Small business insurer NEXT Insurance is celebrating today after announcing US$265m’s worth of additional equity funding – its second milestone achievement in less than a week.
Allstate and Allianz are investing the money in the Silicon Valley-based insurtech as part of a broader strategic partnership. The tie-up with Allstate will be targeted towards product development, with both companies combining their expertise in small business insurance to bring innovative new products to market; while NEXT Insurance will also deepen its reinsurance relationship with Allianz.
It comes just two days after the company announced it had accepted its 500,000th active small business insurance customer, heralding continuing success for the firm. It says the scale of the total market opportunity available for small business insurance in the US is over 30m customers.
NEXT Insurance was founded in 2016 by co-founders Alon Huri, Nissim Tapiro and Guy Goldstein. CEO Goldstein has now led the business to more than US$1.1bn’s worth of venture funding since its inception in 2016. Goldstein is a former fighter pilot in the Israeli Air Force and a graduate from Tel Aviv University, the country’s most prestigious higher education institute.
The company offers a range of insurance products aimed at small firms – from beauticians and dog groomers to Amazon sellers and architects – including various liability and E&O products, commercial auto cover, and even cyber insurance.
Partnership helps NEXT Insurance bring new products to market
“We founded NEXT because we saw an opportunity to help millions of small and microbusinesses across the US, and have made it our mission to help entrepreneurs thrive,” CEO and Co-Founder Guy Goldstein says.
“Building on our existing support, we are excited to welcome Allianz X and Allstate as investors, deepen our reinsurance relationship with Allianz Re, and foster a meaningful partnership with Allstate to offer millions of their customers our one-stop-shop small business insurance offering.”
Mario Rizzo, President of Property-Liability at Allstate Insurance, adds: “Combining Allstate’s operational expertise, broad distribution network and strong brand awareness with NEXT’s capabilities will help NEXT’s unique platform bring new, innovative products to existing Allstate customers and the millions of underserved small businesses that want affordable, simple and connected protection. Together, we will meet the full insurance needs of small businesses, delivered on the platform of the future.”
And Dr Nazim Cetin, CEO of Allianz X, continues: “Small businesses are fundamental to every economy. NEXT Insurance understands the needs of this group deeply, and it has developed cutting-edge technology to address their common pain points.
"With Allianz’s deep expertise in this sector and NEXT’s technology, we can further our joint goal of giving customers the courage and security to take on the future with confidence.”
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