(Image source: NEXT homepage.)
NEXT Insurance (Palo Alto), a technology-focused direct seller of small business insurance, has announced its strategic partnership with Allstate (Glenview, Ill.) that will combine the companies’ expertise in small business insurance to develop and offer innovative and unique new products to a large underserved market, as well as a partnership with Allianz (Munich) involving a commitment to deepening its reinsurance relationship with the company. The partnerships come with a $265 million strategic investment from Allstate and Allianz X, the insurer’s investment arm.
NEXT Insurance describes itself as founded on a digital-first, data-driven approach to address the specific needs of small business owners that had previously been unmet. Its use of advanced technologies, such proprietary machine learning algorithms that enable the provision of a quote with a few clicks, has simplified the purchasing and servicing processes and provide easier, more affordable and tailored coverage, the company says.
“We founded NEXT because we saw an opportunity to help millions of small and microbusinesses across the U.S. and made it our mission to help entrepreneurs thrive,” comments Guy Goldstein, CEO and co-founder, NEXT Insurance. “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.”
NEXT says it is committed to serving the more than 33 million small businesses in America, one of the largest, and most important, segments in the U.S. economy. Today over a half a million small businesses across the U.S. rely on NEXT for its easy-to-use online platform, time-saving resources, and essential coverage, including general liability, commercial property, workers’ compensation, and other coverage, the company reports.
“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,” comments Mario Rizzo, President, Property-Liability, Allstate Insurance. “Together, we will meet the full insurance needs of small businesses, delivered on the platform of the future.”
Courage and Security
“Small businesses are fundamental to every economy,” comments Nazim Cetin, CEO, Allianz X. “NEXT Insurance understands the needs of this group deeply, and it has developed cutting-edge technology to address their common pain points. With Allianz’ 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.”
Ardea Partners LP (New York/London) served as financial advisor to NEXT Insurance.