Next Insurance partners with Amazon Business Prime
The service will provide policies to buyers or sellers on the popular Amazon e-commerce site.The upcoming startup’s offerings will include Professional Liability, Commercial Auto, Tools and Equipment, General Liability and Worker’s Compensation cover to Amazon Business Prime members.
The news follows on from the acquisition of AP Intego - the Massachusetts-based digital small commercial insurance agency and one the US’s fastest-growing Insurtech companies.
Next Insurance has enjoyed a meteoric growth over the past 12 months, registering a $250m Series D funding round in 2020 - one of the largest that took place globally last year.
Amazon insurance partnership
According to reports, Next Insurance is also offering an exclusive 10% discount on general liability and professional liability policies to encourage adoption and incentivise customers.
The insurtech is also aiming the products at businesses that sell goods and services on Amazon. The online retail giant specifies that particular sellers that earn a gross sum of $10,000 per month for three consecutive months must operate with insurance.
Todd Heimes, Director of Amazon Business Prime told the press, "We know that small business owners are looking for innovative and cost-effective ways to streamline their businesses and save time, and that's what this partnership with Next Insurance helps achieve.”
He continued, “We believe Next Insurance offering products to Business Prime is another example of how this program provides value and benefits to members."
Speaking about the collaboration, Guy Goldstein, CEO of Next Insurance said, "We believe the future of the insurance buying experience involves meeting customers where they already are and making it easy to purchase customized and affordable policies. With Amazon Business Prime, we are taking a large step toward providing greater access to seamless insurance coverage."
Global investment in insurtech reaches all-time high
Global investment in the InsurTech sector reached an emphatic record during H1, 2021, as half-year funding of US$7.4 billion exceeded full-year investment in 2020, and in every other year, according to the new Quarterly InsurTech Briefing from Willis Towers Watson.
It was found that the latest quarter saw 162 deals yield more than $4,824 million in investment, a 210% increase over Q2, 2020. The enormous quarterly total, itself more than any annual total before 2019, was driven largely by 15 mega-rounds of $100 million or more. Collectively, these deals reached $3.3 billion, or two-thirds of total funding during the quarter. The money was raised predominantly by later-stage players seeking expansion.
A need for the insurance community to reflect digital changes
Series B and C fundraisings drove a large number of deals in the second quarter, but the number of early-stage deals also increased. They were up by more than 9% from the previous quarter, and 200% from pandemic-stricken Q2, 2020. As a percentage of overall deals, early-stage activity held roughly steady, at 57%.
InsurTechs focused on distribution accounted for 55% of start-up deals, and for 10 of the 15 mega-rounds. Most of the distribution InsurTechs target reduced dependence on agent channels. Of all Q2 deals, 73% were for P&C-related InsurTechs, while 43 companies raised funds for L&H technology. Funds were raised by companies from 35 countries, including new entrants Botswana, Mali, Romania, Saudi Arabia, and Turkey.
Dr. Andrew Johnston, global head of InsurTech at Willis Re, said: “As technology changes our lives, society will demand an insurance community that reflects and supports our changing, digitally empowered behaviours. Consumers and businesses increasingly expect insurance to be delivered when and how they want it, and risk carriers that fail to respond will fall away over time. To embrace technology is a minimum survival condition. Those that use it to redefine service in the insurance world will thrive. That means a positive future for InsurTechs that bring a truly differentiated business approach to our industry. Some of them will create untold long-term opportunities for themselves and the insurance sector.”