added to an existing insurance framework.
“We are building Honeycomb to be the category leader in commercial real estate insurance,” Ben-Zaken said. “Our platform is centered on proprietary data and AI models that allow us to evaluate each property individually and provide fair, competitive pricing.”
Strong Growth Supports Expansion Plans
The funding follows a year of significant growth for Honeycomb.
The company reported ending 2025 with $275 million in Gross Written Premium while continuing to expand its geographic footprint and product portfolio. Honeycomb now operates in more than 20 U.S. states and says its insurance offerings are accessible to over 65% of the U.S. population.
The company also manages more than $100 billion in insured assets, highlighting the scale it has achieved as demand for data-driven insurance solutions continues to increase.
The additional capital will support expansion into new states, development of new insurance products, and further investment in Honeycomb’s AI-powered underwriting capabilities.
Why Investors Are Paying Attention
Insurance has historically been viewed as a difficult industry for startups due to regulatory complexity, capital requirements, and exposure to large-scale risks. However, investors increasingly see technology-enabled insurers as an opportunity to improve efficiency and profitability in a market often dominated by legacy systems.
Oren Zeev, Founding Partner at Zeev Ventures, believes Honeycomb’s ability to balance growth with operational discipline sets it apart.
“Honeycomb has built something that is rarely seen in insurance—a company that has scaled rapidly while maintaining a lean operating model,” Zeev said. “The commercial property insurance market remains underserved, and Honeycomb is well positioned to become a leader in the category.”
AI’s Growing Role in Insurance
Honeycomb’s latest funding round reflects a broader trend across the insurance industry, where artificial intelligence is increasingly being deployed for underwriting, claims management, fraud detection, and risk assessment.
As property owners face growing concerns around climate-related risks, rising construction costs, and changing market conditions, insurers are under pressure to improve the accuracy of their pricing and risk models.
AI-powered platforms like Honeycomb aim to address those challenges by moving away from generalized risk assumptions and toward property-level analysis.
This approach not only helps insurers make more informed decisions but also creates opportunities to identify lower-risk properties that may be overlooked by conventional underwriting methods.
Positioning for the Next Phase of Growth
With fresh capital, expanding market reach, and a growing portfolio of insured assets, Honeycomb is positioning itself as a significant player in the evolving commercial property insurance market.
As AI adoption accelerates across financial services, the company is betting that more precise risk analysis and data-driven underwriting will become a competitive advantage in an industry undergoing rapid change.
For Honeycomb, the next chapter centers on scaling its platform, expanding product offerings, and continuing its push toward becoming a leading provider of AI-powered commercial property insurance in the United States.