(Image credit: Schach 100.)
Next Insurance (Palo Alto), a startup direct seller of small business insurance announced today that it has raised $250 million in a Series C funding round from Munich Re. Next Insurance says the funds will be dedicated to new product development as the company scales its products. Next Insurance reports that it will significantly accelerate its customer expansion initiatives, with the objective of making the company the only online one-stop-shop for all small business property/casualty insurance. The funding round brings Next Insurance’s total funding to $381 million in just over three years, with a valuation of over $1 billion. The company became a licensed insurance carrier in May 2018.
Next Insurance provides digital small business insurance coverage across the U.S., aiming to disrupt the traditional industry model by enabling businesses to acquire all property/casualty insurance products in one place and at any time. Next Insurance’s products include, general liability, professional liability, commercial auto and, as of today, workers’ compensation coverage. The company provides insurance coverage to over 1,000 types of business with policies it describes are tailored to policyholders’ needs, simple to understand and affordable.
“We have been working with Munich Re since the beginning, and they have been a great partner in helping us grow and develop our business,” comment Guy Goldstein, Co-Founder and CEO of Next Insurance. “We launched Next Insurance in order to transform the small business insurance industry and this new investment will continue to help us grow our team, develop our technology, deliver phenomenal service and accelerate customer growth. We are excited about the future of insurance and are proud to be, together with Munich Re, drivers of industry change.”
In addition to its one-stop-shop proposition, Next Insurance offers other advantages to customers, including its Live Certificate real-time certificate of insurance verification. Next Insurance also offers customers access to an online portal where policyholders can add additional insureds, update policy or payment information, send verifiable proof of insurance, and more, all from a smartphone or computer.
Last month, Next Insurance launched Next for Agents, a platform that lets customers purchase Next Insurance policies through an agent.
Outstanding Growth Opportunities
“Next Insurance’s data- and technology-driven business model offers outstanding growth opportunities, which we will harness together,” comments Joachim Wenning, Chairman of the Board of Management, Munich Re. “Next Insurance will benefit from our expertise in primary insurance and reinsurance. This investment emphasizes Munich Re’s commitment to be the leading provider of digital insurance solutions. It also helps Munich Re expand its footprint in the promising insurance market for small and medium-sized commercial customers in the United States. We are confident that building on our proven collaboration will benefit both Munich Re and Next Insurance.”