(Image source: Next Insurance homepage.)
Next Insurance (Palo Alto), a startup direct seller of small business insurance announced today that it has raised $250 million in a Series D financing led by CapitalG, Alphabet’s (Mountain View, Calif.) independent growth fund, with participation from FinTLV, a Tel Aviv-based InsurTech VC, and existing investor Munich Re (Munich). CapitalG Partner Sumiran (“Sumi”) Das will join the Next Insurance Board of Directors. The funding round brings Next Insurance’s total capital raised $631 million.
The company describes its mission as bringing simple, affordable, and tailored insurance products to the American economy’s most important growth engine: small businesses and the self-employed. Next Insurance asserts that its technology-first approach drives down costs by up to 30 percent when compared to traditional policies. The company offers the following points as demonstration of its momentum in 2020 include:
- Next Insurance has increased its Gross Written Premiums (GWP) year-over-year by 133% and recently recorded $750,000 in GWP in a single day, a 75x increase in three years.
- Next Insurance’s commitment to being the one-stop-shop for small business insurance and a customer experience leader has helped it grow to more than 100,000 customers. As of today, Next Insurance is available to 1,300 types of businesses in 50 states and provides six insurance offerings, including General Liability, Professional Liability, Commercial Auto and Workers’ Compensation coverage, all under one roof.
- Next Insurance has increased headcount by 50 percent in 2020, with plans to hire over 200 new employees over the next 12-18 months across their offices in Palo Alto, Austin and Israel.
- The company has been recognized in areas like growth, innovation, corporate culture and outstanding customer experience by Forbes, JMP Securities InsurTech 50, CB Insights and Real Simple.
“Next Insurance is modernizing insurance for small business owners—making it fast and simple to get broad, customized coverage,” comments Sumi Das. “We believe that there is an opportunity to use technology to transform the small business insurance experience in the U.S. and build a national insurance leader. Next Insurance has the right team and capabilities to capitalize on this vision and is well on its way to doing so. We are proud to partner with Guy Goldstein and the Next team to help them accelerate their vision.”
Next Insurance contrasts its small business insurance offering with large insurance carriers’ historical “one-size-tries-to-fit-all” products across large commercial, personal and auto lines, none of which meet the specific needs of micro and small businesses. “These generic policies eat up cash flow and don’t address the unique requirements of an independent carpenter, architect, or small retail boutique,” a company statement says. Next Insurance says that it has built its digital product portfolio from the ground up using machine learning, data science and modern customer support practices to deliver a more customized, affordable, and delightful insurance experience.
Right Team, Approach, Products
“We aspire to help businesses thrive by delivering phenomenal insurance products and experience,” comments Guy Goldstein, co-founder and CEO of Next Insurance. “Insurance is a market primed for a new approach—one that believes it is a social good and cares for its customers. We believe we have the right team, the right approach and the right products to enable us to lead the shift in this industry, and we are excited to have CapitalG joining the ride.”
Next Insurance reports that in the past 60 days it has added Tools and Equipment, and Hired and Non-Owned Auto (HNOA) coverage and expanded Workers’ Compensation coverage to more markets. The company will continue to expand existing product offerings while introducing new products in 2021 to better serve the specific needs of small businesses in industries like accounting, construction, fitness, retail, and many more.
Next Insurance says benefits to insureds include access to U.S.-based licensed insurance advisors, tools and services such as 24/7 access to certificates of insurance from a mobile device or computer and in-house claims filings where a decision is typically made within 48 hours.