Delegance Raises $3.1 Million to Challenge Traditional Insurance Broker Commissions

Led by Grit Capital Partners, the pre-seed funding supports an AI-native commercial brokerage offering a flat, disclosed 5 percent fee in place of traditional commissions of 15 to 25 percent.

NEW YORK, Oct. 20, 2026 /PRNewswire/ -- Delegance Brokerage, an AI-native commercial insurance brokerage challenging the traditional commission-based insurance model, today announced $3.1 million in pre-seed funding led by Grit Capital Partners, with participation from Core VC, Gilgamesh Ventures, and Outside VC.

Delegance secured its funding after establishing its brokerage operations. The company is licensed in 51 jurisdictions, holds direct appointments with 25 insurance carriers including Chubb, Travelers, and The Hartford, and has secured more than $26 million in premium commitments for 2026.

Challenging the traditional commission model

Delegance founder and CEO Alexander Ledbetter developed the company's business model after working at commercial insurance carrier AXA XL in 2023. During that time, he observed a large business renew its insurance policy year after year for more than a decade. Its broker collected a 20 percent commission annually, even as the coverage remained largely unchanged.

"That commission paid for paperwork, and the paperwork never got faster," said Ledbetter. "I taught myself to code so software could do that work. The business should keep the money the paperwork used to cost."

How Delegance works

Businesses can upload their existing insurance policies or answer a brief series of questions to obtain quotes. Delegance supports more than 4,000 business classifications and over 36 types of coverage, including general liability, workers' compensation, property, commercial auto, cyber, professional liability, and directors and officers insurance. Many business classifications qualify for instant quotes, while specialty and excess risks are directed to appropriate insurance markets through wholesale partners.

Delegance also automates much of the work traditionally associated with ongoing policy servicing. Through a single customer account, businesses can obtain certificates of insurance in seconds, request any of 64 types of endorsements and policy changes, file and track claims, and receive proactive renewal reviews. Orin, Delegance's AI agent, answers coverage questions using customers' existing policies through the company's online portal, email, phone, and chat. Licensed insurance brokers remain responsible for complex placements, claims, and coverage decisions.

By automating much of the servicing process, Delegance offers a flat, disclosed 5 percent fee in place of traditional brokerage commissions that typically range from 15 to 25 percent. According to the company, this model reduces total insurance costs by 10 to 20 percent on a typical placement while maintaining access to the same admitted insurance carriers.

Serving businesses across industries

Delegance serves businesses across a range of industries, including construction and skilled trades, commercial real estate, ecommerce and consumer brands, healthcare practices, and professional services. Private equity firms also use Delegance to consolidate insurance management across their portfolios through master insurance programs. In one example, an 11-property commercial real estate portfolio with more than $100 million in insured value is now managed under a single insurance program. The company also works with banks and software platforms that refer business customers seeking commercial insurance coverage.

Supporting continued growth

Delegance plans to use the new capital to expand its team of licensed insurance brokers and engineers while strengthening partnerships with banks, private equity firms, and software platforms.

About Delegance Brokerage

Delegance Brokerage is an AI-native commercial insurance brokerage headquartered in New York. It quotes, places, and services commercial insurance for businesses from single contractors to private equity portfolios, by web, mobile app, email, phone, chat, and API. Delegance charges a flat, disclosed fee in place of a traditional commission. The brokerage is licensed in 51 jurisdictions and appointed directly by 25 carriers. Learn more at delegancebrokerage.com.

CONTACT
Press Contact
[email protected]

SOURCE Delegance Brokerage