Scout InsurTech Interview with Sytrex

Sytrex is a co-pilot for re-insurance operations. They seek to automate MGAs and reinsurance brokers' operations with Vertical AI agents. Chris Luiz sat with Co-Founder and CEO, Carlos Chavez, to learn more about how Sytrex is impacting the industry.

Who are your clients?

Our ideal clients are MGAs with annual revenues between $5 million and $100 million. Right now, we’re focused on P&C, mostly marine and D&O risks. We’re targeting the U.S. and U.K. markets, especially London because it’s a global hub for reinsurers. We launched the product very recently, and we’ve already signed eight clients. That has brought in $60K in revenue in one month.

What does your product do?

Our whole idea is to disrupt as little as possible the way underwriters work today. Tony, our assistant, integrates directly into Outlook either via browser or desktop app. Tony scans the underwriter’s inbox and finds new opportunities, whether they’re brand new or up for renewal. It filters based on fit and extracts key details from the email content attachments, subject lines and messages, so the underwriter only sees what’s relevant.

Once a deal is selected, Tony helps generate emails, rejections, confirmations, requests for info. For example, it’ll draft a polite rejection if the deal is not relevant or assist in assigning the right underwriter if it is. We can customize assignments by criteria like risk type, deal size, capacity and so on. We’ve added features that MGAs love, like not getting blocked by brokers who submit incomplete info just to monopolize a deal.

Tony can also give you tips on what to exclude, what to flag and even pull in clause language to help build your deal. The goal is to keep the underwriter in control, while letting Tony handle the repetitive stuff so the underwriter spends time structuring good deals, not sorting through junk.

How much capital have you raised?

We have raised $1.1 million, mostly from VC funds from SF. So, we have Broom Ventures, Ito Capital, AAC Capital, a VC Fund from Mexico that's called Kuiper Ventures and a Scout investment from A16z.

Was the company born from within or outside the industry?

It’s a bit of a hybrid. We weren’t deep inside the reinsurance world before, but we were close to the workflows. So, we came in with a decent understanding of the problems and opportunities.

What growth metrics have you accomplished over the last 12 months?

We just launched three weeks ago, so our growth metrics are recent but very strong. In that short time, we’ve signed eight clients and are closing the month with $60K in revenue. Out of 10 demos, eight turned into paying customers. We’re already backed up with implementations starting in June, which shows how high the demand is. In early pilots, underwriters using Tony were able to review 30 times more deals than they could before.

Within your domain, what is the current challenge that the industry is facing?

The biggest challenge is accuracy. In insurance, especially reinsurance, 80 percent confidence just isn’t enough. One clause left in a contract by mistake on a $6 million deal can be catastrophic. A lot of startups stop at 80 percent by using foundation models like ChatGPT, but getting from 80 percent to 99 percent or better takes serious algorithmic fine-tuning, proprietary infrastructure and tight guardrails. That’s where we’ve focused from the start.

How does Sytrex take a unique approach to providing value?

We often hear agencies say, "We already have a virtual assistant or offshore team handling this." But the problem is, offshoring still relies on manual work. It’s costly, introduces security risks and can still cause errors. Adapt eliminates the need for outsourced processing altogether. Our AI does the same work instantly, accurately and at a fraction of the cost.

What inspired you to start this company?

My dad is in the industry, so I’ve seen the challenges up close. That personal connection was a big driver for me.

Can you share any goals for the next 12 months?

Our first year is all about winning the MGA and reinsurance brokerage market. Once we’ve nailed that, we’ll expand into areas like insurance carriers, claims and adjacent workflows that align naturally with our product.

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